Down in sympathy w/3-COM, completely wrong.
3-COM burned big today, Jabil goes down w/it because people don't understand. 3-COM down for two reasons
1) People nervous about Cisco gaining share
2) 3-COM downgraded by DLJ because pricing pressure in NIC cards
Jabil does not do NIC cards for 3-COM. Jabil does the networking products for 3-COM, and a lot of the products they mfg. for 3-COM have been doing well, and a lot are exposed to small/med business segment which is completely strong.
Anyway, most traders don't know the difference, so Jabil gets taken to the woodshed w/3-COM.
My advice is, SCI reports tomorrow, it may not be so good. SCI is a dog, and they have their own particular internal issues. Don't buy JBL ahead of SCI report, but if JBL whacked after SCI in sympathy if in fact bad news, then potentially could be the time to step in.
My opinion. |
