Replies to post #234550 on SwingTrade Member Forum (SWING)

[SSKILLZ1]

KTCC

I brought some KTCC today in the 5.60’s. Seems rather cheap here for this growth story. Here is what I like.

1) KTCC is guiding for .75-.85 for the current Fiscal Year. If stock was given a 10 PE stock could go up 40% based on the midpoint of current guidance. Currently trading at roughly 7 times the midpoint of guidance. So I believe it is very cheap.

2) Stock has pulled back recently and should find support in the upper 5.50’s to low 5.60’s. If supports fail I will add more near the next support level in the 5.20’s where I assume it would definitely hold, and only expect it to go there if the market goes into free-fall over the coming days and weeks.

3) Company is in a major growth swing with revenues up 53% Y/Y last quarter. So not just a bottom line story, but a top line story as well.

4) Healthy Balance Sheet and currently trading under book value.

Conclusion: I believe KTCC is undervalued at this level and will continue to add on weakness. All is just my opinion, and I could always be wrong though.