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

To: WTMHouston who wrote (3463)	3/30/1998 2:16:00 PM
From: Nevin S.	Respond to of 6317

i.e. comparison to disk drive sector - this might be stretching things a bit. Overcapacity? No one's mentioned a competitive situation stemming from over capacity. Falling ASPs and dumping of excess inventory below cost? Order push-outs, flat to declining volume no mention of price wars or allegations of dumping below cost. Product transitions, shortened product cycles and obsolescence? None of the above affect companies like JBIL. Order volume, manufacturing capacity and execution. We know order volume will be down although this doesn't have anything to do with profitability of JBIL's customers - just unit volume. Manufacturing capacity - none of the major ECMs have hinted that an excess of manufacturing capacity exists. One of the risks HDCO cites in their 10K (somewhat dated) is the ability to add capacity in a timely fashion. Execution and Management - JBIL has executed flawlessly in the past and that is worth something to an investor like me. There are lots of companies out there that have great products but mediocre management, some even manage to make money in spite of themselves.