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Technology Stocks : Flextronics International (FLEX) -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (1188)	9/16/1999 4:28:00 PM
From: kolo55	Read Replies (1) \| Respond to of 1422

Whoa Paul S., check your share counts again. I see 52.4 million diluted shares as of the JunQ statement, and there usually are about million or so options out, plus 14 million new shares, and say a million shares dilution per year due to incentive options, so in 24 months we probably will have about 70 million shares out. Now using a PSR=1.0 we get $100, and for a PSR=1.4 we get $140. Remember this is a run rate of $7B, not trailing revenues. Finally, the company will likely match their $820 million in new equity with about $400-600 million in new debt to add $2B in new business. Maybe we should look at EV/sales ratio instead of PSR. For the long haul, this is likely a good move, but the dilution hits first, and the benefits become apparent later, so don't expect the stock to take off tomorrow. My major point is that almost all the big companies in the sector are signalling that access to capital and debt financing appear to be the limiting factors to their growth rate... interesting huh? Paul