ULBI, AUO, KEM, SPA, AVX, LGL, Electronics - Misc Stocks Undervalued
August 4, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Electronics - Misc sector and these stocks are the most undervalued as of today. ULTRALIFE CORP (NASDAQ:ULBI), AU OPTRONICS CORP-SPON ADR (NYSE:AUO), KEMET CORP (NYSE:KEM), SPARTON CORP (NYSE:SPA), AVX CORP (NYSE:AVX), LGL GROUP INC (AMEX:LGL) are all expected to go Up as they are Undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.
The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:
Symbol Company Name Last Close Fair Value Valuation Industry ULBI ULTRALIFE CORP 4.7 10.31 54.40% Undervalued Electronics - Misc AUO AU OPTRONICS CORP-SPON ADR 5.52 11.86 53.50% Undervalued Electronics - Misc KEM KEMET CORP 11.64 22.93 49.20% Undervalued Electronics - Misc SPA SPARTON CORP 9.04 10.25 11.80% Undervalued Electronics - Misc AVX AVX CORP 13.49 17.42 22.60% Undervalued Electronics - Misc LGL LGL GROUP INC 9.4499 11.37 16.90% Undervalued Electronics - Misc
Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.
Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.
ULTRALIFE CORP (NASDAQ:ULBI) - Ultralife Corporation offers products and services ranging from portable and standby power solutions to communications and electronics systems worldwide. It serves government, defense, and commercial customers through its engineering and collaborative approach to problem solving. The company operates in three segments: Battery & Energy Products; Communications Systems; and Energy Services. The Battery & Energy Products segment offers lithium 9-volt, cylindrical, and other non-rechargeable batteries; and rechargeable batteries, uninterruptable power supplies, and accessories, such as cables. The Communications Systems segment provides power supplies, cable and connector assemblies, RF amplifiers, amplified speakers, equipment mounts, case equipment, integrated communication system kits, charging systems, and communications and electronics systems design. The Energy Services segment engages in the design, installation, and maintenance of standby power and systems. It sells its products worldwide through a various trade channels, including original equipment manufacturers (OEMs), industrial and retail distributors, national retailers, and directly to the U.S. and international defense departments. The company was formerly known as Ultralife Batteries, Inc. and changed its name to Ultralife Corporation in June 2008. The company was founded in 1990 and is headquartered in Newark, New York.
AU OPTRONICS CORP-SPON ADR (NYSE:AUO) - AU Optronics Corp. engages in the research, development, production, and sale of thin film transistor liquid crystal displays (TFT-LCDs) and other flat panel displays. The company's TFT-LCD panels are used in computer products, such as notebook computers and desktop monitors; consumer electronics products comprising mobile phones, digital photo frames, digital still cameras, portable navigation displays, portable digital versatile disk players, digital camcorders, automobile display, and amusement and printer displays; LCD televisions; and industrial displays, such as automatic teller machines, point of sale systems, kiosks, industrial PCs, marine and aviation electronics, game machines, medical equipment, factory automation systems, e-signage, and public information displays. It sells its panels to original equipment manufacturing service providers and brand companies primarily in Taiwan and the Peoples Republic of China. The company was formerly known as Acer Display Technology, Inc. and changed its name to AU Optronics Corp. in May 2001. AU Optronics Corp. was founded in 1996 and is based in Hsinchu, Taiwan.
KEMET CORP (NYSE:KEM) - KEMET Corporation, together with its subsidiaries, manufactures and sells capacitors worldwide. The company offers tantalum, multilayer ceramic, solid and electrolytic aluminum, film, and paper capacitors. Its products are used in audio systems, tire pressure monitoring systems, power train electronics, instrumentation, airbag systems, anti-lock braking systems, electronic engine controls, air conditioning controls, and security systems in the automotive industry; copiers, point-of-sale terminals, and fax machines in business equipment industry; and cellular phones, telephones, switching equipment, relays, base stations, and wireless infrastructure in the communications industry. KEMETs products are also used in personal computers, workstations, mainframes, computer peripheral equipment, power supplies, disk drives, printers, and local area networks in the computer-related industry; electronic controls, measurement equipment, instrumentation, solar and wind energy generation, and medical electronics in the industrial sector; and DVD players, MP3 players, game consoles, LCD televisions, global positioning systems, and digital still cameras in the consumer industry. In addition, the companys products are used in avionics, radar, guidance systems, and satellite communications in the military/aerospace; and wind generation systems, solar generation systems, geothermal generation systems, tidal generation systems, and electric drive vehicles in the alternative energy industry. It supplies its products to electronics original equipment manufacturers, electronics manufacturing service providers, and electronics distributors. KEMET Corporation was founded in 1919 and is headquartered in Simpsonville, South Carolina.
