This Tech Stock Set to Run |
| Written by GSCR Staff |
| Tuesday, 01 October 2013 07:06 |
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In yesterday’s Goldman Guide our conversation centered on how today’s football and investing mirror each other. The government officially shut yesterday, further demonstrating the point and adding to the long list of outside influences on the market
Life goes on though and it is still a bull market. As we mentioned in the Guide, tech and healthcare stocks that have not run yet, are set to run in 4Q13. TTM Technologies (NASDAQ – TTMI - $9.74) has had a rollercoaster year and is up just slightly under 3% year-to-date.
The Company provides printed circuit board (PCB) products and backplane assemblies worldwide. Its PCB products incl ude conventional, high density interconnect, flexible, and rigid-flex PCBs, as well as backplane assemblies and IC substrates. The Company also offers various services, such as design for manufacturability support during new product introduction stages; PCB layout design; simulation and testing services; quick turnaround production; and drilling and routing services. Its customers include original equipment manufacturers and electronic manufacturing service providers in various markets, including manufacturers of networking/communications infrastructure products, touch screen tablets, and mobile media devices.
Our winning formula has not changed and TTMI is primed for a run according to the recipe. Forward earnings per share are forecast to get into the black in 2014 making the FY P/E just over ten. The 5-day and 10-day DMA are bullish and the 20-day and 50-day very bullish from a technical analysis perspective. Average volume over the last 3 month period is just over 200K, which is somewhat on the low end, but accumulation seems to have picked up over the last few weeks with volumes over 400K several times. Earlier this month the Company closed one of its plants in China that had become inefficient. The move should impact the bottom line and help the Company sharpen its strategic focus. We think the $11 level is achievable in 4Q13. Have a great day!
Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.
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