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

To: Ron Kory who wrote (1325)	3/14/1998 4:27:00 PM
From: Creditman	Respond to of 2542

I agree with everything you say. Sanmina has always been traded at a premium. I've heard it said that it is because they "never miss their number". They are pretty good at the P\R game too. ELEX had earnings and was trading at 18x when SANM bought them effective I believe in November. Part of the attraction was supposed to be the conversion of the ELEX earnings to the SANM multiple. Both are top notch companies and both companies will succeed in the shrinking PWB, back panel world.

To: Ron Kory who wrote (1325)	3/14/1998 6:07:00 PM
From: rich evans	Respond to of 2542

I think HDCO and SANM are in different businesses because of degree and shouldn't be compared directly. HDCO is primarily a board manufacturer and sells these boards to others for most of its profits and revenues. Last quarter out of 198 mill in sales only 19.2 was in backplanes assembly. SANM on the other hand is primarily into backplane assembly and makes its boards for its own use. Margins in backplanes are high in about the 10% net range. Board manufacturing is lower in the 6-7% range.But assumed growth for SANM is 30%.But I do agree that the difference in valuation is not justified and HDCO seems like the better buy at a 10P.E. versus SANMs PE of 25. ALSO SANM is close to 2.5 PSR while HDCO is .66 before figuring in the CCIR deal. Rich

To: Ron Kory who wrote (1325)	3/14/1998 6:30:00 PM
From: Douglas V. Fant	Read Replies (2) \| Respond to of 2542

Ron, Greetings-I'm in HDCO as a value play. The reason for HDCO's price slide I am guessing is that Hadco needs to assimilate two acquisitions- CCIR of late and Zirkon from last fall. Also Hadco is opening its first plant overseas, in Malaysia. So there are unknowns as to whether these three items will fall into place. That said, I agree HDCO looks undervalued here- so I bought a few shares..... Sincerely, Doug F. P.S. You probably already know that "Kory" in Arabic means "priest"....