I'm the newby round here and so far I have put together a small list of stocks to watch. I can't for the life of me find anything wrong with Telit Communications TCM and can see it doubling over time. Even in the short term maybe 25% but thats a gut feeling which is hardly a reliable indicator. Everything seems to be rising and it's products will surely be in demand. Can somebody give me a good reason not to buy this stock?
At its current price of 252p the company seems to be reasonably well valued by the market (240p would appear to be fair value in my opinion, although if I were buying I would prefer the 227-237p range). The attraction is really the long-term potential. It is currently enjoying a rising price trend. Its sales growth and forecasted earnings growth are excellent. Revenues are increasing. The increase in net debt, according to the company, is mainly due to the ATOP acquisition and the required growth in working capital. The Board has already announced the interim results (to 30 June 2014) and stated that trading for the full year 2014 will be in line with expectations. The company is on my watchlist but I don't currently hold any shares in it.
