October 21, 2005

SpeculatingStocks.com Stock Pick: Methode Electronics, Inc. (METH)

Stock Price: $10.30 (long-term strong buy)

Methode Electronics Inc. is a maker of electronic components used in cars, personal computers and consumer electronics.

Right now, METH is at the bottom of its trading pattern while the company continues to keep its profits up and increase revenues. For the most recent quarter, Methode Electronics reported sales of $94 million, up 11% from a year ago. Earnings came in at a slight increase at $4.7 million as costs for silicone, urethane, and copper grew. Management is optimistic that second quarter revenues will be within the $102 - $107 million range.

METH pays a $0.05 dividend each quarter and has a book value of $7.50 with 37.4 million shares outstanding. METH has over $77 million in cash on the balance sheet and is currently trading at a PE of only 14.5.

SpeculatingStocks.com Target Price: We expect METH to reach $15 within the next 3 - 6 months.