Replies to post #239777 on SwingTrade Member Forum (SWING)

[MikeDDKing]

I picked up a good sized position in TESS yesterday. I'm thinking it is likely in the $18 ballpark within the next 12 months and last traded at $11.66. Here are some bullet items as to why I like them.

1. They guided for $0.37-$0.45 in EPS for their June quarter (fiscal Q1).

2. Fiscal Q2 and Q3 are their seasonally strongest quarters so likely Q2 and Q3 will be even stronger than Q1.

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 was explained nicely in the fiscal Q3 CC and to a lesser extent in the fiscal Q4 CC. I'm not sure how to model this area going forward but I think it is a nice growth item.

4. The long term earnings growth trend for TESS is quite nice.

5. They have a nice dividend of $0.10/share/quarter.

6. They have a nice balance sheet with an approximate BV of $10.44/share, TBV of $8.90/share, and cash of $1.08/share. The combination of the balance sheet and dividend gives them some good downside protection IMO.

7. They rejected a buyout offer at $15.50 on 09/23/10. This offer was from their largest shareholder. I wouldn't be surprised to see this shareholder or someone else make a run at TESS.

[MikeDDKing]

SWINGTRADE PORTFOLIO TRANSACTION

 Date       Type    Symbol   Shares   Price     Amount       Cash     Return 
 ---------------------------------------------------------------------------  
 04/29/2011  Buy     TESS     100   $11.789  -$1,178.90    $1,647.28