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

To: jeffbas who wrote (1381)	3/23/1998 7:52:00 PM
From: 18acastra	Respond to of 2542

Didn't say that, but fact that Hadco potentially overpaid already in stock. Making a relative judgment here (actually, absolute as well as believe Merix fundamentally well overvalued). My opinion.

To: jeffbas who wrote (1381)	3/23/1998 10:42:00 PM
From: IRWIN JAMES FRANKEL	Read Replies (1) \| Respond to of 2542

A few observations about the HDCO purchase of CCIR. 1. HDCO purchasing CCIR for cash (rather than stock) is similar in effect to repurchasing it's own stock with two advantages: a. the debt can be retired at face plus interest, and b. one less competitor to go up against. 2. HDCO is again returning to a value pricing. How low it will go before turning is hard to say. I have not owned it for some time. (Bought it at $18 & sold for $55 and watched it go into the $70's) Only consolation is I turned around and bought CCIR at $11 and sold for $23. I would have preferred a stock deal since there would have been no taxes. Now I am looking to get back in HDCO but while I am willing to pay the current price ($36) the trend looks ugly and the techs are feeding the market one warning after another. Suppose this is a long way to say that I don't think HDCO over paid. They bought a good company in CCIR and it will be as accretive to the stockholders as if they bought their own stock. Managment must have thought it was better for the company. I agree. Time will tell if I am correct.