Confident tech stock speeds out of the slow lane

Shares in this car parts supplier have been battered over global recession fears. But there's plenty of scope for a recovery, says Paul Hill. Buy while it's cheap.

Shares of automotive components supplier TT Electronics have crashed by 25% since March, owing to fears over the US recovery, a recession in Europe and China's slowing economy. Revenues were 3% lower than this time last year (£271.2m at the halfway stage), leading to a raft of broker downgrades. Yet I think the stock should still motor.

About 38% of sales are of parts such as accelerator pedal sensors to car manufacturers BMW, Daimler and VW. Here, higher sales of premium vehicles in America, China and India should help offset anaemic volumes in western Europe. Its more advanced products are increasingly being used in sectors like industrial, defence, power and healthcare.

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.