Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (28352)	3/18/2005 11:31:11 PM
From: rich evans	Respond to of 306849

John, I own a company called Flextronics- a contract manufacturer. The new business plan discussed on the conference calls and corporate management talks is the outsourcing of services- namely engineering. Flex has bought a software company to outsource code for its cellphones it makes etc and now has over 7000 engineers to do the engineering for companies wanting products. The US engineers end up being project managers it would seem. So I would agree that there are disturbing trends but do not have an answer for this as competition seems to dictate it- something called comparative advantage. Rich

To: John Vosilla who wrote (28352)	3/18/2005 11:48:53 PM
From: mishedlo	Read Replies (1) \| Respond to of 306849

not spending spending on capex? Where do you propose it go? make more cars? chips? phones? ice cream? computers? peanut butter? calendars? craftman lawn mowers? Improve existing production so we can layoff more people? I don't know about R&D but I suggest we are so stuffed with stuff that even distribution channels are stuffed and so we do not need to increase capex to produce even more stuff! If you think we need more stuff, tell me what stuff we need and then tell us where are we going to put it. The problem is there are no good places to put money so it goes into consumption and share buybacks at absurd prices, and mergers at even stupider prices. Five years from now in the middle of the bust, companies will be undoing mergers, spinning off companies, etc etc etc to "unlock shareholder value" Mish