March 23, 2005
SpeculatingStocks.com Stock Pick: Eltek Ltd. (ELTK)
Stock Price: $3.75 (short-term strong buy)
Eltek Ltd. is an Israeli manufacturer of advanced circuitry solutions. They specialize in the complex high-end of PCB manufacturing, i.e., HDI, multi-layered and flex-rigid boards.
This company has turned itself around over the past year culminating in a great fourth quarter released after the bell on Monday. They have successfully switched their focus to higher margin flex-rigid boards, manufactured by their new production processes and technology. Now the company is enjoying the fruits of the lucrative flex-rigid board market.
Revenue for the fourth quarter was $8.1 million with a profit of $446,000. This stunned the market and ELTK practically doubled from its Monday close. Investors are indicating a bright future for Eltek.
Keep this in mind, ELTK had a market cap of only $10 million before earnings were released. Now, they have a market cap of $20 million when they just had an $8 million in revenue, profitable quarter.
There 5.49 million shares outstanding and 2.80 million in the float.
SpeculatingStocks.com Target Price: We believe ELTK will reach $8.00 within the next week or two.