Electronics and computer products distributor Arrow Electronics Inc. said Tuesday its board of directors authorized the repurchase of another $100 million of common stock.

The buyback is in addition to the $100 million of common stock authorized for repurchase in February 2006.

The company also recently raised its fourth-quarter profit guidance.

The stock trades for 7.5x cash flow.

electronics will grow forever!

Arrow Electronics (ARW) was downgraded from Buy to Neutral, Merrill Lynch said. Stock has rallied lately, and there could be some excess inventory in the channel.

Know company from working for them

Technology stocks that trade at a low PE but have technical strength will find their way to this recommendation list (ie. Arris Group ARRS). Arrow Electronics trades at 13 PE, compared its competitor Avnet’s 19.3PE. Despite, the volatility of technology semiconductor distributors continue to have good results. This is because their margins are more sustainable and it might be suggesting that semiconductor equipment market might be rebounding. Arrow Electronics is growing quickly in the Asian and European markets through acquisitions. I think the valuation gap between Avnet and Arrow will narrow, and I would buy the stock before it reports on Monday.

DCF above price by more than 30%

Black 33.96

"The multiple could expand to 15 if they deliver the numbers. That could take the stock to 18-19."