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Technology Stocks : Jabil Circuit (JBL) -- Ignore unavailable to you. Want to Upgrade?

To: Finder who wrote (4862)	1/25/1999 12:55:00 PM
From: kolo55	Respond to of 6317

Short term the news is probably bearish. But, investments are usually judged over longer time periods than a few days. Look recently at the stock price patterns for two other companies in the same industry (SLR and FLEX), after they announced secondaries in the last Q of calendar 98. Both sold off a few points, then recovered either before or after the secondary. For example, FLEX sold off on the secondary news from just below 70 to around 67, then rallied to the secondary offering price of 72 1/2. Of the 5M shares sold, 2.5M came from FLEX's largest customer. After the secondary was complete (one week later!!), the stock then climbed to 92 (46 after the split), then sold off a bit to around 38 (76 pre-split) today. The question is: "why are all these companies raising so much cash, when they already have historically strong balance sheets with lots of cash already?" Read the first part of this post on the ECM thread. Message 7469010 Paul