DII Group, Inc. 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.

Technology Stocks : DII Group, Inc.

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jimbo Cobb who wrote (1811)	4/27/1999 3:27:00 PM
From: rich evans	Read Replies (2) of 1845

Very Positive Report by DIIG for Q1. They are definitely focused now on the ECM growth business and getting about 1/3 of their business from their linked strategy. Even the Semiconductor division is profitable and looking good on a forward basis. Tax rate at 15% is similar to FLEX and should be continued at that basis as does flex as their income sources worldwide are similar. See greater than 30% growth with boxbuild getting to 40%.Nice spread in the industry segments with Data/Telecom looking the strongest IMO now and future. Margins at multech took a small hit but looks like one time deal and should improve in rest of 99. Also see SGA lowering from 8% from increased revenue volume .Balance sheet looks good and as they say Best in Class.Look for more acquisitons from OEM and NOrtel Networks contracts have not been awarded yet and DIIG still in the running as one of the select few. Expanding capacity everywhere so spending a lot of money causing the 13 mill reduction in cash on Balance sheet. The Mexico expansion looks big at Guadalahara. I wonder why they don't look at buying a Mexican EMS like ELAMF for example or creating an alliance with them so they can get all the campus support they need for sheet metal etc.This stock still cheap at 30 compared to peer group and they seem to have the mass and assets in place now worldwide to compete with the big boys and should get their multiples since their growth rates seem to be comparing to them now. Market needs to reevaluate this company IMO. Diluted shares are now 30.6 mill with redemption of convertibles. HWP still a 16% customer but interesting thing is that this represents 7-8 programs and not just one as in the past so risk much less and won't get hit with the reductions that occured in the past from HP IMO. Rich

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next