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

To: jbe who wrote (1416)	4/3/1998 4:13:00 PM
From: Larry Unger	Read Replies (1) \| Respond to of 2542

With all the outsourcing going on, companies like SCI must build additional capacity to take on this business. Therefore, capex has got to increase at a much higher rate initially, then the earnings will follow once the new programs ramp. If you have time, compare this ratio to the other ECM players and let us know how everyone stacks up.

To: jbe who wrote (1416)	4/3/1998 6:33:00 PM
From: David Lawrence	Respond to of 2542

JBE, You may want to revisit the issue of CapEx. SCI has been doing a lot of expansion, domestic and international, both new facilities and acquired assets. A bullish statement by management for the long term, which I agree with. I see nothing that will slow the trend towards outsourcing.

To: jbe who wrote (1416)	4/4/1998 12:43:00 AM
From: Paul Senior	Read Replies (1) \| Respond to of 2542

Jbe: I'm gonna give you the advice you need, not the answers you asked for: If you have a method of investing then follow it man! You say you bought primarily because of good (free) cash flow (and that's how you invest), but now the situation has changed with these companies? So if the reason for your buying and owning these stocks has changed, GET OUT! Now, when ECM stocks are down, NOW you decide to check up on your investments?? Jeez: How many times are you going to repeat the Oxford experience? You plan your work, now work your plan! Follow your method! (Not saying I agree with the cash flow method you use, but rather that it's obvious the sell-point decision-making is incongruent with it.) Paul Senior