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Tuesday, 06/22/2010 4:46:32 AM

Tuesday, June 22, 2010 4:46:32 AM

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KTCC is an electronics contract manufacturer which I have been buying recently.

Here are some reasons why I like KTCC:

1. KTCC is guiding for fiscal Q4 earnings of $0.14-$0.19/share. KTCC is selling at a low multiple based upon those earnings. Also, KTCC has a history of under promising and over delivering. Therefore, I think there is a good chance they exceed this guidance. Fiscal Q4 ends June 30, 2010.
http://finance.yahoo.com/news/Key-Tronic-Corporation-bw-124288616.html?x=0&.v=1

2. Per the fiscal Q3 2010 conference call there is roughly $100M in new business to ramp over the next year. With that kind of growth they could be producing EPS north of $0.25/share/quarter soon.

3. There were recent insider buys of KTCC:
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=7279994-905-9504&type=sect&TabIndex=2&companyid=4550&ppu=%252fdefault.aspx%253fcik%253d719733

4. KTCC has a rock-solid balance sheet with book value of $5.69/share.

Mike

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