Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: WTMHouston who wrote (3187)	3/17/1998 5:20:00 PM
From: Rosemary	Read Replies (3) \| Respond to of 6317

Troy, If we think this warning out a little: "For the balance of fiscal 1998, the Company anticipates that revenue will slow to near the level of the first fiscal quarter of the year, with a resumption of growth in the fall quarter. The Company expects lower operating income over the next two quarters resulting from lower demand for production and new product transitions for existing customers". It's not exactly the worst warning I ever read. They expect to see .49 cents for the next two quarters, that's what they earned last quarter. It's still a very undervalued price for the stock. I'm sure that we'll see heavy selling tomorrow no matter what. But this is not the end of the world warning.

To: WTMHouston who wrote (3187)	3/17/1998 5:32:00 PM
From: moose	Respond to of 6317

I think JBIL has a chance to go up tomorrow. The way they stated it is much worse than it really is. Your only talking about a 10 mill drop in rev and thats less than 3 %. Operating income can stay close to past Q on reduced inventory and increased margins ( I believe margins were up and there was no mention of pricing pressure ). Analyst can view this in many different ways and don't put too much faith in the after hours quotes. Having worked on NASD level II and for a trading firm I know it must of been impossible to get out at the end of the day. Some firms don't allow take home's and the trader must sell it no matter what the price is. Not going to loss any sleep over this until I see the close tomorrow! Good Luck!

To: WTMHouston who wrote (3187)	3/17/1998 5:49:00 PM
From: gs	Read Replies (1) \| Respond to of 6317

>>For the balance of fiscal 1998, the Company anticipates that revenue will slow to near the level of the first fiscal quarter of the year, with a resumption of growth in the fall quarter. << In the first fiscal quarter JBIL made 0.49c, it means that in the fiscal 1998 JBIL will make about $2.00. that is still 53% more than $1.37 in fiscal 1997. At $36 we have P/E=18. Based on on this P/E and "resumption of growth in the fall quarter" the downside risk is limited.