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Key Tronic Corp. Message Board

  • jmatson.rm jmatson.rm Dec 12, 2012 1:25 PM Flag

    SGMA

    Earnings were released this morning. Nice move up.

    Same business as KTCC.

    Does this portend positives for KTCC?

    jmat

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    • jmat,

      I've been doing some decent SGMA trading over the past few qtrs. Bought when they announced their last earnings release at around $3.80 (as I mentioned on SGMA board back then)...and sold upper fours. Bought back recently in the low fours, and flipped some out today in the upper fours.

      I don't think you can really extrapolate out too far on SGMA's qtrs to KTCC....SGMA's just too small a data point. Although admittedly they are similar in that both have large facilities in Mexico, and others in China and the US.

      SGMA had some nice comments re new customers, and longer term confidence. Short term seemed more up in the air due to political uncertainties weighing on the economy.

      KTCC is still cheaper than SGMA on a p/e basis normalized for one time charges and taxes. Of course SGMA is super cheap on a book basis....trading under one-half tangible book value. Its not a super high quality balance sheet, with a decent amount of debt and little cash, but SGMA does own their three largest facilities, .in Acuna, Mexico; Elk Grove, Illinois; and somewhere in China.

      best.

    • Seems like a prime acquisition target for ktcc yo.

 
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