Saturday, July 28, 2012

Key Tronic: Keying In on Value

Key Tronic (KTCC) is a company that has come up a few times on this site, and has been a member of the Stock Ideas page for quite a while. A few months ago, it traded at a discount to its net current assets despite being a profitable company. Two months ago, it was discussed as a stock that could only go up, due to the fact that downside risks were minimal compared to upside potential.

Wednesday, investors hit pay dirt, as the stock showed a 20+% increase over the previous day's close following the company's quarterly results. This brings the stock's return to almost 400% over the last year. In a relatively short period of time, the stock went from a Ben Graham net-net to trading at a premium to its book value, meriting placement on the Value In Action page.

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