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To: Johnny Canuck who wrote (25647)	3/17/2000 3:15:00 PM
From: drsvelte	Respond to of 68434

SLR..harry, did yu see this? Trader's Edge: Solectron (SLR) 17-Mar-00 00:03 ET [BRIEFING.COM - Patrick J. O'Hare] Solectron (SLR 43) provides electronics manufacturing services to OEMs who design and sell networking equipment, workstations, personal and notebook computer peripherals, and telecommunications equipment... Down 9.6%, its stock has had a bumpy ride so far this year, but recently, it looks to have found its way... Trading Points After some disappointment over its top-line growth in its fiscal Q1, Solectron's stock ran into a difficult period, falling from a price of 45 1/2 on Dec. 13 to a low of 28 1/4 as recently as March 8. The stock has made an impressive comeback, though, rallying 52% in the past six sessions on fairly heavy volume Its most notable move in that period came this past Tuesday when it gapped higher on the heels of its fiscal Q2 earnings report... Volume that day was 16.3 mln shares-- more than 5x its 3-month daily average of 3.17 mln For its second quarter, SLR posted net income of $116.9 mln, or $0.38 per diluted share ($0.19 post-split), which was in line with estimates... Also in line with consensus estimates were sales of $2.9 bln which were up 32.9% yr-over-yr and 16% on a sequential basis, reflecting in part the positive impact of its Smart Modular Technologies acquisition In its conference call, Solectron management acknowledged that it was comfortable with FY00 EPS estimates of $0.85, but dangled a carrot by observing that it felt investors would eventually view current FY01 EPS estimates of $1.12 as being conservative To no avail, shares of SLR quickly surrendered their post-earning gains, filling the aforementioned gap on the way down in a sector-wide retreat that saw the stock bottom at 39 yesterday before rebounding smartly This recent volatility notwithstanding, SLR should exhibit decent relative strength going forward as confidence is growing that component shortages are easing slightly, and that its sales and earnings prospects are favorable with OEMS increasingly looking to outsource manufacturing efforts in order to reduce costs and improve product time-to-market... Solectron reportedly has several $1 billion contracts pending In addition, the stock enjoys a wide following on Wall Street, and a favorable one at that with 12 STRONG BUY recs. and 12 BUY recs... Following its earnings news, Needham, Banc of America, and Morgan Stanley each reiterated STRONG BUY ratings, and CS First Boston and Bear Stearns reiterated BUY ratings... Meanwhile, DLJ upgraded the stock to TOP PICK from BUY This positive backing coupled with the company's good earnings visibility, solid growth prospects, and leading position in a high growth industry augur well for further multiple expansion... Briefing.com's 12-month price target is 55.