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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: D VanSwol who wrote (7793)	6/26/1999 12:47:00 PM
From: JZGalt	Read Replies (2) of 18928

Dennis, JBL makes custom circuit boards for a variety of large customers. They have design wins and close relationships with downstream customers but that is where the similarities end. The risk in JBL is that they are more oriented toward PC circuit boards than telecommunications circuit boards. Consequently when DELL or Gateway sneezes, JBL catches cold for no good reason and that provides very good buying points for the stock. The reason this stuff doesn't matter is JBL makes money on the volume of PC's sold and not the eventual margins at which they are sold. I have no idea why analysts cannot figure this out. By subcontracting a significant share of custom boards out to JBL, the OEM suppliers are helping their margins even though JBL still makes a nice chunk of change. Typically JBL picks up one or two additional major contracts per quarter. If you read the "Gorilla Game", JBL is one of the Gorilla's in this area. As Tom noted, JBL is one of the best names in the business and now still commands a premium p/e. Companies to compare to JBL are SANM, CLS, DIIG, PLXS, SLR where the general category can be described as independent providers of customized manufacturing services to electronics original equipment manufacturers (OEMs). This is a comparison chart of the group as I see it. exchange2000.com SANM is the name when it comes to telecommunications circuit boards. My best guess is that JBL will float down toward it's 200 day moving average. You can do research on JBL at this page. confirmatoryanalysis.com ---- Dave

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