Flextronics International (FLEX) Message Board

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Technology Stocks : Flextronics International (FLEX)

FLEX 63.55

-0.3%

Dec 24 12:59 PM EST

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To: Paul Senior who wrote (933)	11/20/1998 1:43:00 AM
From: kolo55	Read Replies (1) of 1422

I don't know if you considered this. But if you feel the urge to sell something, consider selling Solectron short, and continue holding Flextronics. Solectron is trading about 30 times forward earnings, and Flextronics is selling about 22 times consensus forward earnings, and about 18 times my estimate. Another approach, is write call options on Flextronics. The option premiums are pretty rich. You can sell the Apr60s for 11.50, and this gives a fair amount of downside protection. But I still think this stock will run to the 70s by the January earnings report. I think Rich Evans has a good plan. Its too soon for the market to turn down again after the bottom in early September. Well, you've got to make your own choices, but I still think this is too soon to sell. You know, even someone who bought at the highs of 48-50 last fall, is still up 25-30% about one year later. This is what we can expect from a consistent 30+% grower like Flextronics. We've got to give the magic of compounding a chance, give the stocks time to reflect the growth of the underlying business. Paul

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