4-Star Stocks Poised to Pop: Nam Tai Electronics

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronics-manufacturing specialist Nam Tai Electronics (NYSE: NTE  ) has earned a respected four-star ranking.

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

Nam Tai facts

   
Headquarters (Founded) Shenzhen, China (1975)
Market Cap $269 million
Industry Electronic manufacturing services
Trailing-12-Month Revenue $534.4 million
Management Founder/Chairman/CFO Ming Kown Koo
CEO Colin Yeoh
Return on Equity (Average, Past 3 Years) 4.6%
Cash/Debt $228.07 million / $0
Dividend Yield 3.3%
Competitors Flextronics International (Nasdaq: FLEX  )
Jabil Circuit (NYSE: JBL  )
Sanmina-SCI (Nasdaq: SANM  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 816 members who have rated Nam Tai believe the stock will outperform the S&P 500 going forward. These bulls include bombaseed and easyeta.

Earlier this week, bombaseed tapped Nam Tai as a particularly timely pick:

Seemed to be turning a corner, but recent Japan earthquake has triggered big share price weakness of late. Good entry point for a cash-rich, debt-free, shareholder-friendly, dividend-paying company. What's not to like?

In fact, Nam Tai currently boasts $228 million in cash on its balance sheet, with no debt. Meanwhile, listed rivals Flextronics, Jabil, and Sanmina sport debt-to-equity ratios of 0.97, 0.68, and 1.82, respectively.

CAPS member easyeta expands on Nam Tai's outperform case:

Excellent Cash Position ($5.09 per share) limits risk; Stock is trading well under Book Value despite being profitable. The risk (and perhaps opportunity) has [arisen] because of a possible supply side interruption from Japanese earthquake(s). Nam Tai also pays a dividend of $0.20 per share, which adds value to an already great buy.

What do you think of Nam Tai, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!  

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Nam Tai is a Motley Fool Global Gains pick, and the Fool owns shares of it. Try any of our Foolish newsletter services free for 30 days.

We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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