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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Larry P. who wrote (46872)	2/13/1999 1:20:00 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Larry, I like both Sanmina and Linear as cos. and owned both when they were priced rationally and growing eps. Linear is easy. They have eps growing at 5% and a pe ratio over 40 times. They are a contract producer of components for the electronics and computer industry and will be one of the victims of the slowdown, IMHO. The co. is honest enough to admit all these problems, but the lemmings don't care. Since they are splitting the stock, that is all the ignorati need to buy. Sanmina is also a good co, this time an outsource builder of products for electronics, communications and computer cos. Like Solectron and Jabil, Sanmina is a LIFO co. When demand is high, they get more contracts. When demand is low, they get zapped with either fewer or less lucrative contracts. I think the negative growth in pc sales will impact them negatively and at 43 times eps, there is no room for very many weak contracts. MB