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.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Exacctnt who wrote (11473)	11/30/1999 9:14:00 AM
From: Mike Buckley	Read Replies (1) \| Respond to of 54805

Exacctnt, If you want to consider outsourcing manufacturers, Solectron (SLR) may be the bigger and better company. Now that you mention it, I'm reasonably confident you're right that Solectron is the big whig in that industry. The industry is capitalizing on the early phase of a huge trend that companies outsource their component manufacturing. For those interested in Kings, it would be well worth a look to see if indeed SLR controls enough market share to wear the crown. --Mike Buckley

To: Exacctnt who wrote (11473)	11/30/1999 10:19:00 AM
From: tekboy	Respond to of 54805

<<Has anyone considered Jabil Circuits as a King among the outsourcing electronics manufacturers?>> MB <<Solectron (SLR) may be the bigger and better company." XA For those looking at this sector, two other companies to include in the analysis are Sanmina (SANM) and Celestica (CLS?). This whole area was extraordinarily hot earlier this year, and with perfect "tekboy timing" (tm) I got interested just afterwards. Solectron was the market leader, with Sanmina and Jabil lower down, and Celestica (yet another Canadian company) little-known but coming up on the outside. It would be great if someone would do a thorough GG write-up of this sector, since it should continue to do well over the next several years as the basic trends in outsourcing continue. But--people should keep in mind that a) this is certainly not a gorilla game; b) from the minimal DD I did over the summer I saw few barriers to entry or high switching costs; c) there might be a decent amount of cyclicality in this area. As usual, I defer to those who actually know something, and remain, as ever, tekboy/Ares@merlinforaday.com PS Eric, Mory's is still there and doing fine. Cups are still passed, Welsh rarebit is still available, and a good time can be had by all. I was just in New Haven 10 days ago, visiting a friend's kid who's now a freshman, and got all misty-eyed and nostalgic. Recommend all alums go back to their old haunts now and then for reflection.