PCTEL (NASDAQ:PCTI) is a compelling investment following the massive selling by index funds after the stock was removed from the S&P 600 Index on May 30th. Severe winter weather negatively impacted Q1 results; however, our primary research indicates that business has rebounded strongly in Q2. The Street clearly does not believe management's guidance for FY 2014 but our research suggests the guidance is attainable. We expect Q2 results will serve as a catalyst for the stock to revalue higher as investors become more comfortable that FY 2014 guidance is indeed realistic.
PCTI operates in a space with attractive fundamentals such as high gross margins, stable competition, and secular growth opportunities.
Following the purge by the index funds, PCTI...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|