What’s Up With FLEX?
Something is bothering holders of Flextronics (FLEX) shares today.
There’s no obvious reason; I find no major news or analyst calls. But it might have something to do with this morning’s announcement of results at Sony Ericsson (SNE, ERIC). The joint venture in the latest quarter was the single largest customer for Flextronics, accounting for more than 10% of revenue according to its most recent 10-Q. Sony Ericsson said it grew handset units 18% on a year-over-year basis in the fourth quarter. According to Marketwatch, Sony Ericsson indicated that it could be affected by a more difficult economic environment in 2008.
The Street seems split on the implication for FLEX from Sony Ericsson’s results. Credit Suisse’s William Stein write that the numbers are “a small negative for Flex.” He notes that shipments of 30.8 million units in the quarter were light of the consensus of 31.5 million. But Bank of America’s Jeff Walkenhorst finds the Sony-Ericsson news to be “a slight positive” for the company that could “assuage some investor concerns.”
Or maybe note. FLEX today is down 62 cents, or 5.7%, at $10.18.
dump (FLEX) and buy Deswell (DSWL) at least deswell pays you a dividend and has a small float and growth potential unlike a bloated FLEX to many shares on the street for flex to move higher!!!!
Investors are ignorant of the fact the Flextronics with Sanmina acquisition is a profit generating machine!! 20% revenue growth guaranteed as contracts are set in stone. Earnings at tt the end of the month will send FLEX to $15+ with ease.
Solectron acquisition - Sanmina is next on their plate.
John, not sure about your outlook on DSWL. Their profits dropped 50% last quarter. Sure go for the devidend, watch the insiders as they dump while you buy. Better off with a CD if dividends is your motivation.
Buy and hold FLEX, way better upside. Just look at their financials.
Ethertronics acquires Flextronics design center in Sweden
Monday 01/21/2008 1:10 PM ET - Datamonitor
I wouldn’t expect to see a bump in Flex stock anytime soon. After buying Selectron and firing over 100,000 employees, they are just trying to make revenue. I’d expect a drop down to atleast 9.20, I wouldn’t expect it to go below 9. Most likely won’t see a significant increase till late summer, early fall and only hovereing between 9-14.
FLEX will be up by next week by at least 9%
Great numbers and great projection. I believe a real number for this stock is 15. It closed at 11.60. Tomorrow it will increase again trew 12. The key number here is 13.60 which is 52 week high. Once it breakes that number then that number becomes new support. Shortly after that 15 plus is in touch. Probably all should happen by end of feb 08
So I was a day off now threw 12 at at 12.15 goinh higher next level trew 13 a break threw there brings us to higher highs
Tech Trader Daily is a blog on technology investing written from Palo Alto, California by long-time Barron's West Coast Editor Eric J. Savitz. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields.
