I don't have a strong opinion on Plexus here.
On a PSR basis, it sure is getting attractive, with a forward PSR of about 0.50. On a PE basis, it will probably only earn a buck over the next year, so its trading at a forward PE of 14-15. I'd rather own FLEXF at 35 which will grow much faster, and is trading about 13-14 times my estimate for calendar 98 and has a similar forward PSR.
But I would really need to get behind the numbers and find out why Plexus disappointed here, so I'd like to see the earnings announcement first, and give the stock time to find support. I was way too early in ACTM, and the stock dropped another 35% even after the 35% drop on the earnings warning. I'm beginnning to think like General Andrew Jackson, and not shoot "until I see the whites of their eyes". I think I'll have plenty of time to analyze Plexus before it runs away.
Incidentally, I'm not too enthralled with the mid-tier domestic ECM company strategies. The big growth is ocurring overseas now, with Mexico, China, Brazil, and Hungary the hot sites for new ECM expansion, and the guys with Malaysian plants(SLR,JBIL,FLEXF), looking real good with the ringitt devaluation. These mid-tiers are missing out on the big growth driver in ECM sector. First ACTM, and now PLXS have "hit the wall", and I would keep a wary eye on BHE, since they are a similar player. All three of these stocks more than doubled this year before recent troubles.
Paul |
