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

To: rich evans who wrote (1378)	3/23/1998 7:19:00 PM
From: 18acastra	Read Replies (1) \| Respond to of 2542

PSR is much higher, about ~80% of this years forecast. Hadco has ~70% PSR ratio and EBIT margins of about 12% versus the 6.4% Merix just reported. By the way, Merix has $154mm valuation (6.3mm shares * $21 share price + $22mm net debt). My whole point is Merix is getting more than full credit for achieving Hadco's EBIT margin, and they are only halfway there and Hadco has great track record, is scale player in industry and should in best margins (huge economies of scale, good manufacturers operationally) while Merix has spotty track record and is significantly smaller. I just don't get it. My opinion.