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

To: patroller who wrote (1555)	5/30/1998 11:35:00 PM
From: jeffbas	Read Replies (1) \| Respond to of 2542

I totally agree. Furthermore, I believe that any one major ECM is actually a better investment than any single customer. The ECM has two things going for it that the customer does not. It produces for an assortment of companies, which inherently adds stability, while pretty much growing at the average growth rate of its customers - except for the second thing which is the overlay of the trend toward outsourcing, which should actually result in a higher growth rate than its customers. Thus the ECM seems to me to offer more stability, a higher growth rate and a lower P/E than its customers. One last point. It is becoming increasingly clear that these companies have gone from being "overflow" manufacturers to where they are becoming strategic mfrs for the world's major companies.