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

To: Asymmetric who wrote (1516)	5/15/1998 9:03:00 PM
From: kolo55	Read Replies (3) \| Respond to of 2542

I sure agree with substance of your comments re ACT Manufacturing What a dismal report, and conference call. They obviously don't have world class systems in place. They are talking about retrenching instead of expanding and acquiring. They are a niche player and are only last year finally tried to expand outside their regional base. The size of their inventory loss and their explanation was shocking. The only good news is that their largest customers are Bay Networks, EMC, Ascend and divisions of Lucent and Nortel; not a bad customer list. And current market cap is only $100M and they should do $300M in sales over the next 12 months; so stock price has a ton of lousy news factored in. But I don't think its a good bottom fishing candidate any more... which means the stock will probably go straight up from here <g>. I think the Top 10 predictions are mostly on base, except that they don't mention that the largest growth will be among the top 10 companies, and they don't mention outsourcing trend picking up steam, with bigger deals. The recent Solectron/NCR, SCI/HP, and Jabil/HP deals each represent in excess of $500M in annual revenues. There are probably other big blocks of business being outsourced in Europe. Amazing that they don't talk about this trend. Paul