Peter Imhof Firan Technology Group Corp. FTG-T BUY Sep 28, 2017

A Top Pick May 12th. There are only a couple of analysts following this. They do circuit boards for airplanes, which are complicated. The company has done a good job in growing earnings. Made an acquisition recently in order to give them full capacity utilization. They will bring this in-house so that utilization rates will go up and margins should increase. Very cheap.

Circuit boards for airplanes. Very complex. They have done a good job. He likes the earnings growth. They have good visibility. It trades at a low multiple. The only caveat is that they are thinly traded.

(Top Pick May 12/16, Up 49.16%) They have good visibility. Now there are a few people covering it. Earnings were up over 20% last quarter. They made an acquisition and so now can ramp up their manufacturing. It is still very small and they have one very large shareholder. He thinks it will continue to do well.

It has been way too successful for him to be buying it now. Insiders may have been selling. When that happens, you have to be somewhat wary, especially if they are selling quite a bit.

This does circuit boards for aerospace. Market cap is only around $80 million or so. They’ve put up some very good numbers in terms of earnings. Made an acquisition about a year ago, and you are going to start to see the costs and synergies with that acquisition as they get the capital and utilization up. He still likes the story.

(A Top Pick May 12/16. Up 70%.) Electronic circuit boards and display equipment. It looks like they are going to put up some good earnings this year. In 2018 they’ll be able to earn $.40 or so. The problem is, there is not much liquidity to it.

They are growing organically very nicely and making accretive acquisitions as well. They have a record backlog right now that will translate into results next year and they expect their margin to increase after the most recent integration is complete. (Analysts’ target: $5.28).

Circuit boards for airplanes. Earnings have been quite volatile. It is a bit lumpy. They made acquisitions and are trying to get the synergies from them. You have to hold on. The visibility is quite good. There have been quite a few takeouts in that sector. He likes the space and the management team.