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

To: Paul Senior who wrote (936)	11/20/1998 8:53:00 PM
From: patroller	Read Replies (1) \| Respond to of 1422

UPDATE) Flextronics Shares Hit 52-Week High Amid Positive Growth Prospects Dow Jones Online News, Thursday, November 19, 1998 at 16:40 NEW YORK -(Dow Jones)- Flextronics International Ltd.'s shares hit a 52-week high Thursday amid growing investor optimism about the growth prospects of electronic-manufacturing services companies, according to analysts. Investors' confidence in the sector has been bolstered recently by the companies' most recent quarterly reports, which in some cases showed increased backlogs and other positive factors, analysts said. A top company in the sector, Solectron Corp., told analysts at a conference Monday that it expects total revenues for the electronics-manufacturing services industry to increase about 25% annually in the next few years, said company spokeswoman Lisa Werne. Solectron's stock hit a 52-week high of $68 Tuesday and has since dropped slightly. The shares (SLR) slipped 50 cents to close at $65.75 Thursday. Other companies in the industry group have traded at or near 52-week highs this week, including Jabil Circuit Inc. (JBL) and Sanmina Holdings Corp. (SANM). Investors believe that large original-equipment manufacturers, or OEM's, in the electronics industry will increase the amount of business they outsource to contract manufacturers such as Flextronics, analysts said. "It has become evident there are some very large OEMs that are going to do outsourcing that haven't done much so far," said Alex Blanton, analyst with Ingalls & Snyder LLC, referring to firms such as L.M. Ericsson Telephone Co. (ERICY) and Philips Electronics NV (PHG). Investors are realizing that the San Jose-based Flextronics and others are getting contracts to make products for which the large OEMs have no capacity, Blanton said. William Cage, analyst with J.C. Bradford, said electronic-manufacturing services stocks were sluggish throughout most of the year because of the Asian economic downturn but began rebounding in September. "We're seeing a lot of institutional investors moving into these stocks," Cage said. "...The lull hanging over the growth prospects has passed and now things are going up." Flextronics officials couldn't be reached for comment. Flextronics shares (FLEX) rose $4.313, or 7.3%, to finish at $63.125 Thursday on composite Nasdaq volume of 1.3 million shares. Average daily volume is 334,950. Earlier, the shares traded as high as $64.375, topping the previous 52-week high of $58.875. -By Peter Loftus;