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Tom Armistead
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I am a retired accountant, having spent the early years of my career in the insurance industry and the later part in the field of accounting. My insurance experience has given me the willingness to accept investment risk if I feel the return justifies it; also, an interest in applying risk... More
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Tom Armistead's Instablog
  • Tessco: Close to Target, Time to Sell 0 comments
    Aug 5, 2009 11:13 AM | about stocks: TESS

    I wrote Tessco (NASDAQ:TESS) up favorably seekingalpha.com/article/113115-tessco-do-buybacks-make-sense on 1/4/09 at 9.27.  The stock has since traded up as high as 17.00 and is now trading at 15.99. 

    My target price at the time was 18.00 within two years.  By March 9 the stock was selling under 6.00 and I bought some at the time for 5.60, a small buy, part of an ongoing project at the time to be sure I was buying at the bottom.  That price was well under tangible book of 10.44 and afforded ample margin of security.  

    I have since liquidated my position, selling early because the stock is not particularly liquid and I wanted to maximize flexibility. 

    2010 Guidance comes in at 1.35, applying a multiple of 15 would give you 20 a share.  Tessco is a favorite of mine and I have never lost any money on it.  However, at this point in time there are other tech stocks trading at bigger discounts to realistic targets, and with that in mind I would look for lower prices before I would re-enter this position.

    Stocks: TESS
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