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

To: gs who wrote (2336)	12/23/1997 9:44:00 AM
From: Fenton White	Read Replies (4) \| Respond to of 6317

Garri&All; Merry Christmas and Happy Holidays; still on vacation. I bought a new set of PING Nickle Irons; they look great, feel great, but they have not helped my game. Oh well, practice, practice, practice. In response to your question: JBIL is not a retail operation. All they do is make components. They are only in business if they provide components with price structure less than 3com or hp could build them for. What is the book value of JBIL? That is what it cost to build the infrasturcture (plant and equip). What type of premium would you pay for inventory control? Price competition is going to increase and component margin will continue to decrease for the next 6 to 9 months. How much would you pay for the company? How much over book? How many years do you want your money tied up in a business that will have shrinking margin? Would you increase or decrease your multiple because the company order stream is at risk? How much would you pay? HP is an end user with the chance to increase margin due to reduction in component prices. They have established a retail position and pipeline. Regards, Fenton PS I loooked at CMEL yesterday. Looks interesting.

To: gs who wrote (2336)	12/23/1997 10:24:00 AM
From: prakash	Respond to of 6317

Garri If you are running a business and if you expect the margins to go down and business is shrinking, would you consider closing some of the plants or would you consider opening up five more plants around the globe? Look, Fenton never tells the truth. He keeps telling things like A/R problems, insider selling, 3COM's dependence and much more. He will throw numbers like .30 for next quarter and raise stupid questions like why insiders are not buying the stock. We have proven him wrong in all of his claims. He got lucky with this stock and nothing more. Merry Christmas all and have a wonderful holidays. Prakash