Motorcar Parts of America Inc. (MPAA)

[MikeDDKing]

I really like MPAA for the following reasons and have been accumulating:

1. MPAA is in a recession resistant business selling remanufactured starters and alternators.

2. MPAA just reported diluted EPS of $0.21 and $0.25 excluding one-time items. They also made $0.90 in the trailing 12 months. They are cheap on any metric of trailing earnings.

3. MPAA is expecting to grow revenue for the remainder of the fiscal year. They should continue to grow earnings based upon increased revenue.

4. One of their one-time items this quarter was an inventory write-down. Inventory was written down because they decreased manufacturing costs. Thus a one-time item this quarter should result in higher gross margin going forward.

5. They are trading at a discount to their book value of $8.82.

6. They are entering one of their seasonally stronger quarters.