Savvy Trades and Investments

[Swick984]

BELFB - I have built an overweight position here at 7.5% of my portfolio with purchases as low as $34. There were some softer comments overall on 2023 indicating a flat year from a revenue perspective as the magnetic solution business declines and OEM customers look at de-stocking some of their elevated inventory levels across all segments.

The company continues to focus on improving margins and I anticipate 2023 will show continued improvement on the bottom line. The aerospace and mobility segments will continue to grow rapidly in 2023 and contribute more high margin sales, improving mix. Power solutions remains strong and will continue to perform well. I anticipate a reacceleration of growth in the back half 2023 into 2024.

At under 7x EBIT, I think it is still mispriced, though fair value is likely closer to $45-$50 than the $55 I wrote before the conference call.