Annnnnd I'm going to cheat again and link to another TMF post:
http://boards.fool.co.uk/share-idea-ekt-12236790.aspx?sort=whole#12261522
The share just seems fundamentally very mispriced. I see this as both a value and a GARP play - even if the growth doesn't materialise the share is cheap on a current PER of a bit over 6. I like the idea of having a number of small businesses each with their own niche engineering speciality - it should allow for decent margins and I'm sold on the 'story' of the potential synergy from having a number of shared functions (marketing, corporate etc) eventually benefitting the bottom line. I'm also a fan of the move to Cambridge (The so-called 'Silicon Fen') as I can see the potential of a number of smart engineers trying to devise potential new smash hit products whilst the current ones expand in the mean time - there's multiple sources of potential growth.
Another interesting source of info on EKT comes from this blog:
http://elektronplc.blogspot.com/
From someone who is clearly an insider or is very close to the company. Some interesting info especially on the new acquisition which looks like an absolute steal! The effective P/E after cash appears to be in the sub-3 range which is amazing. The chairman appears to be a professional investor himself and has significant skin in the game so has every incentive to run the company well.
A very simple investment thesis but I can see the growth story and the price is so low as to be in value territory anyway - a re-rating and growth could create a big multibagger, apparently the chairman sees 'FTSE 250' territory eventually so at least he's ambitious!
Long @ 32.3775p
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