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

To: patroller who wrote (5407)	12/1/1999 7:00:00 PM
From: Finder	Respond to of 6317

Jabil would not do a shelf is thry were going to buy another public company, they would do a stock exchange. They are raising cash to either buy an operating unit form another company or to build a major new facility.

To: patroller who wrote (5407)	12/2/1999 1:08:00 AM
From: kolo55	Read Replies (3) \| Respond to of 6317

I agree... Jabil just built a plant in Massachusetts. What would Jabil want with ACT Manufacturing? There really isn't much there to interest Jabil. They have built plants in Massachusetts and in the SV in the last year, and have plants in the South. ACT has no real global presence, so they don't help fill in the gaps in Jabil's global footprint. All ACT has to offer, is a terrible management team, domestic plants that duplicate Jabil's current facilties, and a load of debt. The GET Manufacturing deal seems to be a much more intelligent deal from a strategic point of view, and I suspect those kind of opportunities are more in line with what Jabil's management has in mind. Remember, the HP deal was one of the best we have seen, for an outsourced operation, and GET could be another gem. I think Jabil has got a pretty good record at making profitable deals, perhaps just not quite aggressive so far... however the flip side of not being so aggressive, is the strong balance sheet. Jabil has one of the strongest balance sheets in the sector, with $141 million in cash, about $40M in debt, and stockholder's equity of $546 million. I think they are planning a number of deals with OEMs outsourcing, and are planning a combination stock/debt offering, with the emphasis on using more debt. Their balance sheet can support more debt, and this should allow them to bid on higher priced opportunities. The next earnings report should be interesting, and if not then, then soon, we should see how Jabil plans to spend some of this hoard of cash. Paul