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Technology Stocks : DII Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Creditman who wrote (1696)	7/22/1998 1:42:00 PM
From: rich evans	Respond to of 1845

This stock looks undervalued based on these results and the cc. Things have not worked out as I assumed on my post to Rosemary # 1629 from last quarters cc but still the stock is too cheap IMO. Some interesting info from cc: Chinese are really dominating the 4-6 layer pcb market. Do you hear or see this. Multech though is insulated because it is a very high tech Q/T business with large design input and the volume Austin business is mostly under contract to IBM and also is a high layer count 6-8 high tech special plated process so no competition. So Multech is doing all right and has new customers programs coming up to fill out push outs from inventory and product transitions which slowed business. The new business models of BTO to sell through is taking over industry and this transition should be complete by end of Q3. Therefore optimistic for 99 and Q4 with forecasts in news release. But at about 1.15 for this year if Q3 is flat(conservative estimate as see uptick in first 3 weeks so far in orders booked) and $2.00 for 99 you would think the stock would be higher. My Sept 25 puts I assume will be excercised and I will own more of this stock. HP germany acquisition close in Oct and will be accretive with revs over 60 mill a year. Linked strategy working out well and all worked into sales force with cross MIS and very estatic over link strategy. Business in strong in Tele/DataCom ,steady and stable in Med and Indust but push/pull in computers ,pheripherals,workstations,computers. Have bought back 850,000 sh of 2 mill. Help with dilution from Orbit purchase where we gave away 7 mill shares for 20% dilution for nothing IMO. Orbit annual sales at 60 mill run rate and breakeven and as you know is not leading edge and in fact is doing end of program business for LSI old chips.As always Mr. Optimist thinks the estimates will be low. HP as a 10% customer is always a question though as they do many programs for HP. Inv turns are 11 which is pretty darn good. Cash position is good and they want to buy still in China and East Europe to become more global. Asia mentioned but only as effects customer OEMs. Has helped their Malaysia Plant costs. Backpanel going well but small and used in sales to service complete needs of program. See big improvement in Dov for Q4 because of inventory adjustment and new programs ramped. I guess everyone is a "Dell Computer now. Rich