Their are 4 public players that fall into the category of scale and global: SCI, Solectron, Jabil and Flextronics.
In my opinion, these 4 will all win, some component of growth coming from ~25% overall industry growth and another 10%-15% growth coming at the expense of smaller, less well positioned playes (maybe not stealing their business, but winning a disproportionate share of new business).
In my opinion, Of the four, Flextronics has the most attractive valuation on a P/E and Price/Sales basis. It also seems to have a lot of upside relative to analyst estimates. Additionally, they have low cost manaufacturing in China, Malaysia, and Mexico that is getting lower and lower cost due to currency de-valuations. This should position FLEXF to win more business from their global blue-chip customer base that already includes Cisco, Ascend, Microsoft, Advanced Fibre and other significant datacomm and telecomm players.
My opinion. |
