Electronic Contract Manufacture (ECM) Sector Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: MGV who wrote (2455)	10/31/2000 1:04:51 PM
From: rich evans	Read Replies (2) of 2542

Anyone have any thoughts on the big deal announced by SLR today buying NatSteel Electronics.? Seems worrysome to me. I listened to the webcast on SLR site. Nat Steel says they are 70% in PCs with most of that of that motherboards and the rest 15% finish. They are also at 85-90% capacity with 2 mill in sq feet located all over in Hungary,Mexico, Singapore Malaysia, China, and an optical plant for NEC in Oregon. Apple is a 40% customer with HWP next then CPQ, IBM and then USR. Transaction involves about 2 bill in good will.Not sure but think sales of NatSTeel about 5 bill so the PSR is about .5 maybe. But SLR has to put out a lot of shares to finance 2.4 bill which could be 60 mill in shares and converts I guess depending on premium. Anyway why the deal just to add a highvolume manufacturer? What is the strategy? and how effect future growth? Not really getting any excess capacity to solve the constraints problem, I guess they are getting geography especially Asia. Still it seems sit could lower the PSR and PE valuation of SLR going forward. Rich

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next