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

To: patroller who wrote (4971)	2/20/1999 8:14:00 AM
From: Jeff Haas	Respond to of 6317

Electronics manufacturing services (EMS) company Celestica Inc. (NYSE: CLS) shed $2 1/16 to $28 after it said last night that it will sell 8 million shares for $28.65 each -- about a 5% discount to yesterday's closing price -- to fund expansion. Celestica is not the only EMS company to take advantage of firmness in the valuation of EMS companies. Contract manufacturer Jabil Circuit (NYSE: JBL) recently registered to sell 10.5 million shares with a 1.6 million share "greenshoe"; in late January Solectron (NYSE: SLR) issued $700 million of convertible senior notes (and recently called for redemption $230 million of convertible subordinated notes); and Flextronics (Nasdaq: FLEX)issued 3.7 million shares in early December. With the industry growing at a 25% annual rate due to organic growth in electronics markets and in the transfer of facilities from original equipment manufacturers (OEMS) to EMS companies, any addition to capital that can earn more than its cost of capital is going to be a value-adding move. That explains the excellent share price performance at Flextronics, which has been the most aggressive acquirer in the industry in recent years.