01/14/2014 5:00 am EST



In his Contra the Heard Investment Letter, editor Benj Gallander looks at stocks that are out-of-favor in the investment mainstream. Here, he looks at a player in the global supply chain providing packaged electronics for original equipment manufacturers.

Since the heart of the recession, Singapore-based Flextronics (FLEX) has been in major turnaround mode. Sales and net income have been at the high-end of guidance, the latter clicking in at $0.22 this past quarter.

Though revenues have decreased, largely due to the loss of its previous contract with Research in Motion—the maker of BlackBerry devices—the bottom line has remained black on an annual basis.

Once a market darling, it seems hard to imagine that this outfit, that trades around $7.50, once was valued at better than ten times its current price.

Our Initial sell target for the stock is $18.74 per share, and with a perkier economy, this bellwether designer and manufacturer for OEMs could blow by that goal.

Also worth noting is that the enterprise has been on an acquisition kick, digesting over a dozen businesses over the past couple of years.

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