Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Neil H who wrote (7511)	6/9/1999 3:02:00 PM
From: Elroy	Read Replies (2) \| Respond to of 78659

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

To: Neil H who wrote (7511)	6/9/1999 9:25:00 PM
From: Paul Senior	Read Replies (3) \| Respond to of 78659

Thanks, I'll look closer at CELL and CPQ. Actually, CPQ might work out from these levels, I'm surprised to see. Regarding your comment about BELFB "looks good but no volume"---- exactly what relationship do you require between identifying and/or puchasing value stocks and the trading volume for those stocks. I see no correlation between trading volume and the realization of value in value stocks. And as far as BELFB itself, it looks to me like it trades every day. Paul Senior