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Strategies & Market Trends : Electronic Contract Manufacture (ECM) Sector -- Ignore unavailable to you. Want to Upgrade?

To: patroller who wrote (2179)	12/14/1999 11:21:00 AM
From: Robert G. Harrell	Respond to of 2542

So, if one wanted to round out his ECM portfolio with SLR, would this be a good buying opportunity or will we take a much bigger hit in the inevitable tech sell off sometime after the new year and therefore have a better buying opportunity then? Bob

To: patroller who wrote (2179)	12/14/1999 12:13:00 PM
From: Sam	Respond to of 2542

FWIW, the flash shortage is expected to last well into Y2K, though new capacity is being built even as we speak, and Fujitsu announced not too long ago that they will convert their DRAM factories to flash production. Whether the added new capacity will lead to a DRAM scenario of crashing prices or not is anyone's guess--in fact, since I own a flash company (Sandisk), I'd like to hear people's guesses on that issue if they have any. Pretty much many of the same players that are big in DRAM are also big in flash (Toshiba, Samsung, Hitachi, etc., and a couple of others like AMD, Sandisk, Intel). Have they learned anything from the DRAM pain? Or will it be business as usual?

To: patroller who wrote (2179)	12/14/1999 4:56:00 PM
From: rich evans	Read Replies (1) \| Respond to of 2542

I think you are right. Time to go skiing . I did buy some calls to close some I sold in JBL by mistake. I remember SCI being asked about component problems and they indicated that they were not having problems but did see firming and rises in prices but they don't buy on spot market I presume. Anyway Bank of America agrees with you. >>RESEARCH ALERT- BofA sees no EMS component fears December 14, 1999 04:10 PM NEW YORK, Dec 14 (Reuters) - Banc of America Securities analyst Paul Fox on Tuesday reiterated his strong buy ratings on several computer contract manufacturers and said he saw no evidence a component shortage was hurting the companies' results. In a research note, Fox took issue with fears that have trimmed roughly 10 percent off stocks in the electronic manufacturing services (EMS) sector Tuesday. Fox said Flextronics International's FLEX "business is off the charts" and that it was seeing none of the component shortages that hurt rival Solectron Corp.'s SLR results for the quarter ended in November, sparking the stock sell-off. "(There is) higher management confidence than ever before," Fox said in a research note to clients. Shares of Flextronics closed off 7-3/8 at 85 Tuesday on the Nasdaq stock market. Of Celestica Inc. CLS , another contract manufacturer, the analyst said the company was seeing no component issues. Fox said he continued to forecast "significant upside" to revenue and earnings estimates. He has a target price of $130 on the stock, which closed at 81, down 9-9/16. Fox said Sanmina Corp. SANM , another maker of printed circuit boards and a contract electronics assembler, was seeing very robust business and that its management's confidence was the highest in four to five years. The stock was off 12-2/16 at 95-15/16 at the close of the Nasdaq stock market. He was also positive on SCI Systems Inc. SCI and Jabil Circuit Inc. JBL . ((-- Eric Auchard, New York newsdesk, 212-859-1840)) REUTERS Rich