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Technology Stocks : Jabil Circuit (JBL) -- Ignore unavailable to you. Want to Upgrade?

To: ccryder who wrote (1983)	12/5/1997 3:13:00 PM
From: Rob L.	Read Replies (1) \| Respond to of 6317

CCryder, that is the problem I am worried about. JBIL is building its capacity very quickly at a time when industry growth is slowing. Coms has a very big inventory problem so I would suspect that order for JBIL from Coms would decline sharply. Since Coms is JBIL largest customer at 21% of revenue, earnings and margins will have to be hit and hit hard. It will be too expensive for JBIL to carry significant inventory so to move it quickly it will be forced to cut prices. Right?

To: ccryder who wrote (1983)	12/5/1997 3:53:00 PM
From: patroller	Read Replies (1) \| Respond to of 6317

ccryder I'am sure that it happen's to jabil's customer's all the time and sci or slr's for that matter.let's be clear jabil does'nt make modem's for 3com so let's look at what they do for csco and com's which is router's and such high end product's,jabil make's competeing product's right next to one another I'am sure that they each get the same priceing and their happy as long as their cost's are the same.You might notice that their close in term's of biz 23% com's 21% csco last quarter.I would think that com's would like to keep it's share of cap.JMHO Patroller PS Rob don't worry so much you don't own a dime's worth relax you can worry all you want when you invest.