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

To: Rosemary who wrote (3754)	5/8/1998 11:13:00 AM
From: John Morelli	Respond to of 6317

There are some smaller players in the industry that are not doing so well at the moment and this could provide a buying opportunity (for example ACTM or MERX ) and at the right price might provide a cost effective way to grow earnings/diversify business lines. But I do not know if their business mix/clientelle would appeal to JBL.

To: Rosemary who wrote (3754)	5/8/1998 11:32:00 AM
From: kolo55	Read Replies (1) \| Respond to of 6317

Key to ECM revenue growth is outsourcing trend. I don't think Jabil is planning to acquire a company. Jabil is probably looking at any number of deals out there at this time, to acquire a plant(s) from an OEM, along with the business. These deals are often at 50% or less of annual revenues, and historically these deals in this sector have been very profitable and the key to 30+% growth. The fact that Jabil up to now has grown without external acquisitions is quite good... but look at companies like SCI, Solectron, Celestica, Flextronics, and DII Group. They grew so quickly by purchased outsourced operations from OEMs. This model works, and some really good businesses may be getting outsourced at this time. Paul