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Technology Stocks : Flextronics International (FLEX) -- Ignore unavailable to you. Want to Upgrade?

To: Judy Muldawer who wrote (642)	4/13/1998 11:44:00 PM
From: John Morelli	Respond to of 1422

In a short while (haven't got the exact date yet)FLEXF will report Q4 earnings. I've noted in the past that FLEXF runs up prior to earnings release and then either stalls or falls back after earnings release. We may be seeing the same pattern again.

To: Judy Muldawer who wrote (642)	4/14/1998 4:31:00 PM
From: John Morelli	Read Replies (1) \| Respond to of 1422

Yes I think $60 is quite feasible by year end. Assume by Nov./Decemeber it appears likely that FLEXF can earn $2.40 for this year (I think that's the consensus estimate although if I remember correctly Paul K. mentioned that these estimates might actually be upgraded). That means the next year's estimate will be roughly $3/share which at that time will have greater visibility. With a PE of 20x that means $60 by year end (assuming the overall market is accommodating). I'm still hoping that the whole ECM sector because of earnings growth potential over the next several years will experience a little PE multiple expansion i.e., a PE of 25, and therefore $75 by early next year. Lets hope M. Marks doesn't say anything when Q4 results are released to deflate earnings expectations.