Silicon Investor (SI) -- The First Internet Community

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 : Jabil Circuit (JBL) -- Ignore unavailable to you. Want to Upgrade?

To: Yankee Trader who wrote (5180)	6/16/1999 10:58:00 AM
From: Les H	Read Replies (1) \| Respond to of 6317

Yahoo historical quote for JBL yesterday shows close of 54. Yet, current quotes show a close of 41 1/2 for yesterday on Yahoo!, SI, Dial Data... chart.yahoo.com

To: Yankee Trader who wrote (5180)	6/17/1999 2:20:00 AM
From: Asymmetric	Read Replies (3) \| Respond to of 6317

After Listening to the Earnings Conference Call hard to believe Jabil got thumped as badly as it did. Problem with notebook motherboard (metallic migration) only turned up three days prior ago, and all parties involved agreed best thing would be to redesign, entailing "at worst" a 6 week delay, or possibly only 1 week. This combined with Bay Networks/Nortel design delay, affecting overall possibly 50-60 million in revenue, and 3 cents/share to earnings. No salvaging or obsoleting of any inventory, just additional time to make sure things get done right. I guess from the Wall St reaction, some would've preferred they just keep pushing product out the door at the expense of future reputation for quality and integrity of product produced - injuring both themselves and customer(s) involved. Also from what I heard, the delay would affect only one quarter of revenue and had high probability of being picked up in the next. This contradicts Keith Dunne's assertion in Rich's previous post that this would involve a two quarter hit. Sansome expects growth to continue to exceed 30%, operating income expected to grow 40%, while margins fall somewhat to 10.5%. EPS for year 2000 to grow 33% over 1999, Idaho and Italy both at capacity - Greenfield, Mass a new 260,000 facility to come online Q1 of fiscal 2000 - a total of about 20 customers end of Q3, and exceeding their own goal of adding 2-3 customers per year with the report of 4 new customers, of which Lucent is expected to eventually dwarf much of the other business that exists today. Sheesh - Lucent, Cisco, Nortel, in telecomm. Other companies would die to have just one of those customers in their corner. And both Lucent and Nortel are just barely beginning to outsource manufacturing. Telecomm manufacturing expected to rise to 50% of Jabil's business. At least I agree with Keith Dunne on one thing. From the looks of things, and from what I heard, we are only in the third inning of this thing. Batter Up! Good luck to all. Peter.