AVX - (recommended to subscribers on 8/10/03 at $10.08)

    On July 25th AVX Corporation, a manufacturer and supplier of a broad line of electronic components, reported fiscal 2004 1st quarter revenue of $256.7 million. Revenue was down 13% from the $294.9 reported in the 1st quarter of the prior year and down 2% sequentially. Net loss for the quarter was $15.9 million or 9 cents a share. The loss included restructuring charges of $2.8 million related to head count reductions. The company expects to incur future charges related to additional head count reductions and facility reorganizations. These actions help to reduce costs and are intended to bring them more in line with the company's sales which have slowed due to industry wide soft demand. AVX is also in the process of moving some of it's manufacturing over to China which is hurting profits in the short run but will lower costs longer term. 

     AVX has cash, short and long term investments worth $683 million or $3.93 per share. The company has an insignificant $3.5 million of debt. Book value is $8.10 per share and the stock trades at 1.6x sales. 

     Though AVX lost $15.9 million last quarter the company is taking steps to reduce costs and streamline it's operations. Also compare the loss to the company's overall sales and compare it to AVX's net asset value which is $1.4 billion. 

1/6/04 - SOLD AT $17.44 FOR A GAIN OF 73%.
 

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