Market perception is everything in the short-medium term. Is the "PE" argument valid? It is if the market believes it. I mean, the estimates are out there. While the future may be different than those estimates for either company, what matters now is perception. Only those who hold will know if their view today will be the correct one in retrospect a year from now.
I have held each in the past, and now I am in FLEX. I don't daytrade, but I don't mind switching when I see a reason to once in awhile. I really think the future is great for both FLEX and JBL. Whoever "loses" this race for growth in the coming years won't be so far behind that it makes too much difference anyway IMO. On the way, if different perceptions arise, I will adjust my portfolio accordingly.
One thing I've come to believe in the tech market is that perception is now, reality comes later. Looking at the stocks both ways is more beneficial than sticking to either one alone for me personally. I like the PE argument for FLEX and so does the market, but that alone doesn't mean everything. And don't for a minute think that I am unaware of JBL's future potential. I'm trying to be objective at all times, but I do pay attention to market perception as best I can. I'm not a buy and holder, although your points are well taken for those who are. That's why I frequent boards like this to read daily. I just laid out the numbers for David to explain the short term thinking in response to his question. IMO, all top tier companies in this sector are going to do well in the years ahead. I personally like to trade once in awhile though, so I pay attention to everyone :) As far as I'm concerned, both FLEX and JBL have indeed made this a Merry Christmas! Too bad they don't just merge. That would make life a little easier :) |
