Park Electochemical Supplies Stuff To Make Chips

This week I'm seeking a prestigious and long-term dividend-paying stock from the technology business sector. 

That technology sector has nineteen industries ranging from communication equipment, computers, consumer electronics, and contract manufacturing, to health and information technology and services to internet, scientific instruments, software, solar and all such technological marvels. 

Today I'm reviewing a small-cap semiconductor equipment and materials company, named Park Electrochemical Corporation. Its trading ticker symbol is PKE

Park Electrochemical Corp. develops, manufactures, markets and sells digital and radio frequency microwave printed circuit material products for the telecommunications, internet infrastructure, high-end computing, and military/ aerospace markets.

The company's advanced electronics materials are used to fabricate complex multilayer printed circuit boards and other electronic interconnect systems.

It markets and sells its electronics materials to independent printed circuit board fabricators, electronic manufacturing service companies, and electronic contract manufacturers, as well as electronic original equipment manufacturers in the computer, networking, telecommunications, wireless communications, aerospace, military, instrumentation, and automotive industries.

The company has operations in North America, Europe, and Asia. 

Park Electrochemical Corp. was founded in 1954 and is headquartered in Melville, New York.

I use three key data points to gauge the value of any dividend equity or fund like Park Electrochemical Corp. (PKE): 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys will finally unlock an equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

PKE Price

Park's price per share was $18.04 at yesterday's market close. A year ago its price was $18.87 for a price drop of $0.83 per share for the year, that's a 4.4% loss. 

Assuming Park's price will trade in the range of $14 to $24 next year, Park's recent $18.04 price could improve by $4.00 and grow to $22.04 by early-November, 2019. 

PKE Dividends

Park's most recent quarterly dividend was $0.10 declared September 12th and payable November 6th. 

At this most recent $0.10 quarterly rate, Park's annual dividend equals $0.40 yielding 2.2% at yesterday's closing $18.04 price.

Gains For PKE?

Adding the $0.40 estimated annual dividend to my estimated $4.00 annual price upside for Park Electrochemical Corp. (PKE) makes a $4.40 potential gross annual per share gain, which will be reduced by costs to trade the shares.  

A little under $1,000.00 invested today at the $18.04 recent price buys 55 Park Electrochemical Corp. (PKE) shares. 

A $10 broker fee paid half at purchase and half at sale costs $0.18 per share, subtracting that $0.18 brokerage cost from the estimated $4.40 gross annual gain leaves a net gain of $4.22 X 55 shares = $232.10 for a 23% net gain on a $992.20 investment.

Therefore, Park Electrochemical Corp. whose trading ticker symbol is PKE, now shows a possible 23% net gain including a 2.2% dividend yield. 

One broker covers this stock:

She thinks Park will "outperform" its peers.

Her consensus number is 2.0 or "outperform".

That broker's price target is $4 higher than the $22.04 upside I suggested as possible.

Therefore, you may look at the speculative numbers this way, Park Electrochemical Corp., whose trading ticker symbol is PKE, has made money, is making money, and could net a 20% to 40% net annual gain including a 2.2% dividend yield. 

It could be more, it could be less. 

The above speculation is based on past year performance. The actual results remain to be seen to determine if Park Electrochemical Corp. (PKE) is worth your time and money.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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