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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: D VanSwol who wrote (7793)	6/26/1999 12:47:00 PM
From: JZGalt	Read Replies (2) \| Respond to of 18928

Dennis, JBL makes custom circuit boards for a variety of large customers. They have design wins and close relationships with downstream customers but that is where the similarities end. The risk in JBL is that they are more oriented toward PC circuit boards than telecommunications circuit boards. Consequently when DELL or Gateway sneezes, JBL catches cold for no good reason and that provides very good buying points for the stock. The reason this stuff doesn't matter is JBL makes money on the volume of PC's sold and not the eventual margins at which they are sold. I have no idea why analysts cannot figure this out. By subcontracting a significant share of custom boards out to JBL, the OEM suppliers are helping their margins even though JBL still makes a nice chunk of change. Typically JBL picks up one or two additional major contracts per quarter. If you read the "Gorilla Game", JBL is one of the Gorilla's in this area. As Tom noted, JBL is one of the best names in the business and now still commands a premium p/e. Companies to compare to JBL are SANM, CLS, DIIG, PLXS, SLR where the general category can be described as independent providers of customized manufacturing services to electronics original equipment manufacturers (OEMs). This is a comparison chart of the group as I see it. exchange2000.com SANM is the name when it comes to telecommunications circuit boards. My best guess is that JBL will float down toward it's 200 day moving average. You can do research on JBL at this page. confirmatoryanalysis.com ---- Dave

To: D VanSwol who wrote (7793)	6/28/1999 8:08:00 AM
From: OldAIMGuy	Respond to of 18928

Hi Dennis, I had made a "reasonable" first investment in JBL about 18 months ago and had enjoyed the experience so far. JBL is a component assembler who builds things for Lucent, Dell, HP, Compaq (?), and others. They don't make chips, but assemble them into products for others. The end products are private labeled. So, the $$$ stayed in the field of electronics, but not specifically in the mfg. of chips. Yes, I considered adding to the VTSS position, but it was already one of my largest single holdings - having gotten there the "old fashioned way" via internal growth. JBL looks to have many of the features that I like to see in an investment for 3-5 years (as far as I can reasonably guess about the future). It also has shown a bumpy pattern that many rapidly growing companies show. That makes it a good AIM candidate as well as a good overall investment. I, too, funded my core income producer GSF with some of the proceeds from the VLSI buyout. I took what had been my initial investment in VLSI and sidelined those $$$ in GSF. That left me with a sizable amount of money to pay some taxes and to invest in something "new." In this case, it was a decision to stay with something I already liked rather than start something new. Best regards, Tom