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

To: paul kneitz who wrote (779)	9/9/1998 1:04:00 AM
From: kolo55	Respond to of 1422

Looks like new computer contracts worth $500M coming. Here is an article on Flextronics published about 10 days ago. techweb.com Marks projects that, by year-end 1999, computer manufacturing will account for about 25 percent of sales. The company now boasts outsourcing contracts with Hewlett-Packard Co., Compaq Computer Corp. and Intel Corp. Currently Flextronics does about 12% in the computer sector. By the end of 1999, the revenue run rate will be about $2.5B to $3.0B per year. About 25% of that is $600M to $750M, versus 12% of current revenues which is approximately $160M. So we should see something on the order of $500M in new computer assembly contracts. The HP inkjet printer assembly deal for Europe will probably be the biggest piece of this. Also about the same time (just before a 35% decline in the stock price last week), Marks made the following comments: techweb.com - Michael Marks, chairman and chief executive, Flextronics International Ltd., assessing Ingram Micro Inc.'s partnership with a competitor of Flextronics, Solectron Corp. "I think that obviously our stock is very undervalued. Market capitalization is at about less than two times revenue. We have a solid balance sheet and a pretty attractive price in the market." Hmmm... sounds like expansion as usual for Flextronics. I still can't get even a hint of what motivated the sell-off. Paul