Ingram Micro Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Ingram Micro

IM 38.89

0.0%

Dec 13 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Dale Stempson who wrote (518)	2/18/2000 9:24:00 AM
From: Reseller	Read Replies (2) of 576

Hi Dale , I agree that if these margins were actual than we would be looking at some real problems but they are not actual margins, they were adjusted downward and are the result of a book entry that had nothing to do with the actual margin percentage, nor a result of performance or market conditions. The goods and services actually sold for more margin than stated. Finally it was further stated that margins were rising even to a point of volume risk. IMO this is what I would have expected to protect their gain from Softbank. The other issue that should be pointed out a little more clearly is that the portion of the $150 million provision dealing with vendor sponsored programs is a set aside, a reserve for the happenstance of utility. When pressured further in the cc Ingram made it very clear that these accounts were not settled stating that these were still under negotiations leaving the entire issue ambiguous. The idea of incurring costs on the happenstance that they might occur leads me to question wether they ever will occur. On the inventory side... inventory is one of those gray areas that have valuations based upon any number of criteria. At the end of the year when taking my inventory for tax purposes I make sure that the bare minimum of value is assessed it's only smart business. I find it unbelievable that a company that wields the power that Ingram does is actually being stuck by a few vendors. I too am disappointed that their Softbank investments aren't worth more than I had initially figured but, just as with some of my investments at some point you must decide to take some off the table and put it in the bank, no longer at risk, with still 500 thousand shares invested, great investment. On a more positive side they now have a war chest that also guarantees good performance throughout the remaining year, the idea of adjusting the books for future stability should be reassuring to the investment community. Further in a year when virtually everyone that I can think of besides HP experienced a slowdown due to Y2K, Ingram had positioned itself for a record sales quarter, this sentence is worth repeating. Regards Reseller

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next