Value Investing News

After 3 years and over $35m in losses, Sparton Corp (SPA) took a giant leap forward in 2010, evidence of a strong turnaround by the new management team. The current EV/EBIT ratio is 6.5 - very cheap for a profitable and growing company. Conservatively, the stock should return 50%+ over the next year or two.

• http://www.valueuncovered.com/sparton-corp-spa-turnaround-team-returns-micro-cap-manufacturer-to-profitability (143)