Electronic Contract Manufacture (ECM) Sector Message Board

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Strategies & Market Trends : Electronic Contract Manufacture (ECM) Sector

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To: jim heger who wrote (2207)	1/25/2000 2:36:00 PM
From: rich evans	of 2542

Yes, an interesting call for PLXS. There strategy of concentrating on engineering has turned out well and I remember Marks of FLEX saying the design group of DIIG was one of the main reasons DIIG was attractive. They have a good balance sheet to finance the Mexican acquisition and East coast and Europe expansion. SCI reports tomorrow. They announced a 800 million shelf offering today so must have big plans as their net debt position was 0 as I recall. Our "hero" Keith Dunne upgraded BHE today and indicated they are turning around with two 200 mill orders, digesting AVEX, and estimating cash earnings of $1.60 for 2000. Also news on BHE partnering with a med group and microsoft today on a dot com venture. In conclusion I think these ECM laggards and second tier ECMS can be a good investment especially with the 40 PE for the top tier. At tthat PE of 40, I think growth will be based on revs and earnings not PE expansion so the second tiers like BHE have equal appreciation potential based on their much lower PEs. PLXS is a good example of what can happen. FWIW Rich

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