Jabil Circuit (JBL) Message Board

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Technology Stocks : Jabil Circuit (JBL)

JBL 192.45

-3.9%

Nov 20 3:59 PM EST

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To: gs who wrote (2336)	12/23/1997 9:44:00 AM
From: Fenton White	Read Replies (4) of 6317

Garri&All; Merry Christmas and Happy Holidays; still on vacation. I bought a new set of PING Nickle Irons; they look great, feel great, but they have not helped my game. Oh well, practice, practice, practice. In response to your question: JBIL is not a retail operation. All they do is make components. They are only in business if they provide components with price structure less than 3com or hp could build them for. What is the book value of JBIL? That is what it cost to build the infrasturcture (plant and equip). What type of premium would you pay for inventory control? Price competition is going to increase and component margin will continue to decrease for the next 6 to 9 months. How much would you pay for the company? How much over book? How many years do you want your money tied up in a business that will have shrinking margin? Would you increase or decrease your multiple because the company order stream is at risk? How much would you pay? HP is an end user with the chance to increase margin due to reduction in component prices. They have established a retail position and pipeline. Regards, Fenton PS I loooked at CMEL yesterday. Looks interesting.

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