FLEX Moving into Breakout Mode

Flextronics a ‘buy’ despite higher-than-normal risk?

FBN’s Charles Payne, A&G Capital CIO Hilary Kramer, Fulcrum Securities Chief Strategist Rob Morgan and Penn Financial Group founder Matt McCall on the outlook for Flextronics International.

Let’s talk about Flextronics International (NASDAQ:FLEX).

This used to be one of these real hot go get 'em stocks during the early Internet, telecom days. It came down to earth a little bit. In fact, before last week’s earnings rally, it was actually down 5% for the year.

We saw a huge reversal on the fiscal third quarter results. The company beat on top and bottom line. I like the guidance. They did buy back a fair amount of stock like anyone else, but I still think this is a huge value play.

Back in 2000, it was about a $41 stock. Breaking out here, I think it could move to $15 -- that will be a huge percentage gain. I like it. It's a little higher than normal risk, so I will warn on that.DISCLOSURES