Mr. O'Brien: The company I like best is Molex, and I like Molex best because they have nice exposure to what I see are some of the faster-growing end markets for connectors like smartphones and tablets. They have good exposure to automobiles, which actually should be a pretty decent place to be aside from the disruptions faced by the Japanese OEMs, again because of content growth. Cont.. To sum it up, I like them firstly because I think they have good exposure to some nicely growing end markets. And then secondly, they actually have the lowest margins in the industry. They're running at 12% right now, versus TE at 13% and Amphenol at 20%. I see some good margin upside as sales grow, and I believe they capture about 25% to 30% leverage on incremental sales dollars. Additionally, from a valuation standpoint, they are clearly trading at a discount to their peers, a substantial discount.
I bought today after watching it trade for a while technically it looked right for first entry. After reading this article investopedia and earnings fundamentally looks good. GL.