Electronic Contract Manufacture (ECM) Sector Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Michael Anthony who wrote (1917)	12/14/1998 7:43:00 PM
From: kolo55	Read Replies (1) of 2542

Solectron earnings out... and they look good. I didn't listen to the conference call, but I posted some brief comments on the Solectron thread: Message 6832867 Tomorrow is Jabil's turn. Regarding the performance of the EMS sector over the last several months... well its been outstanding, particularly for the larger cap issues. I am gatting a bit concerned though about the connection between this sector and the SOX index. I don't understand why this sector should rise and fall in connection with the semiconductor companies, but there does seem to be some historical correlation. Even more confusing is that the SOX contains semiconductor equipment manufacturers. The reason I mention this, is that the SOX got reamed today but good. As an example, Intel was down over 4 points, and Applied Materials and KLA-Tencor were down about 3 points each. What makes me feel worse, is that I'm not very optimistic about the forward performance of these three stocks (for example) over the next six months. I think the SOX has run too fast too soon. I expect the microprocessor and memory stocks will correct in the 1st or 2nd Q, and that the semiconductor equipment stocks will get pounded down about 30-40% from recent highs. If the EMS sector correlates as in the past, then the SOX could put a drag on the sector over the next six months. Hopefully the understanding of this sector has improved to the point that the EMS stocks won't be slaughtered along with the SOX, the way it happened last spring. The individual companies in the EMS sector should show some significantly improving top and bottom line results over the next twelve months. This is JMO, and I would like to hear others. Paul

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next