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Technology Stocks : Jabil Circuit (JBL)
JBL 226.550.0%Dec 19 3:59 PM EST
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To: Rosemary who wrote (3812)5/13/1998 9:48:00 AM
From: Dennis R. Duke  Read Replies (1) of 6317
 
That is a good tip. I will e-mail today. Do you already get the analyst reports? Had you already seen the Alex Brown info?

Now to Merrill Lynch. They did a report yesterday which includes the HP deal in the comments, but not in their estimates until the deal in closed. Their highlights are as follows:

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Investment Highlights:

This acquisition should help to alleviate concerns about the company's ability to reach F1999 EPS estimates.

The rise in Jabil's shares should be driven by an expansion in the PE to the low-to-mid 20's over the next 12-18 months based on our F1999 EPS estimate as investors become more comfortable with the company's ability to consistently grow sales and EPS 27% a year.

Fundamental Highlights:

Jabil announced that it has signed a memorandum of understanding to acquire the manufacturing assets at two of Hewlett-Packard's LaserJet printed-circuit assembly facilities.

This would represent Jabil's first acquisition of an OEM facility and it expands its geographic manufacturing reach and its presence with Hewlett-Packard.

Management believes the acquisition should add $500-$600 million in sales and $0.10-$0.15 to EPS in F1999.

We are not adjusting our F1998 and F1999 EPS estimates until the deal is consummated, which should be by the end of August.

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No upgrade of the recently upgraded opinion, which remains a C-2-1-9. I previously reported the number system.

There is also a page of text following the highlights, but I won't re-type the whole report. The above answers the question about the benefit of the HP deal, which was my biggest question.

Have a good day, Dennis
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