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Technology Stocks : Sanmina Corp. (SANM) -- Ignore unavailable to you. Want to Upgrade?

To: rich evans who wrote (80)	1/16/1999 11:49:00 AM
From: kolo55	Respond to of 239

Sanmina is now part of the Nasdaq 100 index. It was added at the beginning of the year. I don't know if many funds use this index, but perhaps some of yesterday's rise can be attributed to index buying. I suspect the buyers of Sanmina also are anticipating that they will pick up a lot of the new outsourcing coming, especially from telecom. So I suspect the revenue growth and EPS estimates are too low for a lot of companies in the sector. Since Sanmina has one of the best margins, its getting a lot of attention from buyers who like to concentrate on that metric. Finally, its pretty clear that the mo guys are moving into this sector big time. If they use the same rationale as they've been using in the internet sector, then they could buy all the leading players, and bid the prices of all the stocks up well beyond normal PEs and PSRs. Seems like a lot of guys are now trying to use my growth sector method of investing (see my profile). Hadco is a very different bird than Sanmina, and I agree the recent 'counter trend sell-off' there doesn't seem to make a lot of sense- I'll post on the Hadco thread, and lets discuss it there. Still, I agree with your recent comments on the ECM thread; we are now close to entering the 'bubble stage' of this sector move. Paul