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

To: Asymmetric who wrote (1458)	4/23/1998 10:31:00 AM
From: patroller	Respond to of 2542

Thanks Peter that was good,I think that SCI is a great buy,but their only showing flat earning year over year,with all those new plants earnings picture just does'nt wash going forwarded ,I hope that forward earning start trending like their pending growth,anyway from what I hear their pick up alot of biz.patroller

To: Asymmetric who wrote (1458)	4/23/1998 9:41:00 PM
From: kolo55	Read Replies (1) \| Respond to of 2542

FLEXF blows out earnings on big sequential revenue gain. Flextronics demonstrated that any weakness this sector has been having, is due primarily to the domestic or PC segments. Their revenues hit $331M up sequentially from $295M last quarter. Their telecom, networking, and consumer segments all grew, while PC segment is only 8% of revenues. EPS came in at 53 cents versus 51 cents consensus. I think next Q revenues could break $380-390M. My CC notes are at: Message 4185693 I wonder if this will have a positive impact on the global ECM assemblers tomorrow. Most of the smaller/domestic ECM players, including IECE, PLXS, ACTM, K*TEL(KNT), EFTC, etc. have reported flat to down revenues sequentially recently. Meanwhile the big revenue growth so far seems to be in international markets dominated by SCI, SLR, JBIL, and FLEXF. Today Adflex was up a point to 20 something in a down market, based on last night's earnings report that had lower sequential revenue, but had some positive comments in the conference call. SCI didn't report today, it will be interesting to see their numbers when they come. Based on the stock price action, and their preliminary news release, this should be a good quarter. Given the good news among the big players, the comments from Jabil at the last conference call stand out like a sore thumb. Thats why I believe Jabil's management were overly conservative in giving some forward guidance. I expect that Jabil's stock will join SCI and SLR back up in the mid-40s to mid-50s, and "catch-up". Maybe FLEXF will go into the leadership role. All this depends on the general market though; if it breaks down... well, who knows then? Paul