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Technology Stocks : Flextronics International (FLEX) -- Ignore unavailable to you. Want to Upgrade?

To: kolo55 who wrote (685)	6/2/1998 10:11:00 PM
From: John Morelli	Read Replies (1) \| Respond to of 1422

I am concerned about the repeated bouts of volatility that we have seen (assuming its over for now). I don't claim to fully understand all the reasons for the extreme volatility but over time I would expect this sectors volatility to decline. I think the following issues are relevant: Investors become more familiar and therefore confident in the sector's investment story. I think the sector is still relatively young and investors are concerned about many aspects including the sustainability of the high growth/profitability (therefore at the first sign of trouble they exit). ECMs attract more coverage from leading brokerage firms such as Merill Lynch or Goldman Sachs who will provide credible comprehensive coverage i.e., improving the level of information and removing uncertainty. ECM firms continue to grow and increasingly show up on "large cap" screens and likely attract more institutional (i.e., professional) investor following. I think we would all benefit from less volatility (which in itself may generate more investor interest from those who typically avoid high beta stocks). JMHO

To: kolo55 who wrote (685)	6/4/1998 9:40:00 PM
From: patroller	Respond to of 1422

Paul and all it's offical I'am back in ,I can't believe I got a second chance and at a better price than when I sold ,so you all keep me posted about things as you see it.patroller

To: kolo55 who wrote (685)	6/8/1998 12:05:00 PM
From: 18acastra	Read Replies (1) \| Respond to of 1422

Flextronics upgraded to Strong Buy by Alex Brown this morning. Also of interest another potential near-term catalyst for the stock: Flextronics has about $.20 of goodwill ammortization flowing into its P&L. The $2.40 EPS estimate for this year is really about $2.60 on an adjusted cash EPS basis. None of the other large public companies in this sector (JBL, SCI, SLR) have a material amount of goodwill amortization in their EPS numbers. Unfortunately, people on Wall Street are somewhat lazy/indifferent about breaking out goodwill ammortization from Flextronics P&L to get them on an apples to apples basis with their publicly traded comaparables. People should really look at Flextronics at $2.60 cash EPS to make it comparable to its peers. Here is a potential catalyst to get people to do that: Celestica will be IPO'd in about the next month. Apparantly, Celestica has a bunch off goodwill ammortization going through their P&L. The only way Celestica can get a reasonable valuation in their IPO is to get investors to look through the goodwill ammortization by using a theoretical cash EPS number. If Celestica is succesful doing this, I suspect investors will become more aware that Flextronics has a similar goodwill ammortization number and will be willing to think about their earnings on a cash EPS basis as well. If that happens, it will be very good for Flextronics stock. 18x (current multiple) an additional $.20 of EPS gets another $3.60 in share price. My opinion.