“We deploy a patented stock selection method that uncovers technology stocks in the nine technology value chains in America,” said Thomas Vass, the investment advisor to the newsletter.
After a company meets the TSA technology screening criteria, elements of the Graham and Dodd method are used to evaluate the financial strength of the company.
“We look for consistency over a three year period of time in several financial indicators for companies that are in our watch universe of high technology companies,” Vass explained. “We want to find indicators that senior management is consistent in making good use of corporate resources.”
Among the most important indicators of management competency as used by TSA are:
· Consistent top line revenue increases
· Consistent payment of a dividend
· Consistent net revenue increases
· Stable or increasing operational cash flows
Both new companies met all of the TSA criteria as well managed technology companies and both companies are members of the computer and electronic equipment technology value chain.*
Spectrum Control, Inc., located in Fairview, Pennsylvania, designs, manufactures, and sells electronic control products and systems used to condition, regulate, transmit, receive, or govern electronic performance.
LaBarge, Inc., of St. Louis, provides electronic systems solutions, including the manufacturing, engineering, and design of interconnect systems, circuit card assemblies, and high-level assemblies for its customers' specialized applications.
“Our patented stock selection method discovers companies in the value chains that contribute to technological innovation,”
*Other members of the Computer and electronic equipment technology value chain include:
Computer Storage Device Mfg., Other Electronic Equipment Mfg., Computer Peripheral Equipment Mfg.,
Broadcast & Wireless Communications Equipment, Electricity & Signal Testing Instruments, Search Detection & Navigation Instruments, Electronic Computer Mfg., Telephone Apparatus Mfg., Semiconductors & Related Device Mfg..