SPARTON CORP (NYSE:SPA) - Sparton Corporation, together with its subsidiaries, offers electronic manufacturing services primarily for medical device, defense and security systems, and electronic manufacturing services industries worldwide. The companys Medical segment engages in the contract development, design, production, and distribution of medical related electromechanical devices for the medical OEM and ET customers primarily in the vitro diagnostic and therapeutic device areas. Its EMS segment involves in the contract manufacturing, assembly, design, preproduction, prototyping, and/or box building assemblies, such as flight control systems and fuel control systems for the aerospace, medical diagnostics systems, security systems, detection systems, lighting, and defense. The companys DSS segment engages in the design, development, and production of electromechanical equipment, such as sonobuoys, an anti-submarine warfare device used by the United States Navy and foreign governments; and performs an engineering development function for the United States military and prime defense contractors on advanced technologies for defense products, and replacement of current systems. It also offers non-sonobuoy related manufacturing and services. Sparton Corporation was founded in 1900 and is headquartered in Schaumburg, Illinois.
AVX CORP (NYSE:AVX) - AVX Corporation, together with its subsidiaries, manufactures and supplies passive electronic components and interconnect products worldwide. The company operates through three segments: Passive Components, Kyocera Electronic Devices (KED) Resale, and Connectors. The Passive Components segment offers surface mount and leaded ceramic capacitors, radio frequency (RF) thick and thin film components, tantalum capacitors, film capacitors, ceramic and film power capacitors, super capacitors, EMI filters, thick and thin film packages, varistors, thermistors, inductors, and resistive products. The KED Resale segment sells ceramic capacitors, frequency control devices, SAW devices, sensor products, RF modules, actuators, acoustic devices, and connectors. The Connectors segment manufactures and sells electronic connectors, inter-connect systems, and memory connectors. The companys products are used in electronic devices to store, filter, and regulate electric energy. AVX Corporation markets its products through its direct sales force and independent manufacturers representatives to customers in various industries, such as telecommunications, information technology hardware, automotive electronics, medical devices and instrumentation, industrial instrumentation, defense and aerospace electronic systems, and consumer electronics. The company was founded in 1972 and is based in Fountain Inn, South Carolina. AVX Corporation is a subsidiary of Kyocera Corporation.
LGL GROUP INC (AMEX:LGL) - The LGL Group, Inc., through its subsidiary, M-tron Industries, Inc., designs, manufactures, and markets custom-designed engineered electronic components that are used primarily to control the frequency or timing of signals in electronic circuits. Its frequency control devices consist of packaged quartz crystals, crystal oscillators, and electronic filters. The companys products include the Packaged Crystal, a single crystal in a hermetically sealed package used by electronic equipment manufacturers to build oscillators for frequency control in their electronic devices; the Clock Oscillator, a self-contained package with a crystal and electronic circuitry that is used as a subsystem to provide frequency control for their devices; the Voltage Controlled Crystal Oscillator, a variable frequency oscillator whose frequency can be changed by varying the control voltage to the oscillator; the Temperature Compensated Crystal Oscillator, a stable oscillator designed for use over a range of temperatures; and the Oven-Controlled Crystal Oscillators designed to produce stability over a range of operating conditions with very low phase noise. Its products also comprise electronic filters that provide filters with defined capabilities to filter out unwanted portions of timing signal. The LGL Groups products are used in infrastructure equipment for the telecommunications and network equipment industries, as well as in electronic systems for military applications, avionics, earth orbiting satellites, medical devices, instrumentation, industrial devices, and global positioning systems. It has operations in the United States, Hong Kong, and India. The LGL Group, Inc. was formerly known as Lynch Corp. and changed its name on June 22, 2006. The company was founded in 1917 and is headquartered in Orlando, Florida.
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