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

To: patroller who wrote (1204)	11/22/1999 11:22:00 AM
From: rich evans	Respond to of 1422

Boy, this Flex-DIIG deal sure seems to have come out of the blue. I guess this the DIIG "feast" we talked about long ago. Marks says deal is for the better capacity,fill out global needs, PCB business, and especially engineering. I guess the old orbit deal finally turned out OK. FLEX is turning away some business . Hungary filled but now can use DIIGs CZech. Arbitrage looks like buying opportunity for FLEX. If DIIG profits/revs get FLEX valuations, then... PSR valuation seems less then your 2 to 2-5 range you mentioned. DIIG revs were going to be about 2 bill for 2000 and with 36 mill shares , this comes to $55/share. EPS guidance for DIIG was 2.30. So if you value it forward looking , at $65 on the exchange , you get 28 PE which is the old Keith Dunne average for top tier ECMs awhile back which he expounded . Valuations have gone far beyond that since of course. FLEX gets HWP and IBM as big new customers from DIIG. Do you think this is a problem with their new CPQ business? Or don't the OEMs care ? They are talking about $6 bill plus for calander year for the combined companys. Paul what do you see and what about profits? Hard to diversity in this industry with all the consolidation. Rich