TESS is one of my favorites. I think it could possibly provide 100% return over the next year. TESS is a provider of wireless phone and infrastructure products. Here are some reasons why I like them:
1. TESS has grown consistently over the past ten years and this year so far is no exception. Here is a history of their revenue (note their fiscal year ends in March):
2011 $605.2M
2010 $522.0M
2009 $483.0M
2008 $521.0M
2007 $492.3M
2006 $477.3M
2005 $513.0M
2004 $352.7M
2003 $273.9M
2002 $248.9M
2. They are guiding for earnings of $1.80 to $2.10 per share for the fiscal year ending March 31, 2012. With a stock price of $13.39 they are trading at a multiple of less than 7 times the midpoint of that guidance. They have a history of exceeding guidance and increasing guidance so their guidance may be conservative.
3. The CEO stated the following in the CC regarding fiscal Q3'12 (ending December 31, 2011): "It will be a fabulous quarter."
4. They pay a $0.15/share/quarter dividend which is a current yield of 4.3%. Also, they have a history of increasing their dividend.
5. They have a nice balance sheet with a book value of $11.16/share, TBV of $9.66/share, and cash of $1.73/share. The combination of the balance sheet and dividend gives them some good downside protection IMO.
Mike
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Due diligence on my favorite stocks is located on the sticky note on the SwingTrade board.
