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

To: Sam who wrote (1805)	10/5/1998 1:17:00 PM
From: patroller	Respond to of 2542

Sam I wouldnt worry about jabil,and flex is also in good shape,its just a market thing, that stops people from buying,the truth is that we are lucky to be in a growing industry,cause the street seem to think there isnt any,I'am trying to keep some powder dry and iam buying a little flex today.patroller

To: Sam who wrote (1805)	10/5/1998 2:07:00 PM
From: kolo55	Read Replies (3) \| Respond to of 2542

FLEXF under 30 is a great buy. They are throwing out the ECMs with the networker/telecom stocks today. At 29, FLEXF is selling at about 9 times forward 12 month earnings. My guess is anyone who buys in here, could see a nice pop after the October 22 earnings release. This is based on FELXF management's bullish statements made in September. The volume on this sell-off is puny. I bought some FLEXF this morning. JBL is holding up better due to the earnings release tomorrow. SLR is getting pounded, and SANM and SCI are getting hit again. SANM and SCI will take some patience, but I suspect these prices will look pretty good in six months. I don't buy the line that the ECMs should sell off if Cisco and Dell correct. Cisco and Dell are selling over 40 times forward earnings and will grow less than 30% per year. The top tier ECM stocks will grow over 30% per year due to the outsourcing trend, and many are now selling at 9-12 times forward earnings (excepting SLR which still has a 'rich' multiple). Anyone who shorted SLR over 50 and bought FLEXF/JBL below 30 are going to do very well over the next three months. Paul