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

To: rich evans who wrote (964)	12/13/1997 1:35:00 PM
From: jeffbas	Respond to of 2542

I frankly would be careful about buying any stock with a trailing P/E of 28 (per YAHOO). A bear market ignores fundamentals and could be looked at as a supply/demand problem in the market. It often ends when most stocks have few people with gains left in them and when they are priced as value stocks. This is still far from the case with JBIL.

To: rich evans who wrote (964)	12/15/1997 5:06:00 PM
From: kolo55	Read Replies (2) \| Respond to of 2542

Solectron Earnings are out. I posted the release on the Solectron thread: Message 2971191 The revenues grew 8.8% sequentially from last quarter, but the margin dropped to 5.9% from 6.7% and so the EPS came in at 38 cents versus 40 cents consensus. But I think the EPS shortfall has been pretty widely predicted in recent days. Much of the drop in margins came as Solectron moved into box-build (SCI type of business), which they discussed last quarter, and which has margins of about 3%. The nice sequential gain (versus 6.6% sequential gain last quarter) confirms that the growth in ECM continues unabated (8.8% sequentially for 4 Qs = 40% annualized growth). If the big guns are growing 40%, I think the middle tier players (FLEXF, JBIL, and DIIG) should be able to grow at that rate or better. I purchased more Jabil this morning at 31. More on the Solectron report later. Tomorrow Jabil reports. I expect record revenues and earnings, and that they will beat the consensus estimate. Paul