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

To: gs who wrote (2746)	2/18/1998 11:54:00 AM
From: xclently	Read Replies (1) \| Respond to of 6317

If you stop looking through a microscope and look at the longer term, JBIL is one of the most amazing stories of the last few years. I know from a direct experience (Moose, you've already heard this one.) My father got talked into buying 1800 shares around $10 by some aggressive firm. This was sometime in '94. JBIL loses some portable computer order due to parts difficulties, and it trades down to around $4 1/2. Anyway, he transfers to Merrill Lynch, and I go and have a talk with the broker, and the broker wants to dump almost everything he has (did have some junk, some XON, MRK and other quality as well) and load him up with their name brand funds. Well, I object to him selling the JBIL (and XON) and both father and broker agree to talk to me before they unload JBIL. (I had done some research, hard copy, pre-SI, and it looked promising.) I see Dad at his 50th wedding anniversary, which was held Aug '95, and say, "wow, I am sure glad I talked Joe into holding onto that JBIL, it has almost tripled from its low!" and my Dad looks like I punched him in the gut. Ends up that the broker felt that since MER didn't follow JBIL at that time, that he would sell it (at a loss, no less) and get into CPQ, which they were talking up (CPQ languished for some time thereafter before moving up.--I had just bought a house then, so had no money for investing at that time.) Bottom line: 1800 JBIL would now be 3600 shares with a cost basis around $5...now $48....almost 10 TIMES on his original investment! If you had bought near the low, your cost basis could have been ~$2.50,split adjusted. (original 200 shares of CPQ [basis~$12 adjusting for splits] now 1000 at $35, by way of comparison) O.K., if you made it this far....now that the company has become a mature contract manufacturer, what is the compelling aspect of the business. I know the contract manufacturers fell from grace last fall....can anyone tell me what possibilities or pitfalls are visible at this time? Thank you for listening....I could have paid big bucks laying on a couch in a professional office! Peter