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Technology Stocks : Jabil Circuit (JBL)
JBL 208.63-3.0%12:01 PM EST

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To: Asymmetric who wrote (5954)2/14/2002 10:42:45 AM
From: WTMHouston  Read Replies (1) of 6317
 
<<Its price-to-earnings ratio is 30 percent higher than the industry average.>>

Playing devils advocate, some would say that this keeps it from being as attractive and gives investors more downside exposure than in some of the other ECMs who have already had their share price shaved.

<<Jabil, by contrast, has taken only $55-million in restructuring charges and closed one plant in Tijuana, Mexico.>>

Does this mean they are really in better shape or just have not taken the big hit yet? During bubble times, there are numerous examples of companies in similar positions that appeared contrary to the rest of their market segment. While they got priced higher for a short while, the vast majority were just delaying the inevitable and ended up getting hit harder once all the bad news came out because the expectations had been artificially inflated.

It is much harder these days not to be more skeptical and cynical. Perhaps that is as it should have been all along.

Troy
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