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Strategies & Market Trends : Dave Gore's Trades That Make Sense -- Ignore unavailable to you. Want to Upgrade?

To: acuransx_2000 who wrote (3063)	2/25/2002 5:13:58 PM
From: ayahuasca	Read Replies (2) \| Respond to of 16631

I am biased as I own FLEX long, but I believe this will not hurt the stock too much if at all. FLEX has gone from 25 to 15 in the last few weeks, and this seems to be setting up for the inverse of buy the rumor sell the news. There has been a lot of selling the rumor, and given the rather tepid nature of the 'bad' news, I expect a buy the news scenario. There is no reason to get heavy long here, as a significant recovery for FLEX may not materialize until late this year. But, it seems unlikely that it will be tossed aside near it's 52-wk lows when the bottom may have already been seen.

To: acuransx_2000 who wrote (3063)	2/25/2002 5:22:49 PM
From: Dave Gore	Read Replies (1) \| Respond to of 16631

FLEX C.C. UPDATE - CEO is being very conservative and says that current quarter will be at lower end of current eps expectations (i.e. 13 cents eps), but that future quarters will be above by 2 cents eps each and margins will improve. There will be a one time charge of 2-3 cents eps or so for severance pay. In other news, their China factory coming on line and XBOX has been a strong success. Telecom business okay, but not helping the upside as much as hoped. When it does pick up their EPS will pick up markedly. Current eps expecations by Zacks are .64eps and .87eps in FY 2002 and 2003. kevxml2a.infospace.com He also said that they are solidly profitable and is NOT factoring in a telecom recovery in 2002. If it comes, they will be significantly more profitable than they are now anticipating. The new cell phones with color screen, always on internet, and 3g business when it comes will be very profitable for them. Bottom line --- stock is way down from 27 in Jan. 2002 and PE is historically low now, but stock still might get punished a bit tomorrow. If so, I would view it as a tremendous buying opportunity on an intermediate or long term hold. This is a great stock to own in mid-late 2002. I think it could reach $30 a share in 2003 and may buy LEAPS if this gets any cheaper for extreme leverage. It will be very interesting to see how analysts view their call tomorrow. I would guess they may give FLEX a NT hold, LT buy.