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Author: JTchart Big gold star, 5000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 551  
Subject: An Interesting Speculation Date: 6/9/2005 3:58 PM
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I see FLEX as an interesting speculation. I have read some encouraging comments from an analyst and like the idea of investing in this type of company. This company makes money on a Gross Margin of around 7%, although this metric has been rising from 5.4% in F2003 to 5.7% in F2004 to 6.8% in F2005 and the projection for fiscal 2006 is 7.2%. Revenues have also been increasing, and are projected to be around $17 billion in F2006 (fiscal 2006 - year ends in March).

Current Analyst estimates are for EPS of 82 cents for fiscal year 2006 and $1.02 for fiscal 2007. In the last fiscal year ending in March 2005 EPS was 66 cents. That is roughly 20% earnings growth for the short-term. Another positive factor is that there seems to be a trend among companies with strong brand names to outsource the production of actual products to "contract manufacturers" like FLEX, and I would expect this trend to continue.

John :-)

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