Stock Soars as Kaynar Hires an Advisory Firm

Kaynar Technologies Inc. shares surged 34% Wednesday after the Orange-based maker of fasteners for airplane production said it hired an advisor to help review alternatives to increase returns to shareholders.

The stock rose $3.19 to $12.44 a share on trading of 204,300 shares, more than five times the three-month daily average.

Kaynar, which had sales of about $150 million last year, said it hired Impala Partners to help explore its options.

The company said it doesn’t expect to finish the review before year’s end. Kaynar executive vice president David A. Werner would not specify what options might be considered to improve the company’s stock value, but said that “everything’s on the table.”

On April 28, Kaynar’s stock hit a 52-week high of $34.50. “Valuation was ridiculously low,” said analyst Joel Tiss at Lehman Brothers Inc.

“The fastener industry has been going through violent consolidation for five years, and Kaynar is a bite-size morsel that would make a very attractive acquisition candidate,” Tiss said.

The company reported Wednesday that earnings were flat for the third quarter, while sales rose 20%

Net income totaled $3.4 million, or 37 cents a share, for the three months, compared with $3.4 million, or 38 cents a share, a year ago. Sales climbed to $45.3 million from $37.9 million.

Kaynar, which this week was ranked eighth on Forbes magazine’s list of the 200 best small companies, designs and produces specialty fastening products and systems for commercial aircraft and the defense industry.

The company operates manufacturing facilities in the United States, Australia and Hungary and sells its products worldwide.