Flextronics International (FLEX) Message Board

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Technology Stocks : Flextronics International (FLEX)

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To: patroller who wrote (1184)	9/16/1999 10:36:00 AM
From: kolo55	Read Replies (2) of 1422

Looks like Flextronics timed their announcement... ... to come right after the Solectron and Jabil earnings report, hoping they could minimize the dip. They must have known that the news of this dilution would depress the stock price for awhile. This is a massive offering, and I doubt they can do it in a week like the offering they did last fall. So it wouldn't surprise me to see several weeks of weakness here. (This wouldn't bother me, since my trading shares are in JBL right now, and I'd like to get my FLEX trading shares back at some point. My long term low basis taxable share position is still intact.) Over the long haul, this looks like Marks is making an aggressive bid to push up toward CLS, let alone SLR and SCI. With this much money, FLEX, could add new business of over $2B annually in the next two years. Add this to their internally funded growth of about 35%, and we could see $6.5B to $7B run rate in 24 months. Of course, the EPS won't grow as fast as revenues and operating income because of the increased shares outstanding. Paul

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