Jabil Circuit (JBL) Message Board

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Technology Stocks : Jabil Circuit (JBL)

JBL 207.21

+1.6%

Nov 26 3:59 PM EST

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To: Michael Anthony who wrote (3393)	3/25/1998 10:50:00 AM
From: 18acastra	Read Replies (2) of 6317

Then buy JBIL and short = $ amount of Solectron if worried about market. Solectron has a P/E multiple about 5 points above JBIL's. Although a great company, and would not short outright, pair trade is compelling. Solectron is also growing slower than JBIL, and has lower ROE. I also believe guidance JBIL gave going forward was very conservative. Also seems like two issues that led to Jabil's slowness have been cleaned up: 1) Quantum said end user demand for DLT remains strong at 30%+, just inventory correction, so JBIL's production should resume strongly once inventory bubble gets worked through 2) 3-COM sounds like they worked through a lot of their inventory issues this Q, and things should resume to normal going forward No way this valuation disparity should exist. My opinion.

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