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Non-Tech : Ingram Micro

IM 38.89

0.0%

Dec 13 4:00 PM EST

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To: E_K_S who wrote (514)	2/17/2000 10:40:00 PM
From: E_K_S	Read Replies (1) of 576

Stockholders' Equity is $13.64/share. It seems the stock is very cheap. Strong Balance Sheet Position At the end of fiscal 1999, Ingram Micro's capital position improved based on good asset utilization and contributions to equity from earnings and investment appreciation. Total debt declined $372 million (2.58/share) from the end of 1998 to $1.35 billion at the end of 1999. Stockholders' Equity increased $568 million ($3.94/share) from the end of 1998 to $1.97 billion or $13.64 per outstanding share at the end of 1999. The increase in Stockholders' Equity at year-end includes the effect of unrealized gains of $357 million ($2.47/share) net of tax on the company's investment in SOFTBANK common stock. The company's position in SOFTBANK as of February 17, 2000 represents an unrealized gain of approximately $450 million ($3.13/share) net of tax. ============================================================ It appears that the SoftBank holdings are represented as a $3.13 gain to equity BUT my figures show that they should be around $9.00/share. Did the company sell more share from Oct. 1998 to date or are they using a conservative valuation number for the present value of SoftBank share holdings? Still this is a huge gain as their original investment represented $0.34/share original cost and now it is value (by the company) as $3.13/share! Earnings are GREAT and beat the street. I continue to hold and look for fair value at $29.00/share. This is based on the current book value of $13.50/share plus the earnings of $1.12/year (trailing PE) at a future growth rate of 18% or $1.32 next year. Look's like our new CEO needs to present to the street a business plan that can grow earnings at an 18% rate utilizing a B2B strategy and we can expect a $29 to $30 price target in 12 months! I rate the current value a BUY. Look for analyst upgrades especially AFTER a new CEO is announced. EKS

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