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Why Client Set-Back Will Not Detract from Multi-Fineline Electronix Inc. (MFLX) Inherent Stock Value

The largest and historically most consistent corporations can commit blunders. That is why no small capital entity should develop excessive dependence on any of its larger peers. This seems to be the primary lesson learnt by a small capital member of the Electronic Instrumentation & Controls Industry from Anaheim, CA.

The company is a pioneer of flexible circuits. Such electronic wizardry contributes enormous values to consumer electronic devices such as mobile handsets. The company focused on meeting the needs of a corporate giant, which in turn had an uncharacteristic setback with one of its model launches. This dampened cash flows from flexible circuits, driving them well below potentials and forecasts.

Fortunately, the company has been nimble and quickly developed a slew of new clients. Revenues have grown by 45% during the Most Recent Quarter, beating estimates by professional analysts. The stock price, as might be expected in the circumstances, has climbed 12% very quickly.

The technological moat of flexible circuits has played an important role in the smart recovery of the business and the stock. However, it is also due to rapid management response and the crafting of resilient strategy. These factors assure stock investors of likely sustained business progress.

Cellular handsets are popular, but not the only application for flexible circuits. Higher value-addition is possible in new medical devices. The management has begun to address opportunities in this futuristic segment, which could take the business to a whole new plane.

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