NUHC - (recommended to subscribers on 5/25/03 at $5.50)

     On May 16th Nu Horizons Electronics Corporation, a distributor of electronic semiconductor components, reported fiscal 4th quarter revenue of $70.9 million which was up from $64 million the year before. Net loss was $1.8 million or 11 cents a share as the company has chosen to invest in the future instead of contracting as many other companies are doing. The company said their book to bill ratio was greater than 1. The stock trades at a very low .3x sales and the company carries no debt. They have $31.3 million in cash which comes out to $1.80 per share. Book value is $7.12 per share. 

     Looking at the weekly chart above you can see a Relative Strength Index (RSI) divergence. In October 2002 the stock made a low. Then recently it made a lower low. However the RSI did not make a lower low. This is a bullish technical divergence. Looking at the second chart below you can see that NUHC broke through the top of it's recent trading range. The stock hasn't closed at this level since January. Though I posted 2 charts here, it is the valuation that is most compelling. 

SOLD 1/6/04 - SOLD AT $10.40 WHICH GIVES YOU A GAIN OF 89%.

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