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

To: Rosemary who wrote (1389)	3/24/1998 11:34:00 AM
From: Douglas V. Fant	Read Replies (3) \| Respond to of 2542

Rosemary, By analogy I agree with you. Back in late 97, the semi equipment companies, and networkers, and chip makers also all got hammered a-la Asia. Indeed most of the stocks in these groups lost 40-60% of their value with 50% being the average pullback from the 52-week highs. Well, now here we are in the ECM's. I checked the charts carefully yesterday- and guess what? Most of the ECM's are down 40-60% from their 52-week highs- just like the other tech groups last fall. That suggests to me, by analogy that the ECM's are right now oversold. So I took a position in DIIG, HDCO, and AFLX, and also have a few shares of JBIL. These stocks may not spring back for a few months- butr they are great values- right now- if you look at the parallel experience of the networkers, semi equip makers, and chipmakers... I personally tend to look for such "parallelisms" when I invest and then buy what appears to be a value stock with a growth compenent. I think you've got that right here in all sorts of ECM's right now.... Sincerely, Doug F.