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

To: Edward Scott who wrote (553)	2/19/1999 2:39:00 AM
From: Big Papa	Read Replies (1) \| Respond to of 572

What happened to all the participants on the Hadco Message Board? Did you guys and gals take your profits and run? Both the Yahoo and SI Investor message have been dead for quite some time. Earning came out a few days ago and no comments.....Markets collapsed yet HDCO remained standing and no comments. Am I just yelling into an barron wasteland? Some one respond, please. HDCO was up today to 33 5/8 and has been strong in the last few days despite the raging turmoil through all markets. I really miss reading comments from Paul K. Where are ya, dude? Paul should be back from Italy by now. Someone go find him!

To: Edward Scott who wrote (553)	2/20/1999 11:49:00 AM
From: rich evans	Read Replies (1) \| Respond to of 572

Hdco's business is back but its margins are not which seems like a new era for them marginwise. They specifically said that they would not do 17% gross in Q4-too agressive.Their continued losses at the east coast tech center, Austin, and Malaysia keeps margins under pressure as well as their lack of QuickTurn-Prototype business as they are basically a volume shop and dont get the margins of PGTZ which are 17% or Multech which are in the 20s. Also they have no pricing power with customer the likes of SLR, and CLS, CPQ and competitors like Viasystems and Asia(Compeq) which Andy mentioned. But if market demand holds up and the loss areas are turned around and with 20% growth even at lower margins they could get tomaybe 6% operating next year . But they have 30 million in interest (3%) of revs and their tax structure is high at 38% so net margins in my opinion are way down to the 2% level if all works well.The company confirmed the analysists estimate as comfortable for this year so we are about 23 time earnings right now . Not rich but not cheap either. This company as an investment has been an egnigma for me and continues to be so. Even wqith the outsourcing of the innerlayer which they had to do their gross margins would still be only about 14+% Rich