TNCR is a "BEST BUY" at this level.
The lowest price (I think) it will get is 17 and should bounce back at that point.
TNCR fundamental is great.
1. New products release recently.
2. After they pay off all their short term debt this year, they have only some long term debt left. And even if interest rate rocketed up this year (what Wall Street is most feared of), it will not hurt their profit. At that time, fund manager will be escaping out from Bank stock and put money in stock like this one. But if interest rate goes down, TNCR will be able to get new LT loan at a lower interest rate for company expansion.
3. Value Line predicted 1996 earnings of 2.90. At this price level, it's at P/E of 6.5, which is at a very low end for a cyclical company. P/E is normally between 8-10.
4. Profit Margin of this company is over 50%. As long as they are selling their products, they are making great deal of profits, which in return, increase shareholder's value.
5. For cyclical stock, always buy when "everybody" thinks that there are other opportunities out there, i.e., when "everybody" sells. Buy when they sell; buy when it's cheap.
6. With prices that cheap, it'll easily become a take over target for some one to buy out their company. FACE IT, they do have great products and these products are essential for the production and improvement of semi-conductors
These concluded why I think TNCR is a "STRONG BUY" at this level. Of course, there are always uncertainty in this market. But remember, the market is make up and controlled by "FEAR" and "GREED" which are the main ingredients of losing money. Forget psychology and use common sense.
HAPPY INVESTING (NOT GAMBLING) TO EVERYONE!! |
