Gamble of the week: A classic cyclical stock

This is a classic cyclical stock. The company distributes electronic components that are bought by design engineers across the world to go into pretty much any product that relies on electronic technology.

As a result, this stock’s fortunes are closely tied to the ups and downs of the world economy and the pace of innovation in new electronic products. The theory goes that as the economy picks up, more customers should be buying components from it. This in turn means more profits, bigger dividends and a rising share price.

On top of this, it should also benefit from the ongoing pressure [...]

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