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

To: kolo55 who wrote (1466)	4/25/1998 1:23:00 PM
From: patroller	Respond to of 2542

Paul lets talk about emc's buying plants from the oem's ,one of the concerns I've just thought of is ,x buys a plant in denver gets 5years of biz to go with it,labors higher their so in a few years the oem is looking to shift this to a lower cost area like mexico ,the other thing that concerns me it in order add biz to that plant to make it profitable their margins get smaller do to labor cost.I think we need to be concerned about labor cost in the area the our ecm is building its future.Like the sci deal ,is this a good deal long or short term.I t would be nice to know how the differnt areas stack up.Their is lots to add to the above and Iam sure see to it that we consider everything thanks in advance,I exspect lots of deals coming up and Iam sure were all up to the task.I would sugest a rateing of 1to 5 for the companys purchases patroller

To: kolo55 who wrote (1466)	4/25/1998 1:30:00 PM
From: jeffbas	Respond to of 2542

Paul, you may recall I raised that same cost issue quite a while ago in connection with FLEXF purchase in Sweden.

To: kolo55 who wrote (1466)	4/27/1998 6:10:00 AM
From: Asymmetric	Read Replies (2) \| Respond to of 2542

Lines of Battle Are Murkier Than I Thought. Thanks for the correction regarding Nokia/Ericsson outsourcing efforts to SCI, Flextronics, et al. Here's link to article on upcoming H&Q conference. sjmercury.com With the following excerpt: Posted at 4:39 p.m. PDT Sunday, April 26, 1998 *Reading tech tea leaves at H&Q* April 27, 1998 BY ADAM LASHINSKY Mercury News Staff Writer TECH STOCK investors once liked to repeat a simple investing maxim: Buy 'em at the AEA, sell 'em at H&Q. The loading-up signal was the American Electronics Association annual financial conference in the late fall, and the time to bail was at the Hambrecht & Quist Technology Conference, which begins Monday in San Francisco. Like many chestnuts, this one doesn't necessarily work anymore. With a handful of tech segments already in the dumps -- don't worry, we'll come back to the anything-but-dumpy Internet group -- it isn't likely the whole sector is heading for a traditional summer slump. Or is it? Signals from a handful of prominent tech-stock soothsayers, including some normally unsure how to spell the word ''sell,'' are decidedly downbeat. The man of the moment is Bruce M. Lupatkin, research director for H&Q, who'll be shepherding the conference's 300-plus presenting companies. Lupatkin surprisingly is gloomy for a man with a legion of sell-side analysts working for him. He warns especially to stay away from companies associated with personal computers, including the dreaded PC makers themselves. ''There's the promise of a second-half rebound,'' Lupatkin says, referring to favorable comments Intel Corp. (Nasdaq, INTC) has made recently. ''But I believe we've heard that promise for three years now.'' As such, Lupatkin advises that ''it's a little too early to get involved'' in stocks of companies that make or distribute PCs, disk drives or commodity microprocessors. That includes contract manufacturers focused on the PC industry.