SwingTrade Member Forum

[MikeDDKing]

TESS is one of my favorites which I think will appreciate 35-100% in the next 6-9 months to $20-30/share. TESS is a wireless equipment provider that has a history of long term growth. They just announced blowout earnings for their first fiscal quarter. Here is some more background:

1. TESS guided for EPS of $0.37-$0.45 for fiscal Q1 (June) and delivered diluted EPS of $0.57! They last traded at $14.86.

2. TESS guided for fiscal 2011 earnings of $1.70-$2.10/share. I think there are great odds that they beat this guidance as they did for fiscal Q1. Based upon forward earnings of only $2/share they are trading at a very low multiple of 7.5.

3. The deal with GE transportation seems like it could be a significant growth item for them and also provides a platform to grow into other areas. This has been discussed in recent conference calls.

4. They have grown revenue and earnings each year for the past three years.

5. They pay a nice quarterly dividend which they increased today from $0.10/share/quarter to $0.15/share/quarter. That represents a 4% yield at current prices.

6. They have a very strong balance sheet with a book value of over $11/share.

I added some shares today on the report.