"Margin of Safety Value Driven Ideas" (04/22/13) Update Continued for MFLX & FMAO

MFLX:Multi-Fineline Electronix, Inc. “provides  printed circuit and component assembly solutions to the electronics industry. The Company's services include design and application engineering, prototyping and high-volume manufacturing, and turnkey component assembly and testing”

MFLX value has been enhanced with a -45% price change over 52 weeks near a 3 year low. It now trades at a historical low valuation based on P/B. P/B is .79 near 10 year low of .80 versus 5 year average of 1.30, P/S is .40 versus 5 year average of .70. and at 3 year low of .40.  Margins have been on the decline but margins mean revert in this industry

Strong financial position and with outsized industry under performance makes MFLX a micro cap value stock that is likely to mean revert. The most recently reported quarter 12/31/12 revenue increased by 21% to 289.7M.

MFLX Price on post date 04/22/13 = $14.02

Market Cap:357.87M ; Enterprise Value:256.44M

Price/Sales 0.40; Price/Book:0.77

Enterprise Value/Revenue:0.30 ; Enterprise Value/EBITDA:3.17

Qtrly Revenue Growth:21.00% ; Total Cash Per Share:3.90

52-Week Change:-44.73% ; Held by Insiders: 63.22%    

 

 

02/04/16: Acquired for $23.95 per share

MFLEX  Enters Into Definitive Merger Agreement To Be Acquired By Suzhou DongshanPrecision Manufacturing Co., Ltd. For $23.95 Per Share

FMAO: FMAO - Farmers Merchants Bancorp is a regional bank founded in 1897 and based in Archbold Ohio. This OTCBB listed bank stock provides various financial services to individual and small businesses in northwest Ohio and northeast Indiana. It has 19 offices located in the Fulton, Williams, Henry, Defiance, Lucas, and Wood counties in Ohio; and 3 offices in DeKalb and Steuben counties in Indiana.

This conservative stock has slowly moved higher but is worth a look. Recognize that it’s trading close to 3 year highs for price and price to sales. It still trades a nice discount to book value. Current dividend yield is 3.80%.

FMAO: Price on 04/22/13 = $22.25 up from the previous day close of $21.55

Market Cap:103.53M; Enterprise Value:124.93M

Trailing P/E:10.68

Price/Sales: 2.78 ; Price/Book:0.94 ; Enterprise Value/Revenue:3.35

Qtrly Revenue Growth:2.20% ; 52-Week Change:3.97%   

The Bank owns all of its office locations, with the exception of Angola, Indiana. They own a total of 17 properties all on the books below fair market value. Above industry averages for ROA, Net Margins, ROE, Debt to Equity

Price on 10/15/18: $43.00