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

To: AlienTech who wrote (3317)	3/18/1998 5:19:00 PM
From: Douglas V. Fant	Read Replies (1) \| Respond to of 6317

Alientech, CEO Sansone went to great lengths to explain that it was "the fear of a slowdown" and not an actual slowdown from JBIL's customers such as DEL and GTW. Sansone was (correctly IMO) assuming that Compaq, a company that carries inventory would have to cut prices and dump inventory, and ipso facto, that should impact JBIL's customers too- even thought they hold no inventory and are "just-in-time" producers of computer goods. So he thought the sales by Compaq would depress demand from JBIL's own customers for a quarter or two. In fact Compaq announced such sales yesterday- which is good. In fact CPQ rose today on the strength of this announcement which will clear their inventory... Bottom-line though Sansone said that this industry will keep growing revenues\eps at a 30-35% clip- just like it has over the last 15 years... And he called the current issues with boxmakers just a "blip" on this tremendous long-term outsourcing trend... Sincerely, Doug F.