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Microcap & Penny Stocks : All American Semiconductor (semi)
SEMI 30.74+3.7%Feb 6 4:00 PM EST
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To: stockaholic who wrote (524)3/3/1998 11:20:00 PM
From: Arthur Tang   of 952
 
Thank you, stockaholic. Computer products in distribution suffers low gross margin due to low margins at about 6.8%. Most distribution which lacks followings suffer worse. Vanstar gets about 12.5% which means they pick and choose customers who gave them exclusive business. Vanstar does about $1 billion. Any distributor who can not walk away from severely competitive business gave their store away. SEMI learned their lessons already in 1996.
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