Friday, April 14, 2006

The Gift from Chinese President --- TEX and FLEX

TEX (Terex Corp.) and FLEX (Flextronics International Ltd.)

The Chinese President will visit US and sign some contracts with US companies soon. Among the top companies, TEX will get a 150 million contract and FLEX will get a 1 billion one.

Even though the impact of the contract won’t show immediately on those companies’ balance sheets, the big promises can still attract some attention to them right now.

TEX is heavily accumulated by institutions. It has good fundamentals. It is a good choice for conservative investors. Its closing price is $82.94. Its support is at $80.

To any company, 1 billion is not a small number. This number will make FLEX’s fundamentals looks better sooner or later. The market will welcome this change. An analyst said its current quarter earning will be better than expected for another reason. If it is true, the two good news will move the stock up. Its earning date is 4/27/06. It is good one for short and mid term investor. Its closing price is $10.78. Its support is $10.

My suggestion:
TEX: Buy (7)
FLEX: Buy (7)


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