Electronic Contract Manufacture (ECM) Sector Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Electronic Contract Manufacture (ECM) Sector

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Asymmetric who wrote (1451)	4/22/1998 10:43:00 AM
From: rich evans	Read Replies (1) of 2542

These comments came from DIIG cc and HDCO. PGTZ indicates not seeing so much. The simple answer to your question is that I believe I remember "them" saying that they would expect competition in the higher layers in the future but generally it is a technology question. Board making is becoming more high tech and capital intensive especially with HDI and embedded technology. According to PGTZ cc they at 180 mill run rate have 2.5% of a 8 Bill PCB market. The top 8 players which Creditman would know best have 25% of the market. The less than 20 million/year companies have 42% of the business. The rest I would imagine are the inhouse captive shops. So PGTZ and rest expect thesmall guys to go away as industry becomes more global and requires larger layer counts with high tech processes and more competency. Taiwan will be a global player but so what? Gkeographic proximity is desired because design/ one stop shop/ Q/T facilities to serve area are allimportant. More of a partnership idea with the customer. So PGTZ i.e. went into Huntsville to serve that ARea. This is basically what I heard. Also HDCO in the industry has come out and said they are going to compete agressively on price to get more business and fill their plants so expect pricing pressures to continue and margins under pressure for the near future. PGTZ and HDCO are the closest competitors and often bid against each other. e. I don.t know where Viassytems fits in but Creditman would know more. Hope this helps. I am sticking with the investment as the growth of 20% seems to be there and prices very low for the stock so I feel comfortable with these board companies but more bullish with FLEXF etc. I did sell my JBIL35 DEc puts for $5 and 3/8 and seemed an easy way to pick up some cash if one is bullish on JBIL especially by next Dec. May do some more if my margin account can handle it. Rich ps please pardon my typing skills.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next