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

To: Creditman who wrote (1910)	11/26/1998 12:56:00 AM
From: Paul T Springer	Read Replies (1) \| Respond to of 2542

Creditman, Did you notice that CMCI went up over 50% today on BIG (for it) volume? What's up? Do you still have an interest in this stock? Paul

To: Creditman who wrote (1910)	11/30/1998 5:12:00 PM
From: rich evans	Respond to of 2542

HDCO cc I think was not reassuring. I am back after visiting ORange County and have had time to think about the cc. Revenues are returning nicely but margins and pricing continue to be the problem. All their efforts to "drive out costs" especially material costs which they mentioned are being eaten up with Pricing reductions and the Asian competitors. They refused to quantify margin expectations for the future but did say they expected incremental improvement. But I think the margins of old are not going to come back. This business has very high fixed costs and despite the leverage from higher volume and capacity utilization and reduced material etc costs there is only so much that can be done. So if you run models at reduced margins and deduct their high interest costs I don't think you are going to come out with the higher profits per share. Malaysia still not breakeven. Austin still a loss at least until Q2. Delays in consolidating the east coast tech facilities costing 4-6 cents a share. I still own a lot of this company but my expectations have been reduced.Others may have a more optimistic view which I hope is correct and would be interested in their opinions either here or on the HDCO thread. Rich