Waiting for the big Kahuna 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 : Waiting for the big Kahuna

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: bobby beara who wrote (1906)	7/4/1997 12:17:00 AM
From: mozek	of 94695

Hi Guys, I wouldn't recommend shorting JBIL, but if you can sell short enough rather than use puts, I'll use it as a buying opportunity. JBIL is the cream of the crop in circuit board outsourcing and manufacturing. They've been unable to fill demand and are using their new manufacturing space as quickly as they can expand. Internally, their employee turnover is incredibly low (2-3%), and they've consistently grown earnings at about 100% during '94, '95, and '96. JBIL's CEO has said that they fully expect to earn $4-4.25 next year, and they've been delivering so far. They're currently at about PE 34.5 for this year's earnings which are estimated at $2.69. Presstek is a company with a PE over 150 and nowhere near the actual growth rate of JBIL in revenues. Their backlog can barely be filled for this year, and it wouldn't improve their bottom line nearly enough to justify their PE. They seem to be a deserving short. I can always be wrong, but JBIL looks like a good long to me. So did DELL in 1990 before it was a 100 bagger. Good luck, Mike

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next