Today’s recommendation, from Russ Kaplan’s Heartland Advisor, is for bargain-hunters. Already cheap, according to Kaplan, this stock has had even more value lopped off by the market’s correction. Patient investors can take advantage of the discount now for long-term gains.
“My newest recommendation is AVX Corporation (AVX), which is an electronics company that sells a wide variety of products including timing devices, military products, module devices and other related items. It’s headquartered out of Fountain, South Carolina, and has regional offices throughout North America, South America, Asia and Europe.
“To me, AVX represents a value investor’s dream. It is currently priced below book value, has zero long-term debt and has a price/earnings ratio which is about half of an already undervalued market.
“AVX is currently selling in the $10 range, but in 2006 it traded at $20, on a lot less earnings.
“Electronics, a cousin of the high-tech sector of business, is an industry that is constantly evolving. Since its founding in 1972, AVX has demonstrated an excellent ability to adapt and lead in this change. In 1990, Kyocera, a more well-known Japanese electronics company, purchased a large block of AVX stock, creating a nice synergy between company resources.
“I see the potential for large capital gains with AVX. It may not happen immediately, but you will receive a nice dividend while you wait.”
- Russ Kaplan, Heartland Advisor, May 25, 2012