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

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To: kolo55 who wrote (1881)11/2/1998 10:23:00 AM
From: 18acastra  Read Replies (2) of 2542
 
Phillips Plant Closings - Great News for FLEX & Industry

Last night Phillips announced closing of 1/3 of manufacturing plants (from 220 down to 160) in order to gain more mfg. efficiency. They said they will increase their reliance on 3rd party manufacturing partners. This is great news for the industry and Flextronics in particular who has the largest presence of anyone in Eastern Europe with their Hungarian facility and has a great relationship with Phillips, who is thier second largest customer.

FLEX stock still cheap by the way. At SLR multiple, price wouuld be in the $70's.

My opinion.
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