Systemax (NYSE: SYX) is a direct marketer of brand name and private label computers, DVDs, TVs, cell phones and related products in North America and Europe. Among the featured items are devices from Intel (NASDAQ: INTC), Hewlett-Packard (NYSE: HPQ) and Nokia (NYSE: NOK). The company also assembles its own PCs and sells then under the Systemax and Ultra brands. An Industrial Products unit carries various material handling equipment, storage equipment and consumable industrial items. A Hosted Software segment markets Web-based applications that help companies manage customers across multiple sales channels. The firm offers over 100,000 items, through nearly 20 catalogs and a dozen Internet sites.

Systemax pleased investors earlier in the month, when it announced Q1 EPS of 52 cents and revenues of $725 million (5/8). Those totals topped year earlier figures by 41 percent and seven percent, respectively. Two sessions later (5/12), management announced a two million share buyback.

SYX shares popped on the news and have since been consolidating the move in a bullish "flag" pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

The brokerage community recommends the issue with one "buy". The SYX P/E ratio (9.81), Price to Sales ratio (0.25), Price to Book ratio (2.18), Price to Cash Flow ratio (8.50), Price to Free Cash Flow ratio (9.92), EPS Growth rate (40.54%), Return on Assets (11.03%), Return on Investment (24.33%) and Return on Equity (24.82%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 35% of the outstanding shares. Over the past 52 weeks, the stock has traded between $9.01 and $25.27. A stop-loss of $16.70 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.