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   Technology StocksTECD - Tech Data


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To: Steve Anglin who wrote (568)6/8/1999 5:09:00 AM
From: Duker
   of 584
 
I thought it ended: ... and pigs get slaughtered ... (after they live perfectly wonderful lives wallowing in their own filth!).

--Duker

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To: Ross Brown who wrote ()9/1/1999 4:50:00 PM
From: Jon Klaus
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Over $4B in revs last Q, 0.54 per share profits

Looking pretty healthy to me. Best performing distibutor?

Yays, nays?

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To: Jon Klaus who wrote (571)9/1/1999 5:13:00 PM
From: Alex Chun
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Revenues are way up, but earnings are more or less flat. Are margins suffering? Why?

biz.yahoo.com

-Alex

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To: Alex Chun who wrote (572)9/2/1999 11:36:00 AM
From: Jon Klaus
   of 584
 
Margins have been suffering for 3 quarters now across the industry because:

1) 2nd tier distributors selling at low pricing to garner market share at the expense of profits. I have heard Pinnacor and CHS accused of this.

2) More vendors and buyers going direct, in some cases avoiding distribution all together.

I don't buy the 2nd reason completely, because of the big jump in revenues over a year ago.

TECD sells more services than the others which have better margins. They also have yet to feel the benefit of the Compaq DAP and the GE deal. I believe today ($32) is a fine buying opportunity.

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To: Jon Klaus who wrote (573)9/2/1999 10:20:00 PM
From: Judy Muldawer
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If $ 32 was a fine buying opportunity, under $ 30 is a steal!

This is a great company, folks. It is well-managed, it has earnings, it has lots of things going for it, but people have over-reacted and brought the price down.

Still holding onto my shares.

Judy

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To: Judy Muldawer who wrote (574)9/7/1999 10:31:00 PM
From: Mark Boatwright
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What gives? I just wish I had sold back @ $40 so I could have bought back in @ these levels! Why so much volume are people buying or dumping and why hasn't TD headed North?? Up
Mark

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To: Mark Boatwright who wrote (575)9/8/1999 1:17:00 PM
From: GS_Wall Street
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This whole sector is in trouble right now. Big money is moving elsewhere. If Y2K spending is over then the distributors will be the first signs of a slowing of hardware for the 4th Qtr.

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To: Dale Stempson who wrote (560)12/2/1999 12:21:00 AM
From: Dale Stempson
   of 584
 
Computer-Distributor Tech Data Profits Lower

Wednesday December 1 5:28 PM ET

By Michael Connor

MIAMI (Reuters) - Tech Data Corp. (NasdaqNM:TECD - news), the world's No. 2 computer-goods
distributor, on Wednesday reported lower quarterly profits and said Y2K fears among its big corporate
customers were hurting sales and earnings.

Shares of Tech Data, beaten down in recent months along with those of other computer-equipment
middlemen, fell more than 16 percent following the news. The shares later recovered a bit but ended down
$1-3/16 at $23-5/16 on the Nasdaq stock market.

The Clearwater, Fla.-based company also said its president and chief operating officer, Anthony Ibarguen,
was quitting to join a venture capital group in Pennsylvania.

Tech Data's net income for the fiscal third quarter, ended Oct. 31, totaled $33 million, or 60 cents per
diluted share, down from $34.1 million, or 63 cents per share, in the same quarter a year earlier.

The per-share earnings were a penny ahead of the 59 cents projected by analysts surveyed by First
Call/Thomson Financial, which tracks brokerage estimates.

Tech Data's sales in the quarter grew to $4.31 billion from $3.28 billion a year earlier. The company said its
sales growth and profitability were strong across all regions.

U.S. sales grew 44 percent and represented a majority of the company's sales. Sales grew only 14 percent
in Europe, where Tech Data faces competitive pricing. Sales in other international markets grew 60 percent.
Europe represented 39 percent of total sales, while international markets were 7 percent.

Tech Data executives said after the earnings release that worries among corporate buyers about possible
Y2K computer problems were hurting its fourth quarter. But they expressed confidence that business would
pick up next year.

Sales for the fourth quarter, ending in January, will be about $4.7 billion, and earnings will be 64 to 69
cents a share, below Wall Street expectations, Chief Financial Officer Jeffery Howells said.

``We think Year-2000 is costing us a few hundred million (in sales) in the quarter. That's the sole
reason...,' said Chief Executive Steven Raymund.

He said sales at Tech Data, a global distributor of 75,000 computer products, were growing well among
medium and small businesses, which do not face the same Y2K worries as big corporations with elaborate
computer systems.

The Tech Data executives said they expect per-share profits in the next fiscal year to grow 20 percent over
the year ending in January.

``I think there will be a snapback (in sales),' Raymund said. He said in an interview that earnings might
increase even more, but he could not confidently predict profit margins and sales rates. ``As a starting point,
it makes sense to look at $2.80 a share,' he said.

Before Wednesday's news, analysts had expected the company to earn between $2.90 and $3 per share in
the fiscal year ending in January 2001.

Shares of Tech Data, Ingram Micro (NYSE:IM - news) and other big computer-equipment distributors have
been beaten down by narrowing profit margins, shifting business conditions, and investor fears that the
Internet may eliminate many middleman functions.

But Raymund said Tech Data's online business had topped $2 billion and was growing as
computer-equipment manufacturers trim the ranks of distributors they use and outsource many central tasks.

Tech Data said it would not replace its outgoing president Ibarguen, who is joining Internet Capital Group
Inc. (NasdaqNM:ICGE - news). Nestor Cano, Tech Data's executive vice president of U.S. sales and
marketing, was promoted to president of the Americas responsible for U.S., Canadian and Latin American
operations.

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To: GS_Wall Street who wrote (576)12/17/1999 6:57:00 PM
From: PeterGx
   of 584
 
Greg -

the numbers on this company look pretty attractive at these levels. I am guessing that once the Y2K spending freeze is over their business will return to normal growth levels (about 20%). If that happens, I would think that the stock could double in a year. Any feelings on what this issue?

Cheers!
Peter

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To: PeterGx who wrote (578)12/18/1999 2:40:00 PM
From: GS_Wall Street
   of 584
 
Peter, I have invested in a couple of distributors in different sectors semiconductors, computers, cell phones, and clothing. One thing they all have in common is they move large amounts of money around, they have lots of competition and they trade a low P/E ratio relative to the industry.

Now if your timing is right and you are in an earnings up cycle you can get some P/E expansion maybe from 8 or 9 to 14 to 15, but beyond that gains are small and slow.

That being said I don't own anymore distributor companies. And if I did it would be for very short period of times. The last two times I was involved in TECD it was for less than two weeks each time.

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