Electronic Contract Manufacture (ECM) Sector Message Board

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

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To: kolo55 who wrote (1679)	8/17/1998 11:56:00 AM
From: jeffbas	Read Replies (1) of 2542

Paul, I believe the weakness is due to a number of reasons: -General market weakness and specific tech stock weakness. The key characteristic of a bear market is that fundamentals don't much matter. -Serious doubts that the sector will really show 25% growth (even if you limit it to the larger better-positioned players). The semiconductor business is in the pits not because units are not growing but because ASP's are dropping. I suspect that there are concerns of that here. -There has been a lot of plant expansion here. Look at ACTM, for example. They were willing to price business at breakeven to get sales up this past quarter. It doesn't take a lot of players like that to have an impact. -Major fundamental weakness in the Hadco area of the business. -The possibility of a domestic or worldwide recession or recessionary conditions, beyond just Asia. I would love to see some comment to the effect that I am all wet; but I do not think that I am.

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