It's interesting to look at how much of an investment in Synovis is cash and short-term securities. It's a little over a third of total market cap at these low prices. The actual enterprise value of SYNO is just over $90 million, or $8 per share. Of that amount, about $3 is net book value and $5 is market premium to book.

That's extremely cheap if you think earnings are going to rise at a reasonable pace. Since the cash essentially earns about zero these days, all of the earnings are attributed to the $8 enterprise value. It would be nice if SYNO could put more of that cash to work by timely acquisitions and growth. Pegasis was a pretty modest attempt at that, but hopefully the beginning. I'm hoping that the management presentation on November 3 will address more of their long-term thinking on growth opportunities. Too often these days it seems that corporate managments feels they will be punished by the market if they appear to want to take risks. My guess is that the topic won't be discussed much.