Firan Technology Group Corp. (FTG-T)

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.

It has done extremely well since he last recommended it. They made some management changes but he still likes it. There are more and more planes being ordered. It is fairly cheap but there is not a lot of liquidity to it. It still looks cheap. He thinks they will come out with better quarters.

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).

(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.

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.

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.

(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.

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.

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.

Airplane circuit boards. Extremely cheap company. Next year earnings move from $.20 to $.30 per share. Capacity utilization was not full, but with new contracts it will be. 6.5 times earnings next year. Not too many people know this story still. It is an early 2017 story still.

They do work within the space of circuit boards and put a lot of stuff into cockpits of high-end jets. Have some longer-term contracts and have been making some acquisitions. They are looking to increasing the capacity and manufacturing and using up some of their slack space. Made some smart acquisitions recently. Well-run. One of the benefits they are going to have from the tailwind is that once you win a contract, you win for a long time. Technically it has been consolidating for a period of time. Not very expensive.

Printed circuit boards, mainly for the airline industry. This is a very tiny company, and one fund manager owns about 50% of the shares. He likes the story. Had about 3 or 4 quarters in a row where things were improving quite a bit. The recent quarter wasn’t as strong as he would have hoped, but expects the next quarter or 2 will have very good earnings. Trading very cheap at about 10X earnings. Has a good backlog, but are going to have to show that the margins are there. The fact that they produce in Canada but sell in US$ should give them a bump. Expects good things over the next few quarters.

Just reported an unbelievable quarter. No analyst follows it. 70% of revenues are from the US yet 70% of operations are in Canada so the declining CAD$ benefits them. Earnings should accelerate over the next few years. You probably have not missed the run. The CAD$ has only helped them over the last couple of months. An 11 year high.