The financials look great, they sold off the old Las Cruces facility, they are winning new business and management has made some smart moves. The price to earnings ratio of KTCC is so much lower than competitors, it seems this stock would be a steal at twice the price. Before I jump in with both feet, could someone please tell me, what am I missing?
What are you missing? Nothing. Keytronic has not adequately promoted the Company when compared to star performers like SPAR and other stocks. However, what you can look forward to, in my opinion, is for earnings to approach .20 to .25 per quarter gradually and a subsequent increase in PE ratio to l5. This makes KTCC a future $ 12 to $ 15 stock. Their problems should be behind them with favorable sales and potential new business on the horizon. Resurrect this message in a year and let's see if I am correct.
potential profits are what you are missing. so, long as sales increase on the specialty products like the home land security projects, very profitable! so many oportunities at hand lead to, again potential profits both corporate and investment