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Brendan Byrnes: Hey Fools, I'm Brendan Byrnes, joined today by Andrew Tonner, our tech and telecom Analyst.
Andrew, let's talk about maybe another way to play the iPad boom from Apple. What could that be?
Andrew: It could be Nam Tai Electronics, potentially. This is a company that is extremely popular with tech investors today. It was one of the better-performing tech stocks, kind of under the radar. It's a $630 million market cap company, so not very well known, but it had a huge 2012.
The stock itself was up over 150%, basically on the storyline that they had one major new customer acquisition, and that "mum's the word" on it. Of course, when you hear about a big tech name that they're contracting manufacturing services from, that's demanding secrecy, you obviously have to start to think Apple.
But at the same time, regardless of that, it's a relatively cheap stock, and the financial tailwinds from that recognition from that first key customer could really still benefit the company in 2013.
Last year we saw around 60% revenue growth, around 116% profit growth for the company, but now they're laying the foundation for continued success as well. Last year they also used some of the proceeds from this new customer acquisition to acquire around 470,000 feet that they're going to turn into continued manufacturing space as well.
You see this boom, and the expertise that some of these Chinese manufacturers have. Tim Cook recently said, as well, when asked why they couldn't bring some of these jobs back to America, he says, "Well, some of these companies overseas really have the expertise now."
This is really a trend that's not going to be reversed, very likely. This company does have a long runway, up 150%, again. The stock isn't nearly as cheap as it once was, but at the same time it seems like the kind of company that's positioning itself for continued success. I'm not going to say it's going to double again, but at the same time I do like its prospects, going forward.
I think it's an under-the-radar way to potentially play an Apple, especially the tablet boom, regardless of Apple or not.
Brendan: Absolutely. Definitely an under-the-radar pick. Thank you for bringing that to our attention, Andrew. More analysis on Fool.com, so check that out.