Gamble of the week: A classic cyclical stock

Place your bets on the global recovery with this electronic components company, says Phil Oakley.

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 moreprofits, bigger dividends and a rising share price.

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Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.