A Michigan Company GNTX

Michigan playing Ohio State and thought I would do a study between time outs. This is a slow grower but has some upside potential in a long term portfolio. A Michigan company. Ugh. Michigan lost in double overtime. 

Gentex Corporation GNTX

Here is a Michigan company that makes America great and is solid "yeses" in the Better Investing universe with conservative estimates. They have a footprint in transportation, fire protection, defense and traffic safety. 
Here is a yahoo description of the company.

Gentex Corporation designs, develops, manufactures, and markets automatic-dimming rearview mirrors and electronics for the automotive industry; dimmable aircraft windows for the aviation industry; and commercial smoke alarms and signaling devices for the fire protection industry worldwide. It offers automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and interior and exterior non-automatic-dimming rearview mirrors with electronic features for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, tier one automotive mirror manufacturers, and various aftermarket and accessory customers. The company also provides photoelectric smoke detectors and alarms, audible and visual signaling alarms, electrochemical carbon monoxide detectors and alarms, and bells and speakers for use in fire detection systems in office buildings, hotels, and other commercial and residential establishments. Gentex Corporation sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. The company was founded in 1974 and is headquartered in Zeeland, Michigan.

Positive Indicators:

1. Sales growth last five years 11%. It is a small/mid company with just over 1Billion in sales.
2. Pre-tax profit on sales was 27% and easily leads the industry.
3. Earned on equity though is 17.6% which is just average for the industry.
4. Historic earnings per share is greater than sales but not too drastic with 19.7%.
5. Dividend has gone from .24 to .36 over past five years but not more than 1/2 of earnings per share of $1.21.
6. Upside is 3.6 to 1.
7. This puts price in high of buy zone. Probably should wait for total market pullback before buying this. 
8. This is a President Trump stock. It will move with auto industry and defense spending.

Negative Indicators:

1. Market as a whole is due a pullback.
2. Insiders only have 3% ownership indicticating a bearish mood. 
3. It is at a 52 week high. 


We will buy 100 shares at yesterday's price. 

Bought 100 GNTX (a Nasdaq stock) @ $18.49. Cost basis $1,856.

PORTFOLIO TOTALS

GNTX cost $1,856.00 current $$1,849.00 .... -7.00
BNS paid $5,408 value $5,394 = -12.00
TSCO paid $6,667 value $7,461. = + 794.00
KMX paid $5,444 value $5,838= + 394.00
LCI paid $3,238 value $2,290 = - 948.00
JLL paid $9,699 value $10,019 = + 320.00

Paper gain since September of $539 or 1.67%. We will receive dividends and can absorb any pullback. Long term investments. Timers would sell some gainers but that is a poor strategy. We have good companies with good fundamentals so we forget fluxuations (volatility). Investing is a mindset and conviction. LCI is a mystery but still solid mathematically. We will see.