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Technology Stocks : Jabil Circuit (JBL) -- Ignore unavailable to you. Want to Upgrade?

To: OldAIMGuy who wrote (4635)	10/19/1998 9:51:00 PM
From: patroller	Read Replies (2) \| Respond to of 6317

HEY guys I took this from the yahoo tread,as I think this guy is worth reading. I have stated in the past that JBL appears to be under accumulation by "big money" and now I believe I have some evidence that goes beyond technical stuff like volume, price and block size. The technicals are one part of the pie, here is the fundemental part. (Put them together and it looks impressive.) I noted on the Conference Call that several mutual fund representitves participated as well as the usual analysts. Some of these "funds" rely on their own research as they are big enough to support research staffs. One of those caught my attention, Prudential Invesments. Prudential Investments is the Prudential Mutual Fund Family and has its own research department for the entire family of funds they manage. (Over 85 funds) I did a little research and discovered that the representitive from Prudential was on the call on behalf of Susan Hirsch who manages the Prudential Emerging Growth Fund. (A relatively new fund that came out about a year ago) After the conference call I see in a fund recap that Hirsch has indicated that she believes that companies that broaden the manufacturing capabilities of technology firms have strong growth ahead. While some technology businesses focus their resources on design and marketing as well as outsourcing, the contract manufacturers we favor, such as Jabil Circuts and Solectron, focus on prodution. We are buying into this outsourcing trend at a relatively early stage. Now that is what I mean about institutional buying. Remeber, there were other funds represented on the call. How high will it go? I don't know for sure, but I think that you could reaasonably assume that they would be willing to pay as much as 25X forward earnings considering the confidence in the industry growing at 30%, so take the $2.12 FY '99 tmes 25 and we could see $53 before too long. Another thing, I notice many analysts are already projecting earnings for FY '00, something we haven't seen too much of before. This suggests, to me anyway, that this industry is gaining even more credibility. 25 times $2.65 and you get $66.25. I'm not saying we get there tomorrow, but it gives us something to think about.