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

To: BenYeung who wrote (2898)	3/9/1998 4:11:00 PM
From: Rob L.	Respond to of 6317

Ben, are you buying here? I like it in the mid 30's before I re-consider it. This is too volatile for me though. i like the Blue chips (MRK, LU, TRV). Check out TAVA and ABTE. Both are holding up very well lately.

To: BenYeung who wrote (2898)	3/9/1998 6:28:00 PM
From: 18acastra	Read Replies (2) \| Respond to of 6317

Don't think this move is caused by MM's (especially of this magnitude), stock (as they usually do) is reacting to news (although my opinion is reaction is overdone completely) News Item 1) Merril Lynch downgraded Solectron today from buy to accumulate. They believe the demand for electronic equipment is slowing. That is why whole sector traded off. Are market makers picking on 5-10 companies at once? News Item 2) Compaq earnings miss and inventory in channel, potentially leading to slowdown in demand for Quantum tape drives, a Jabil customer. Bear Stearns downgraded Quantum today from buy to attractive, as Compaq is its largest customer (10% of sales) and they believe there could be related slowdown in demand for Quantum tape drives as channel clears. This is why Jabil traded down more than the rest of the group - a double whammy. Ben, be serious. Jabil traded 3x its average daily volume today. Did the market makers force people to sell? It was simply panic selling, like we have seen happen to the stock before. Selling begets selling. The one thing I will say relative to the MMs is they can exacerbate the volatility as they have to keep the spread wide to keep from getting burned. The process feeds on itself. Anyway, my opinion is this thing is completely overdone. As to Merrill downgrade, slowdown in electronic equipment demand certainly doesn't help, but these guys grow from outsourcing which overwhelms the unit issue. As far as Quantum goes, it may be an issue, but at this valuation on a P/E basis and the fact that Quantum is small% of Jabil shares, my guess is they are fine. We will just have to wait & see when earnings come out. My opinion.