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

To: Rosemary who wrote (3593)	4/17/1998 9:20:00 PM
From: kolo55	Read Replies (2) \| Respond to of 6317

Looks like this thread has quieted down quite a bit. I think thats bullish. A lot of the people who follow the latest hot trends have moved on (probably to the search engine stocks). Good riddance. I've been following this stock for a long time, and on Monday built my largest position ever. My guess is that management was perhaps a bit too conservative with the forward looking guidance they released in March. It appears for example, that sales of Quantum's DLT are starting to rebound after an inventory channel correction, and the networker's stocks seem to be rebounding nicely. This along with penetration into new customer accounts and new facilities coming up to speed bode well for increased top line growth. The bottom line growth may not be as strong in the next several quarters as their margin could shrink due to expansion costs and new contract startup costs. Also new contracts with Gateway and other PC makers probably carry lower margins than Jabil's traditional business customers. But if the business is still profitable with the lower margins, and it is, then on the long run Jabil will get a good ROI spent on this business sector. Finally, the Savage upgrade (with Alex Brown) means a lot to me. He is one of the best analysts in the sector (along with Keith Dunne at BARS). I suspect he sees all the bad news out, and wants to be out in front with his upgrade. The stock may not move much until the MayQ earnings report, but don't be surprised if there is some news from the company before then. Paul Off-topic: Rosemary- I don't think you need to apologize for DIIG in any sense. I remember when you, Creditman, and I seemed to be the only people on the DIIG thread in January 97 when the stock broke down below 20 pre-split. We all made over 100% in less than a year.