Jitters hit the ECM sector
You wrote:it looks like we are getting a second dose of Asia in tech stocks, perhaps compounded by a general market correction. Do you have an opinion on what should be done with the major ECM stocks generally, and JBL specifically?
Yes, the renewed Asian crisis concerns could be hitting the sector again. Also Hadco reports tomorrow, and based on the action of the stock and their warnings, the report won't be pretty. This could be weighing on the sector, as a bellweather.
JBL is especially taking the brunt, in percentage terms. In hindsight, taking some money off the table in the mid-40s would have been prudent. But at 38, I think its closer to the bottom than the top. But who knows, if Asian turmoil hits again, all boats might sink some more. Its hard to predict short term market moves, where 'perception is reality'... at least for a couple of days, weeks, ... or months? But the longer term investment thesis for the major assemblers like Jabil and FLextronics etc, hasn't changed, IMO.
Paul |
