A 32% stock price jump is unusual for the NYSE at the best of times. Such an enthusiastic stock market response to spectacular business results is a record for this stock. Net income has tripled on a 19% sales growth. The management has declared a special dividend for the second March in a row.

Interest in this stock should not be short-term. The company has just bought one of the best known brands in the Retail (Catalog and Mail Order) Industry, but it has more durable reasons to be a top stock pick from the Services Sector. Investors will like the flexibility built into the business model for raising revenues.

The company lets customers choose between brands and private labels. This opens business possibilities with all customer segments in the computer market. The company assembles its own PCs, and markets them along with top brands. It has marketing and distribution infrastructure throughout North America and Europe.

The industrial products business of the company is in a nascent stage. However, it adds considerable value to the stock. Material handling, storage, and other industrial products will not move in the same business cycle as for personal computers. The management can ramp up its industrial business in the future to keep fueling growth. The Inventory Turnover is 9.74 though the company sells more than 100 thousand products and systems. This speaks volumes for management effectiveness.

Overall, the company has a versatile business model. It looks set to build further on the extraordinary Payout Ratio over the last four quarters of over 52 against an industry norm of less than five.

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