Why Power-One Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, power supply products manufacturer Power-One (UNKNOWN: PWER.DL.DL  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Power-One and see what CAPS investors are saying about the stock right now.

Power-One facts

 

 

Headquarters (founded)

Camarillo, Calif. (1973)

Market Cap

$525.0 million

Industry

Electronic components

Trailing-12-Month Revenue

$1.0 billion

Management

CEO Richard Thompson (since 2008)

CFO Gary Larsen (since 2010)

Return on Equity (average, past 3 years)

38.4%

Cash/Debt

$265.8 million/$0

Competitors

Delta Electronics

Elec & Eltek International

Emerson Electric (NYSE: EMR  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 644 members who have rated Power-One believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, cgtombstone, succinctly summed up the Power-One bull case for our community:

Everything in the world runs on power and the type of power is never right, you AC when you need DC, DC when you need AC, high voltage when you need low, etc. Power-One makes the most efficient power converters out there, it's not just an "alt energy" play, they can save power on every device, every server farm, every house, (again) etc. Steep discount as people only see the solar side, nowhere to go but up.

If you want market-beating returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Power-One may not be your top choice.

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Read/Post Comments (3) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 11, 2013, at 8:26 PM, bestwaytoriches wrote:

    Brian, you've got to be kidding yourself PWER is a strong sell the next several quarter PWER is scheduled to lose money and PWER normally misses on more loses than projected. PWER soon will report they have burned through a good portion of cash on there balance sheet. Most fund managers will be dumping PWER for poor performance and priced under $5. Next all of the fool caps With a buy will realize PWER only direction is down and Sell. Not even PWER is confident with there business announcing a 3yr stock buy back that's not been started and why would you buy at the high Pwer is waiting for the new lows to hit.The only chance you have is wait for another fake upgrade and sell on the pop. As Europe goes so goes PWER DOWN.

    PWER is a company with reduced sales and larger loses and burning through cash.

    Recent layoff will create severance packages.

  • Report this Comment On March 11, 2013, at 8:49 PM, bestwaytoriches wrote:

    Brian,

    Forgot to mentions the last 5 short report have climbed in short activity. I bet the smart ones know pwer is about to miss big and fall off the cliff.

  • Report this Comment On March 19, 2013, at 12:22 AM, MJpwer wrote:

    If you check the analyst forecast, PWER is only predicted to "lose money" in the next quarter - as expected due to solar company reduced spending. They have no debt, with cash equal to half of their current share price and are the #2 provider in the world for inverter/converter products.

    Short term they may be a moderate bet but trust that long term they will move to $10+ and provide real returns for steady investors. Not every play - as I'm guessing your short-like post intends, should be a 2-3 month horizon. My bet is that this is more of a short-squeeze play than a true short to make $$$.

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