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Technology Stocks : HDCO - Why sudden dip? -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (549)	1/25/1999 10:57:00 AM
From: kolo55	Read Replies (1) \| Respond to of 572

Well, Hadco continues to slide... But looks like the rate of decline is decreasing. I was too quick to pull the trigger on this slide. We should get some readings this week on how the circuit board biz is going. But we still have the worry that RS knew about some company specific problem at Hadco. I don't think they did, since they didn't drop the rating from their highest rating to market performer, but only one notch to long term accumulate. And I think that probably is an accurate rating. Sometime in the next 2-3 years this company will be on-track toward another $3-4 earnings year. Give them a peak multiple of 20, and a very reasonable upside target is 60-70. I think RS downgraded based on price (40+), and based on some industry trends that showed some weakening in board sales. The stock is down 30% since the downgrade, and I suspect is forming a bottom, especially if industry trend indicators show stronger board sales in the future. If someone wants to help out, check this site daily for the IPC December book to bill ratio that will come out this week: ipc.org I will be in Europe for two weeks starting Thursday. Paul