Hello Ike,
I agree that the REAL money in Jabil was made in it's move from the $40 level. But I still think that there is still a sizeable upside move left. As you know, I have been following the Electronic Contract Manufacturing (ECM) sector for a few years now and with OEMs like Cisco, Compaq, IBM, HP and others finding out that out-sourcing the manufacturing end of their business makes more and more sense, ECM companies like Jabil, Solectron, Flextronics and others are experiencing incredible growth. For example, Solectron (SLR), a behemoth in this sector, in a recent meeting with analysts, sees it's revenues increasing from the present $8 billion to $20 billion in the year 2001. Now that is mind-boggling growth for a big company! BTW, analysts are predicting 30%+ yearly growth in this sector for atleast the next 5 years!
If the general markets hold their own between now and Jabil's earnings' report on Dec 15th., I can see Jabil, which closed on friday at $63 3/8, easily making a new all time high of $72 and change. And by March of next year, I see Jabil being in the $90-$100+ range. Also, with a stock split in the offing by their March '99 earnings report at the latest (there is an outside chance that they may make some sort of an announcement on Dec. 15th.), this stock imho, has still a lot of upside potential. To underscore my above target, Jabil on friday announced the almost doubling in size of their plant in Guadalajara, Mexico.
biz.yahoo.com
BTW, for those that missed Jabil's recent explosive move, there is another ECM company, the DII Group (DIIG) which is, imho also getting ready for an equally explosive move. Even though it's stock price has doubled recently, it is now trading in the $20-$21 range, I see it's price surpassing it's all time high of around $32 within 2 months!
Good Luck!
Karim
PS, Everyone, please do your own due diligence. |
