Virco Manufacturing Corp. (VIRC-Q)

Our PAST TOP PICK with VIRC has triggered its stop at $12.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment loss of 16%, when combined with our previous guidance.  

We reiterate VIRC as a TOP PICK.  The developer of educational modular furniture continues to retire debt, while keeping cash reserves steady and supporting a 32% ROE.   Most recently reported quarterly sales were up 34% with expanding margins.  We continue to recommend a stop at $12, looking to achieve $19.00 -- upside potential of 17%.  Yield 0.3% 

We reiterate this manufacturer of movable furniture for educational settings as a TOP PICK.  Recently reported earnings showed a 33% increase in quarterly shipments and a widening gross margin.  It trades at 10x earnings and supports a 27% ROE.  Cash reserves are growing, while debt is retired.  We recommend trailing up the stop (from $9.50) to $12.00, looking to achieve $19.00 -- upside potential of 16%.  Yield 0.3%  

We select this manufacturer of furniture in Canada and the US as a TOP PICK.  Recently reported earnings grew by 32% as margins expanded.  The company faces a record order backlog and has aggressively worked to be almost debt free.  It trades at 9x earnings, 2.2x book and supports a 27% ROE.  We recommend setting a stop-loss at $9.50, looking to achieve $16.00 -- upside potential of 33%.  Yield 0.3%