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Flextronics - FLEX - close: 12.36 chg: -0.22 stop: 13.01

Company Description:
Headquartered in Singapore (Singapore Reg. No. 199002645H), Flextronics is the leading Electronics Manufacturing Services (EMS) provider focused on delivering innovative design and manufacturing services to technology companies. With fiscal year 2004 revenues of USD$14.5 billion, Flextronics is a major global operating company that helps customers design, build, ship, and service electronics products through a network of facilities in 32 countries on five continents. This global presence provides customers with complete design, engineering, and manufacturing resources that are vertically integrated with component capabilities to optimize their operations by lowering their costs and reducing their time to market. (source: company press release)

Why We Like It:
The SOX semiconductor index doesn't look so hot. Merrill Lynch's comments today that the sector was likely to remain range bound between 450 and 380 sparked some selling and the technicals on the SOX are growing more bearish as if the group is headed toward the bottom of its "range". Shares of FLEX were already looking weak with the stock in a six-day trend of declines. A few days ago the company could not offer much visibility at an investor conference and traders turned defensive. The current decline has broken through support in its six-month trend of higher lows. Volume on the recent decline has also been above average. The P&F chart is currently bullish but poised to turn lower. If FLEX trades under $12.00 it will produce a new P&F sell signal. Normally after six days of declines we would expect a bounce so that's why we are going to use a TRIGGER to open the play. Our entry point will be $11.95. Our target will be the $10.00-10.25 range but we will not hold past FLEX's April earnings.


Picked on March xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/28/05 (unconfirmed)
Average Daily Volume: 5.5 million
 

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