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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jack of All Trades who wrote (10709)	6/26/1998 4:02:00 PM
From: Jenna	Respond to of 120523

HDCO..I used to follow that one. Stochastics are really low and the company looks like it's got a better outlook next quarter. HDCO is one of those 'how low can it go' companies, but unlike the oils service sector which is in freefall, I don't feel HDCO will make any further lows. I'm not too familiar with HDCO, but JBL is in the same sector.... .....This imperative to outsource is stronger than ever. The contract 20% of yearly electronics manufacturing, but it is gaining share each electronics manufacturing industry currently accounts for only 15% to year thanks to frequent inventory corrections as well as the more recent specter of the Asian contagion. Hadco currently trades at 5.8 times trailing cash flow, or earnings before interest, taxes, depreciation and amortization (EBITDA), which in light of the company's 16.5% EBITDA margins (that are closer to pure backplane manufacturers than PCB companies) makes for a cheap valuation. In addition, the company trades at a sales-to-enterprise value ratio of 0.61, which is also a substantial discount to the 0.85 average for the PCB companies. It would seem that despite Hadco's 6x interest coverage, investors are unduly worried about its debt load. If you interested in keeping this company LONG TERM it would probably be worth your while.