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

To: Dave Gore who wrote (4674)	3/28/2002 8:37:40 PM
From: Bruce A. Brotnov	Read Replies (3) \| Respond to of 16631

Dave, I just received an invite for $100k portfolio contest for month of April. It looks like a group can be entered, perhaps we could enter "Gore's" group and compete with an established system and rules with no cost. Let me know what you think as it starts 1 April. wellstradechallenge.com Bruce

To: Dave Gore who wrote (4674)	3/28/2002 9:42:26 PM
From: rich evans	Read Replies (1) \| Respond to of 16631

Big price differential on SLR versus FLEX which have about equal sales and equal leverage. SLR has more shares of course 825 to about 520 but still FLEX is selling 2.5 times SLR. The equal gross margins are deceptive IMO. SLR's gross margin is nearer to 4% on the EMS portion as their services and technoloy area which run at 20% anad 15% respectively raise the margin to 6.6%. Flex on the other hand has IMO margins much higher in the EMS area equal to CLS and Jabil but their PCB operations lower them down to 6.7 overall. But with SLR you get a play on both the EMS story plus a turnaround story. With FLEX you get the EMS story only as they are run very well and efficiently. So with these prices my verdict would be to buy SLR. Market thinks they have balance sheet problems but this is wrong IMO as they have 3.3 bill in cash and are generating more to buy back debt at a discount like last quarter. Still their EMS business sure has gone down even in the last quarter since C-Mac was not in the NOv results but included at $350 in the Feb results so you are seeing continue weakness in their core business-- hence their stock price IMO. But with their new business which should be accretive to this run rate of 3 Bill a quarter, I see a great buy but it will take awhile as the comm sector keeps getting pushed out which is now at end of 2003 calander year. Market is not that forward looking I guess. But they did a deal with NEC which was supposed to close in March and has not been announced I think and this will add more to the pot.I have been buying the 2004 calls as a leverage play. They are at book value which is a blue light special IMO. Rich