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Strategies & Market Trends : Electronic Contract Manufacture (ECM) Sector
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To: kolo55 who wrote (2087)5/15/1999 12:40:00 AM
From: MGV  Read Replies (1) of 2542
 
The point about relative valuations is not in dispute. You do have to get them right.

You could admit you were wrong about CLS' relative valuation to FLEX in March but, its not necessary, the market is beating you over the head with it. I'll give credit where it is due. If your mythical pair with the CLS short were to be measured today it would be an even bigger loser, just as several of us suggested.

You talk big with gratuitous accusations of lies and misrepresentations. I've noticed you never are able to document any of the accusations. The truth is there is nothing confusing about your self-anointed claim of superior knowledge in the ECM sector. It has a mighty large hole with your call against CLS.

My current response:
I have stated that FLEX should trade at a 30-50% premium to CLS stock price (IMO). Today FLEX closed at just less than a 30% premium.

There are at least two problems with your analysis. First, using share price as a basis for comparing valuations has no merit or value. The truth is that on the basis of more useful comparative measures, the FLEX premium to CLS was substantially higher than the 30-50% you opined when you said it in March. On the basis of the significant measures and CLS' Q report, the discount has narrowed.

Second, you said CLS was fairly valued relative to FLEX when it was 28 and Flex was 42. Since then, on an absolute scale, CLS has risen more than FLEX. On a percentage scale, the difference is more acute.

How about that CKFR?
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