Flextronics International (FLEX) Message Board

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Technology Stocks : Flextronics International (FLEX)

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To: MGV who wrote (1141)	8/6/1999 12:53:00 PM
From: rich evans	Read Replies (1) of 1422

The market's valuations can differ from what one might expect as beauty is in the eye of the beholder and not always so logical. That was the point of my quote from Keynes and the difficulty in paired trades. SCI had a great quarter but stock took a hit today. The NORTEL plant acquisition will be over a billion dollars in new revenue in addition to the internal growth. B/B is all time high at 1.23 and they have scores of new customers and programs. Margins are improving to operating of .0386 and I think the tax rate should improve with the Hungary/ China operations giving them more flexibiltiy . They are becoming not just a PC box builder but will be doing much more telecom and be much more balanced. Great balance sheet with more acquisitions on the way. Could be 20% plus growth internally plus the acquisitons. So what does the market do today but gives it a hit because of the next quarter may be flat do to Europe seasonal slowdown. I think company forecasts much to conservative. Kind of like Microsoft but we shall see. They hit the high estimate of 60 cents a share this quarter with 100 million revs over estimates from Q3 CC. Logically with a 2.50 /share this year estimate, you would think the stock would go up but it goes down today.Also the PE and PSR are way below its peers especially SLR but it can't shake its old image as a PC boxbuilder. Such is the nature of a beauty contest, I guess. The solution IMO is to kiss them all like Zorba the Greek. Become a polygamist I guess. Patroller is a bigamist with is JAAA_Flex. I guess Paul was trying to pick the prettiest with his paired trade but market vote on beauty right now is different but I know the feeling since I thought CPQ was much better looking then HWP at the beginning of the year. Ouch. I am looking at BHE right now quite seriously to add. Rich Rich

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