Intangible Valuation
Value, contrarian, coat tail rider, idiosyncratic research

Key Tronic: Collecting Cash And Long-Term Strategic Success

Key Tronic Corp. (NASDAQ:KTCC) is a U.S. based electronics manufacturer. The majority of its manufacturing capacity resides just across the U.S. border in Mexico. The remainder lies in a plant in Spokane, Washington and in two plants in China. The company would be classified as an "electronic manufacturing services" business or an EMS (specifically a Tier II EMS). Business of this type is also known as "electronic contract manufacturing," which better encapsulates what the company does.

It contracts with large OEMs to do batch manufacturing jobs. For instance, as of July 30th, 2012, it had manufacturing jobs under 165 separate programs from 48 distinct customers - all at different stages in program maturity. This has led the...

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