Tyro, The growth numbers you mention are, of course, good numbers. However, I'm not sure they apply to this company. First of all they are in a somewhat ill-defined industry. Their major companies in the past have been disc drive manufacturers a somewhat erratic industry. I'm not sure what the total available market is for flex, but I don't think it is that large. Also, they do have some fairly active competition. As far as the Hana group goes they know how to make money from what I can determine. This doesn't necessarily help AFLX since they are in effect a customer of Hana.Further,I was not as impressed as apparently the market was in their announced line of credit. It just demonstrates their need for additional capital spending in their relatively low margin industry. Finally, one last observation, when I first got interested in this investment I didn't know any thing of the management in the company. Over the course of my investigation I was uneasy of the direction of the company. I feel they made an irrational decision in their UK purchase, which was later indicated. I have noted their have, over time, been a number of mangement changes. Other than those points I really have nothing more definite.
Regards
FOEY |
