ByJ. Royden Ward, Editor of Cabot Benjamin Graham Value Letter
From Cabot Wealth Advisory 2/17/11 Sign up for free Cabot Wealth Advisory e-newsletter
Avnet (AVT) is a distributor of electronic components, enterprise computer and storage products and embedded subsystems. From suppliers, the company receives electronic components, computer products and software, and resells to manufacturers, sometimes with assembly or other value added by Avnet. The company sells to more than 300 electronic component manufacturers. To retailers, Avnet markets and sells mid- to high-end servers, data storage, software and the services required to implement these products and solutions.
Corporations are fueling demand for storage products and networking gear, as those companies upgrade their data centers to improve efficiency. Avnet’s recent purchase of Bell Microsystems will add substantial sales in 2011. I expect 16% earnings per share (EPS) growth during the next five years. At 9.3 times current EPS, AVT shares are a bargain. The company does not pay a dividend.
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Editor of Cabot Benjamin Graham Value Letter
A lifelong investment professional, J. Royden Ward applies his 40 years of investment research, portfolio management, writing and publishing experience to his role as analyst and editor of Cabot Benjamin Graham Value Letter, which is directed to long-term investors seeking a guide to profitable value investing based on the time-tested systems originally developed by Benjamin Graham, the Father of Value Investing. A second-generation disciple of Benjamin Graham, Roy in 1969 pioneered the development of a computerized model that applied the formulas developed by Graham using a unique ranking system. Today, Roy applies his system to two models in the Value Letter.
2211 South 47th Street
Phoenix, Arizona 85034
|Index Membership: N/A
Industry: Electronics Wholesale
Full Time Employees: 14,200