Insiders have been snapping up shares of
(MOD - Get Report)
, which makes heat management products. Sadly for insiders, shares keep falling to fresh lows.
Investors have grown spooked that Modine has considerable exposure to Europe, and fear that a continent-wide economic meltdown will crimp results. That would be a shame because management has embarked on a series of cost-cutting moves that would have set the stage for sharply rising EPS.
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Analysts have been trimming their profit forecasts, but still expect EPS to rise by more than 50% in fiscal (March) 2013 to around $1.15 a share. Let's assume that the European economic crisis deepens and Modine only earns around 90 cents a share. Even in that context, shares are quite a bargain trading below $7.
Shares also trade at a 5% discount to tangible book value, highlighting further downside support for this beaten-down stock.
, a retailer of menswear for the "big and tall" crowd, has surely felt the effects of a slow economy. Sales growth has been anemic, blunting major gains management had undertaken to boost gross and operating profit margins.
As a result, Casual Male is likely to earn around 25 cents to 30 cents a share in both fiscal (January) 2013 and 2014. Shares look neither overly pricey nor cheap, trading around 10 times that figure. But if the economy improves, the profit outlook could prove to be quite conservative.
To show you how undervalued this stock is, check out the price/sales ratio. Casual Male generates more than $400 million in annual sales, but the company is valued at just $140 million. That valuation was too tempting for Chairman Seymour Holtzman to ignore. Along with company director Mitch Presser, Holtzman has been consistently buying stock for much of the past six months.
(FSL - Get Report)
was the chip division of Motorola that was taken private five year ago (for $17.6 billion) and then brought public again in the summer of 2011. Shares initially traded up near the $20 mark, but can be had for around $11 these days. That's the price at which a company director recently bought 40,000 shares. Freescale makes embedded chips that go into a range of applications such as automotive electronics, wireless transmission devices and consumer appliances.