Top Picks for 2010: Servotronics (SVT)

Vass continues, "Servotronics engages in designing, manufacturing, and marketing advanced technology products in the United States and internationally.

"Its Advanced Technology Group markets various servo-control components, which convert an electrical current into a mechanical force or movement and other related products.

"The company's Consumer Products Group sells various cutlery products, including kitchen knives, such as steak, carving, bread, butcher, and paring knives for household use, as well as for use in restaurants and institutions.

"Our selection of Servotronics is based upon our patented methodology for investigating technology stock. We developed a theory of technological innovation using Leontief's theory about input output economics that helps us predict technological investment opportunities.

"Our theory helps us conduct our first screening of the universe of stocks in order for us to narrow the selection to companies that are in nine high technology industrial clusters.

"Next, we apply rigorous standards to those stocks based upon a value approach to investing that shares many elements in common with the Graham and Dodd approach to investment selection.

"We first added the stock to our portfolio last April, but note that Servotronics continues to meet all the selection criteria needed for our strategy. We continue to recommend purchase under $9 per share."

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