Peter,
Meltdown is right. JBL and CLS both now have about $2.5b market caps, FLEX about $3.4b, SLR around $1.6! With no bottom in sight yet. Of course, there is never a bottom in sight at the bottom, but still--these are prices going INTO tax selling season, not DURING tax selling selling. I swear it looks like SLR may drop to sub $1, less than a $1b cap. Being a bloodied veteran of the disk drive stocks, PSRs of between .1 and .2 are possible for ongoing enterprises, especially for those with such slim profit margins as ECM stocks during times of economic contraction. There is so much overcapacity in the world--the ECMs have a delicate balancing act right now of being able on the one hand to shutter unneeded capacity, conserving cash while reducing overhead and, on the other hand, being able to maintain on-going business and being ready to increase production when the recovery comes.
Of course, perhaps I am being optimistic in using the word "when" rather than "if".<g> Or so it feels right now. But don't worry--our president is on top of our problems, and will steer the ship aright. After all, his Sec of Treasury just said last week that we will have 3-3.5% growth next quarter.
Sam |
