Steve, re: TESS, it is a distributor of other people products, typically a lower margin business (less than 5% margins), it is cheap by "standard measures" like PE and PSR, but many other distributors are cheap as well (I own PROG in that class, what a disappointment) and I used to own SEMI in the same class as well (got out quite some time ago before their reverse split). It seems to me that TESS is a distributor to the "margin" of the business, and thus their annual sales are a very small portion of the segment. If their sales were to drop 20%, they will not have enough margins to support profitability, at least short term until they adjust their support structure (a similar event happened to PROG in the last quarter). Thus, in summary TESS might be interesting if the technical picture improves, and could also be a "heaven" to funds seeking value investments, but we should see that if it breaks to a new high, not before IMTO.
By the way, the solar cells they inventory are some of the most antiquated designs I have seen in a long time (VBG).
Good luck out there.
Zeev |
