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Tessco: Close to Target, Time to Sell

|Includes:TESSCO Technologies Incorporated (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