TE Connectivity Ltd. (NYSE:TEL)

Grimsooth (90.98) Submitted: 9/2/2010 3:16:38 PM : Start Price: $24.82 TEL Score: +6.36

The chief fear among all the analysts is that their business is cyclical, much of the market believes this is going to be a down cycle which has provided a buying opportunity. It's Debt to equity is low (0.36) and keeps plenty of cash on hand to deal with short term hickups. With a Gross margin of 36.1% and a net profit margin 10.7% it's likely the exposure to the Auto industry and the "cyclical nature" which has suppressed the price. Beyond all this, it has a pleasant dividend.Nice price to Cash flow, nice price to projected earnings, nice P/E, appropriate Price to book, but with lower earnings & sales growth than competitors.The Graph looks pretty good: volume peaked with the sell offs and is now down in the trough, however volume is also down with positive movement. While there are still more up days then down, the down days have higher volume making the up days just barely win. Especially with the highlight of the Motley Fool article today, momentum could easily pick up. ~24.82 would probably be a great price, and it's currently trading for 25.5. A minimum expected value would be ~27 for the coming year, but possibly into the 30s.Revenue was down in 2009, but that's to be expected for this sort of company. Despite that the balance sheet remained strong, and they've been retiring their debt and doing share buy backs. They recently inked the acquisition of ADC Telecommunications Inc which was doing pretty well itself and should help offset equipment costs and consolidate business.All in all I think there is a relative discount here, I like the telecommunications/connectivity play and the fact that they are a little diversified themselves in that field. While they lack the super sexiness of advanced Fiber, they are swimming in the accessible beauty of connectivity infrastructure which includes fiber - except the stuff they provide is in use right now. Just keep in mind the volatility.