E Eltek Ltd.: With Turnaround Completed, This Deep Value High-Tech Manufacturer Is An Intriguing Growth Story

Source of Company Comparison: Selected companies from a list of publicly traded Printed Circuit Board Companies provided by Fintel.io

Data Source: Yahoo Finance (on September 22, 2020) 

ELTK’s Corporate Culture of Success and Excellent Management Team

During my due diligence, I visited ELTK's factory and Nistec's facilities. Given that Mr. Nissan owns a controlling position in ELTK through Nistec Ltd, I wanted to hear his story. I learned that Mr. Yitzhak Nissan is very personable.

Shareholder Friendly Ownership

ELTK has a history of being shareholder-friendly. One example of this is with liquidity and capital resources. Nistec, the majority shareholder of ELTK, owns ELTK debt and provides loans at a Prime + 1.75% rate. Source: SEC 6K filed August 13, 2020 exhibits 1 and 2


Even though investing in a microcap stock is considered highly risky, this is a particular case microcap. With a 50-year business history, six consecutive quarters of GAAP profitability and revenue growth, favorable macroeconomic conditions, world-leading technology, control, and ownership by Nistec, ELTK is at a real competitive advantage.


ELTK is significantly undervalued based on fundamentals and macro-economic factors. ELTK proved it is in the right space, with the right people, right tech, at the right time, and I believe this success will continue.

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Disclosure: I am long ELTK, and I own 5%+ of the Company as filed in schedule 13D with the SEC. Information presented in this article is my own opinion and is for informational purposes only; it ...

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Michael McGauley 2 months ago Author's comment

I'm happy to see so many people found my analysis thorough and insightful. Yes, I'm not a bot.

For a recent 3rd-party analysis, here you go. The article agrees Eltek's fundamentals "have legs."


Terrence Howard 2 months ago Member's comment

Thanks Michael, unfortunately that article is locked to subscribers. Shareholders Unite, any chance you'd be willing to share your thoughts on #ELTK here?

Old Time Investor 2 months ago Member's comment

I agree, this stock is undervalued and friendly to shareholders. Certainly worth a closer look!

Danny McGuire 2 months ago Member's comment

Wow! Another comment from someone that has not done so in 5 years! This time on the bull side! People do your DD and skip the comments section on this site. At least, the articles on the site are worth reading.

Katy Lin 2 months ago Member's comment

Wow, you've acquired quite the stake in this company haven't you?! You must really believe in $ELTK.

Danny McGuire 2 months ago Member's comment

First comment in 5 years! How fake is this? What is going on here? Thank you Currency Trader for making me do more DD on the commenters on this website.

Dick Kaplan 2 months ago Member's comment

Very interesting and convincing, Michael McGauley. Though I do have concerns about possible bias. Do you cover any other stocks? The only articles you seem to have written are about $ELTK.

Danny McGuire 2 months ago Member's comment

The author is sharing his investment thesis and reasoning. It is his sole prerogative to write what he wants and when he wants it. He does not need to cover any other stocks. He is his own man.

Edward Simon 2 months ago Member's comment

Mike, great article. Thanks for the in-depth analysis. As with many Defense related stocks, companies like these can suffer from ups and downs, based on anticipated vs actual business, as well as inefficiencies driven by specific customer specifications. It is a question of management. Hopefully, what you report is true with regards to Eltek. Only time will tell.

Danny McGuire 2 months ago Member's comment

All companies "can suffer from ups and downs, based on anticipated vs actual business." Not a very insightful statement. I have no idea what you are talking about in regards to " inefficiencies driven by specific customer specifications." ELTK is in the niche high end PBC market. Meeting customer specs gives the company margin growth as seen in the past few quarters along with improving customer retention. Questioning the honesty of the author is the worst part of your banal comment. You do realize that the author is a verifiable real person, unlike you.

Currency Trader 2 months ago Member's comment

The author may be a real person, but are you? Who are you exactly? Unlike everyone else on this thread, you have no comments on this entire site, other than this article. It seems you registered specifically to jump to the defense of an author who, one would think you don't even know. Or do you? Perhaps you are the author using a different name? I noticed he did not respond at all.

I actually found the article very convincing but your comments are making me highly suspect

Danny McGuire 2 months ago Member's comment

A person that goes by the username, Currency Trader, is asking me who exactly I am? A user with only two comments that are dated 2 to 5 years ago that now only suddenly appears today on a microcap stock and questions my integrity? I find that laughable and highly suspect.

BTW, I have traded ELTK off and on over the years. I came to the website because there was a new article on ELTK and I did not even know this website existed so I decided to give it a try. I am not the one that attacked the integrity of the author, which could be construed as libellous. It appears that you like going down crank rabbit holes yourself with your other questions. Again, highly suspect.

David M. Green 2 months ago Member's comment

Bullish on $ELTK.

Kurt Benson 2 months ago Member's comment

Very thorough analysis.