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Strategies & Market Trends : Electronic Contract Manufacture (ECM) Sector -- Ignore unavailable to you. Want to Upgrade?

To: kolo55 who wrote (908)	12/2/1997 12:14:00 AM
From: BenYeung	Respond to of 2542

U called that 30+ point drop in Jabil "profit taking," and this one company's outlook dragged down the STOCKS of other companies in the sector??? Selling at 72 is profit taking...selling at 39 is not... Dont be naive enough to think that. Market makers/Specialist dragged down the prices of these high flyers AFTER they have sold off their inventory (stocks) and sold short to supply demand. Then they plummeted the stocks to scare of investors and to cover shorts. Other than that, I do like your comments and analysis on the companies. But to analyze stock prices is another matter that cannot be explained by simple earnings, growth, and news.

To: kolo55 who wrote (908)	12/2/1997 12:25:00 PM
From: rich evans	Respond to of 2542

Thanks for your good comments. I would add that the board makers are in the same boat. HDCO indicated at the CC that they would do at least 800 mill=20%+ and operating margins up 1 = 12.5. Interest is the same 8 mill and tax rates go down to 38.5. This calculates to about 4.25 share or 14 forward PE and 17.5 TTM . MLPFS has HDCO at 4.00 but their tax rate is too high. CCIR at their CC indicated business was good and based on their projections they should do a pretty solid 1.50-1.55 share. So they are only at 12 PE forward. And DIIG if 1.85 in 98 is correct is also 12 PE forward so it is being treated as a board maker when it is much more and you would think get a higher PE. Oh well, time to sit back and watch. Rich