Flextronics International (FLEX) Message Board

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Technology Stocks : Flextronics International (FLEX)

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To: patroller who wrote (1176)	9/4/1999 11:46:00 AM
From: rich evans	Read Replies (1) of 1422

Whoa Nelly, Patroller. 50% growth could mean about 15 billion in sales at 3% net equals 450 mill , divided by about 75 mill shares say equals $6/ share times 33 PE equals $200/ share. But I'll take that. No sense in being greedy. But noone on the JBL thread responded to my theory that as these companies become that big their business margins,models will tend to merge and valuation merge also. And another question is what happens in an economic slowdown? Jim Savage in the Barron's article said these companies would be hit hard. But he also said just the opposite has occured so far by more outsourcing and the risk is spread. And with so much business, the smaller ECMs especially for the high mix business could do well where they are just as efficient, and their PEs are half of FLEX right now. Maybe it is time to buy PLXS with its high engineering/design . I bought JBL however after my musing last week on JBL thread. Actually a economic slowdown with lower prices would be welcome to me as it would create hopefully a buying opportunity under the Buffett theory of shopping when things are on sale. Rich

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