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

To: 18acastra who wrote (1676)	8/16/1998 2:38:00 AM
From: Trader Ric	Respond to of 2542

To all: Take a look at the five day charts on yahoo for the last week on SLR, FLEXF, JBL, SCI, & DIIG. The intra day movement shows the same pattern on each of the five days for each stock. This suggests that sector issues are the primary forces at work rather than economic or individual company reasons. Comments?

To: 18acastra who wrote (1676)	8/16/1998 3:57:00 AM
From: Trader Ric	Read Replies (1) \| Respond to of 2542

To all: Take a look at the five day charts on yahoo for the last week on SLR, FLEXF, JBL, SCI, & DIIG. The intra day movement shows the same pattern on each of the five days for each stock. This suggests that ECM sector issues are the primary forces at work rather than economic or individual company reasons. My opinion is that as the pace of the outsourcing trend for the upcoming year becomes more clear all of these stocks will move togeather. In the current competitive environment the OEM's are shopping around for the best deal and could easily delay their conversion to contract manufacturing for a variety of reasons. Bets by the institutions suggest to me across the board bets at or near the support levels. Optimism seems muted. Signs of strength in any part of the sector should lift all stocks and start a trend up. After that the stocks will begin to differentiate based upon which seems to be getting the largest slice of the growth. I will be bargain hunting until at least one stock breaks into a clear upward pattern. Downward risk seems to be minimal unless in options as I doubt if this softness in the ECM's Earnings will last very long.This is because growth in overall electonic manufacuring will be reflected proportionately in their existing business plus the bonus of the outsourcing trend. The patient investor should beat the brilliant investor in this sector until the climate changes. For now I will watch this thread and related ones for a CLEAR SIGN of any part of this sector coming back into favor. This will remain my favorite sector for the forseeable future because the inevitability of another growth spurt in which sector earnings double in a years time. Short of a worldwide recession in technology this sector is as sure a bet as I've seen in 20 years of investing. The timing of it seems presently unknowable by anyone. Comments?