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

To: Trader Ric who wrote (1678)	8/17/1998 10:33:00 AM
From: kolo55	Read Replies (3) \| Respond to of 2542

Sector definitely out of favor now. And this in spite of long term growth of 25% in this sector. I don't know why more money isn't flowing into this sector considering the valuations of other stocks. The S&P500 is trading about 24 times foward earnings, and will grow 10-12% a year. Many stocks in this sector sell at 10-15 times forward earnings and the sector is growing 25% per year. Of course this has been true for some time now, except for a period last summer and fall. I suspect we are bottoming in here; most of the bigger stocks actually set their lows last December (e.g. SLR, JBL, FLEXF), and some are still within spitting distance of those lows. The recent breakdown in SCI, after reporting poor revenue growth, is weighing on the sector. SCI is the player most dependent on the PC industry. The smaller cap issues have only recently set their lows. Paul