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

To: Paul Senior who wrote (2411)	8/12/2000 3:25:50 PM
From: kolo55	Respond to of 2542

I have also picked up a lot of SLR lately. Based on my model, SLR is about 20% undervalued compared to most of its peers such as CLS and JBL. My model also has FLEX undervalued almost 20% (when it trades below 75), if I use the recently upgraded earnings estimates from Keith Dunne at Robertson Stephens. The recent acquisitions of Chatham and JIT apparently will move Flextronics into the number two position in the EMS sector. I bought my first shares in FLEX when the market cap was only about $350 million during the period Dec96 through May97. There were times in that period where my purchases represented 20% of the FLEX trading volume on that day. I find it satisfying to see the growth in my favorite company in the sector over the last 3 1/2 years. The thing I remember most about that time, is the large number of people who hated FLEX. They had become delinquent on their SEC filings due to a dispute over "in-process R&D write-offs", and had an E attached to the trading symbol to signify this. Investors didn't like the highly leveraged balance sheet. OTOH, I was attracted to the company because of their aggressive growth stance, and by Micheal Marks' vision of the future for this sector. I could see a visible growth path, because Marks laid it out for us. Seeing Flextronics become the second largest company in the sector (passing by some excellent companies in the process), is very satisfying. It gives me a lot of confidence that a well thought out, well researched, well tested analysis, is very valuable to investors. Especially in those contrarian situations where a terribly inefficient market can be used to the long term investor's advantage. I hope our recent moves in Solectron work out for us. Paul

To: Paul Senior who wrote (2411)	8/13/2000 12:02:44 AM
From: G.M. Flinn	Read Replies (1) \| Respond to of 2542

Paul, re: flipping. SLR is the 2nd most undervalued CEM now amongst the big boys, next to SCI. You probably made a nice move on the purchase. However, I was flipping INTO ACTM last week... buying more at $37.50 and $39.375 ... while selling one of my favorites, SCI, at $52 and $51. ACTM is trading at about 40% the forward P/E that SLR is, and considerably less than that vs. the others. It is also the farthest off its 52-week high. Good luck on SLR ... I am likely to buy some, too, if it drops anymore. Glenn

To: Paul Senior who wrote (2411)	8/13/2000 4:31:13 PM
From: MGV	Respond to of 2542

Paul, I was looking into LDP and noticed your name there. It looks good to me. Cheers, Mark