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To: Johnny Canuck who wrote (25584)	3/14/2000 3:58:00 PM
From: Johnny Canuck	Respond to of 68393

I-watch 7 mil block buy 4 mil block sell 15 mil total 12:45 ET ****** Solectron (SLR) 43 7/8 +3 7/8: More often than not, good things come to those who wait in the stock market. Solectron is a case in point as its stock went into a swoon following its fiscal Q1 earnings results which were announced after the close on December 13. The pervading disappointment at the time surrounded the company's top-line number as it came in at $2.5 bln. While this marked a 28.6% year-over-year improvement, it was short of analyst estimates, on average, by $100 mln-$300 mln. Solectron had itself to blame at that juncture as it provided the guidance for analysts; however, component shortages interfered with its bullish expectations. Although component shortage issues haven't been entirely resolved, Solectron has won back many an investor-- and brokerage firm-- with its fiscal Q2 earnings results reported after the close yesterday. Because Solectron's stock split was effective March 8, but its reporting period ended February 25, the company reported information that reflected pre-split data. Accordingly, Solectron posted net income of $116.9 million, or $0.38 per diluted share, which was in line with estimates and a 49.1% increase over the year-ago period. Revenues were up 32.4% to a record $2.9 billion (in line with consensus), and jumped 16% on a sequential basis, reflecting in part the positive impact of its Smart Modular Technologies acquisition. More importantly for investors, though, was the company's guidance on its conference call that it was comfortable with FY00 EPS estimates of $0.85 and that it felt, over time, the consensus estimate of $1.12 for FY01 would be viewed as being conservative. Bear Stearns observed in its research note that FY01 estimates could go higher if Solectron wins one or more of the pending $1 billion contracts; and the way Solectron was talking makes it sound as if that is about to happen. In any event, there is a great deal of optimism surrounding the company's prospects as OEM's continue to outsource manufacturing efforts in order to reduce costs, and expectations build that component shortages will ease. That optimism is being reflected in the stock, which gapped higher this morning, and has seen an accompanying surge in volume. In fact, block trades are accounting for roughly 2/3 of the 12.6 mln shares that have traded to this point. That kind of interest, no doubt, was helped by positive comments about the stock from the likes of DLJ, Bear Stearns, CS First Boston, Needham & Co., Banc of America, and Morgan Stanley Dean Witter. While the quote says SLR is up nearly 4 points, it has actually jumped more than 7 points from yesterday's close. Hence, with the guidance provided by the company and the bullish backing provided by Wall Street, it looks as if Solectron's swoon has ended.-- PJO