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

To: William Nelson who wrote (4639)	10/21/1998 1:18:00 PM
From: Frank Drumond	Read Replies (1) \| Respond to of 6317

>On the flip side, there's a reason companies want to dump manufacturing. It's low margin and gets killed at cyclical dips.< The real issue is what is the company in business to do. Companies like HP are really oriented towards designing, developing and marketing products. Manufacturing isn't really the value add that they want. Also, contract manufacturers don't make one product line or products for a single company or sector. When HP sets up a line in Loveland Colorado to make PCB test equipment the use of that production facility is at the mercy of how well HP is selling PCB test equipment. Contract manufacturers just aren't as exposed to downturns in sales of a single product line. It hurts sure, but chances are there is other business to take up the slack or at least eliminate the risk of a whole department having nothing to do...