Suggestion for a technology/growth stock that pays a dividend (!) and is trading at value stock valuations.
BELFB - Electronic components supplier. They supply to the networking division of 3Com and some divisions of Lucent, among others. For the three months ended 3/31/99, net sales rose 58% to $30.8 million. Net income rose 73% to $5.1 million. Those are pretty good growth numbers. NO long term debt. BELFB has paid a dime dividend in the last two quarters.
At March 31, 1999, Bel Fuse reported working capital of $46,139,000, a current ratio of 4.4:1, cash and equivalents of $14,775,000, no long-term debt, and stockholders' equity of $93,951,000. That's stockholders' equity of about $17.40 per share. There is one analyst making EPS forecasts, and they have them making $3.76 in 1999. The company made 95 cents last quarter, so this estimate seems reasonable.
Based on the estimate, the PE at today's price ($28) is only 7.5x, which seems pretty low for a company growing earnings at 73% year over year.
FYI - Last summer, the company split the stock into BELFA (which gets voting rights) and BELFB (which has no voting rights, buy receives a dividend). The total number of shares outstanding did not increase, however.
Well, is there a more attractive "value" stock out there?
Elroy |
