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

To: Michael Anthony who wrote (3393)	3/24/1998 10:04:00 PM
From: jeffbas	Respond to of 6317

You make an excellent point. JBIL will participate in any general market correction and is not participating in this extended recent market advance. So what is the risk in holding off buying at this time? The only case that could be made is that tech stocks are suddenly going to play catch up. I think that is unlikely as their historic style is to either be leaders or to be in trouble.

To: Michael Anthony who wrote (3393)	3/25/1998 9:14:00 AM
From: gs	Respond to of 6317

Cannot disagree more. A lot of people did not want to buy MSFT, DELL, ... waiting for the next downturn. Everyone wanted to buy when JBIL was 50+ and you say that at 32 it is expensive. It is impossible to time the market!!!

To: Michael Anthony who wrote (3393)	3/25/1998 10:50:00 AM
From: 18acastra	Read Replies (2) \| Respond to of 6317

Then buy JBIL and short = $ amount of Solectron if worried about market. Solectron has a P/E multiple about 5 points above JBIL's. Although a great company, and would not short outright, pair trade is compelling. Solectron is also growing slower than JBIL, and has lower ROE. I also believe guidance JBIL gave going forward was very conservative. Also seems like two issues that led to Jabil's slowness have been cleaned up: 1) Quantum said end user demand for DLT remains strong at 30%+, just inventory correction, so JBIL's production should resume strongly once inventory bubble gets worked through 2) 3-COM sounds like they worked through a lot of their inventory issues this Q, and things should resume to normal going forward No way this valuation disparity should exist. My opinion.