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Stocks F / Flextronics International
|Subject: Director Buys Shares||Date: 11/13/2006 12:16 AM|
|Author: ultrabrite||Number: 532 of 555|
Diplomatic Flextronics Director Makes First Buy
Wednesday November 8, 7:43 am ET
By the InsiderScore.com Research Staff
A director at Flextronics International Ltd. (Nasdaq: FLEX - News) has made his first open market purchase, picking up more than $280,000 worth of stock in the contract electronics manufacturer.
Rockwell Schnabel purchased 25,000 shares at $11.34 on November 3rd, increasing his holdings to 32,716 shares. The co-founder of venture capital firm Trident Capital, Schnabel joined Flextronics's board in February after spending the past two decades in public service. Schnabel's most recent appointment was as the U.S. Representative to the European Union from 2001 to 2005.
Not so positively, yesterday, Fitch cut its credit rating on some of Flextronics's debt. The agency said Flextronics's rating outlook remains "stable," but that margins remain a concern.
"The ratings downgrade reflects Fitch's expectations that Flextronics will continue to operate near historically low margin levels versus Fitch's prior expectations for material margin expansion for the core EMS business, and will experience negative free-cash flow likely through FY08 (March 2008) while investing heavily in expanded manufacturing capacity and working capital to support a significant expected increase in revenue. These factors are somewhat mitigated by Fitch's belief that Flextronics is at an inflection point as the company is beginning to benefit from its original design manufacturer and vertical integration strategy after several years of disappointing results which negatively impacted profitability," analysts at Fitch said.
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