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

To: kolo55 who wrote (984)	12/17/1998 11:42:00 PM
From: Paul Senior	Respond to of 1422

Hi Paul. I don't understand how these Swedish manufacturing plants could be anything other than high margin or high tech. That is, I don't understand how anyone could profitably manufacture anything competitively given such high tax rates and my assumption that Swedish manufacturing and ancillary support workers probably have decent salaries and maybe better benefits than even US workers. (Of course, it could be just my lack of understanding. An HBR article few years back on Swatch Watches showed how Swatch could do it... But I am suspicious with ECMs) Paul Senior

To: kolo55 who wrote (984)	12/18/1998 3:01:00 AM
From: P. Ramamoorthy	Respond to of 1422

Industrial automation market is huge and diversified. Flex can grow (laterally) in manufacturing the state-of-the-art electronic components (sensors or the associated electronics that sends signal to the control system computer). Thermocouple, RTD's, pressure sensors, level sensors, humidity sensors, emissions detectors, flow sensors, mechanical movement sensors, composition sensors (infrared, Ultraviolet), etc. The list continues. A recent trend is to control and optimize the plant using real-time data. New electronic sensors (thin silicon wafers) are here to replace traditional devices like pressure (Bourdon) gauges, thermocouples, flow meters, etc. Motorola, Texas Instrument, GE, etc. make some of them. FLEX can contract to make these for them. Foxboro, GE, Honeywell, Square D, Allen-Bradley, Siemens, Fisher-Porter, etc. Sensor market is in Billion $. Associated electronics should be comparable. ABB is a good company. Ram