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To: DlphcOracl who wrote (31924)	8/13/2000 8:36:08 PM
From: Jane4IceCream	Respond to of 57584

Thanks for the response DO......regarding KLIC, the reason the shares fell was due to the announced orders delay. The company is in solid shape otherwise. We know ANY negative in a story these days Wall Street hits the stock big time. Have a great week!! Jane

To: DlphcOracl who wrote (31924)	8/13/2000 9:48:02 PM
From: DlphcOracl	Read Replies (4) \| Respond to of 57584

An Investment Idea: SCI Systems (SCI) Aside from pounding the table to buy chip stocks and chip equipment makers for the past few weeks, the other sector I have pounded the table on is CEM (Contract Electronic Manufacturers), such as FLEX, SANM, JBL. Outsourcing of electronic circuit board design and assembly is one of the strongest trends and will only increase going forward. Look at the 1-yr charts on these stocks and you'll see what I mean. SCI Systems is also a CEM but has been less visible with less of a run-up than its brethren. This is because it is a more diversified CEM, serving virtually every electronic market. In particular, it has been known for its work in the PC sector, aerospace, defense, and US Government contract work. SCI is in the process of re-inventing itself and it is trying to shift more of its work into the higher margin communications products. It has recently acquired EOG Inc., an electronics design & manufacturing services company with solid exposure to optical networking, and Telrad Networks, an Israeli facility that assembles circuit board for optical network customers. In summary, this may be a back-door play in the optical networking sector. Both acquisitions should bring in more optical networking work and introduce it to customers in this sector that SCI has not had exposure to. To see what the potential is, take a look at the 1-yr. chart for Newport Corp. (NEWP), another "picks-and shovels" play in the optical networking sector. Since this transition will not occur overnight but over several quarters, this is a LT buy, not a trade. However, SCI is a solid mid-cap stock that has been around awhile. The combination of being a CEM with increasing exposure to the optical networking sector is (IMO) promising. As always, please do your own dd. Any comments, either positive or negative, are always welcome.