Caroline, I will bet that Fenton cites something like A/R being a problem. He is just spewing garbage. Normally I listen very closely to the skeptics, but Fenton has never really offered anything of substance about JBIL. I fou follow his picks, he is 1 for 4. He advocated buying PSIX at 8, now at 5 3/4, shorting AOC at at least 50, now at 55 and still climbing, at buy ABTE at 9 or 10, now at 7 1/4. He also advocated shorting JBIL at 44 or so pre-split. The stock went to 140 presplit before coming down. So if you choose to listen to Fenton, be careful and do your own DD.
You gave the CC number so I assumed you listened to it. What was your impression? Mine was very positive and the questioners seemed to go away with confidence. New client Gateway added, though it won't be a 10% customer for the foreseeable future. It still represents progress and it is good that new contracts are being added as it will spread their risk around.
Here is some more food for thought!
=Electronics Contractors Up;Outsourcing Trend Cited
Dow Jones News Service via Dow Jones
By Nancy Fonti
NEW YORK (Dow Jones)--Shares of electronics contract manufacturing companies
rose Wednesday, boosted by the heavy outsourcing trend among original equipment
manufacturers and solid earnings reported by two companies in the industry,
analysts said.
Shares of CMC Industries Inc. (CMCI) recently traded at 11 1/2, up 3/4 or 7%,
on Nasdaq volume of 44,900 shares, compared with average daily volume of 65,300.
Shares of Hadco Corp. (HDCO) recently traded at 47, up 3 or 6.8%, on Nasdaq
volume of 214,899 shares, compared with average daily volume of 377,800 shares.
Sanmina Holdings Inc. (SANM) recently traded at 65, up 3 13/16 or 6.2%, on
Nasdaq volume of 765,300 shares, compared with average daily volume of 454,600
shares.
Because there is some uncertainty in the end markets for technology companies,
OEMs such as Hewlett-Packard Co. (HWP), 3Com Corp. (COMS) and International
Business Machines Corp. (IBM) see greater benefits from outsourcing, said Keith
Dunne of BancAmerica Robertson Stephens.
Analyst Jeffrey Lin of NationsBanc Montgomery Securities agreed and added that
outsourcing helps OEMs protect profit margins, manage inventories and produce
products more efficiently.
Lin estimates that the electronics contract manufacturing industry is growing
annually by about 25%, while the electronics industry has an annual growth rate
of only 8% to 10%. "These companies can do well even if their customers aren't
doing well because their market share is growing," Lin said.
Analysts said industry stocks also were boosted by strong earnings reported
recently by Jabil Circuit Inc. (JBIL) and Solectron Corp. (SLR).
On Tuesday, Jabil reported first-quarter earnings of 49 cents a share,
compared with year-ago earnings of 23 cents a share. A First Call consensus of
nine analysts had expected the company to earn 48 cents a share. Jabil's stock
recently traded at 42 3/8, up 4 3/8 or 11.5%, on Nasdaq volume of 2.6 million
shares, compared with average daily volume of 1.2 million shares.
On Monday, Solectron reported first-quarter earnings of 38 cents a share,
compared with year-ago earnings of 29 cents a share. The earnings missed an
estimate of 40 cents a share by a First Call consensus of 12 analysts.
In an interview with CNBC on Tuesday, Chief Executive Koichi Nishimura said
the company missed expectations because of investment in infrastructure, not
because of the Asian currency crisis.
Shares of Solectron recently traded at 36 7/16, up 11/16 or 1.9%, on volume of
483,900 shares, compared with average daily volume of 584,100 shares. The stock
closed Tuesday at 35 3/4, up 6 or 20.2%.
-By Nancy Fonti; 201-938-5171
(END) DOW JONES NEWS 12-17-97
11:46 AM
-0- 11 46 AM EST 12-17-97
:TICKER: CMCI COMS HDCO HWP IBM JBIL SANM SLR
:SUBJECT: TLCM SEMI CA FL MS NH NY STK COMP INDG
Copyright (c) 1997 Dow Jones and Company, Inc.
Received by NewsEDGE/LAN: 12/17/97 11:45 AM |
