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Technology Stocks : Solectron -- Ignore unavailable to you. Want to Upgrade?

To: Alfred W. Post who wrote (437)	2/26/2002 9:14:02 AM
From: BWAC	Read Replies (1) \| Respond to of 493

Disagree. Not necessarily with your overcapacity theory. SLR itself is over capacity, and thus over expensed, and thus needs to align its expenses to the newer capacity realities. But the trend is still to outsource SLR's specific form of manufacturing. SLR is well positioned to take on more business as it comes. SLR's customer base is still looking for reducing thier costs and capital needs through manufacturing outsource contracts. SLR's problem, right now this moment in time, is that they have delayed taking the necessary steps to align expenses and capacity to the current foreseeable environment. Apparently they have made a decision to stnad pat and wait for a recovery. Which one could assume will leave them well positioned to take on new business, higher demands, etc. if it ever materializes. Plus SLR, its industry, and competitors have been consolidating and merging during this economy downturn. Sometimes capacities shrink during these.