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Technology Stocks : TECD - Tech Data -- Ignore unavailable to you. Want to Upgrade?

To: Alex Chun who wrote (572)9/2/1999 11:36:00 AM
From: Jon Klaus  Read Replies (1) | Respond to 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.