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

To: Douglas V. Fant who wrote (1844)	10/15/1998 4:27:00 PM
From: kolo55	Read Replies (2) \| Respond to of 2542

I find AFCI interesting as well. I attended their presentation at a conference last winter, and they presented a compelling case for growth. But the stock at 30 at that time was trading about 30 times forward earnings. At the current price, it seems that the market believes there is a significant chance this company will be driven out of business. Since most of their business is in emerging growth countries, they have been a front line casualty to the Asian flu. To get back on topic; Adflex has a deep hole to pull out of. Smartflex earnings report yesterday was underwhelming- they continued to see significant attrition in their revenues to only $20M. When I first looked at that stock, I was expecting $40M in quarterly revenues. I am not investing in this sector expecting to find companies that post declining revenues. One of the major attractions of this sector is the long term secular growth trend. The weakness in Smartflex revenues was due to problems in the HDD sector. Adflex will see similar problems. But both stocks have been punished severely. Good luck to holders who hold through these terrible times. Paul