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Technology Stocks : TECD - Tech Data

TECD 144.90

0.0%

Jun 30 5:00 PM EST

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To: leo lewis who wrote (5)	11/7/1996 1:47:00 PM
From: Ross Brown	of 584

TECD is a well run distribution player for the long term hold. Steve Raymund, the CEO, has a strong control of costs, and is aggressively driving his SG&A costs down. Their stated goal is to return 3.5% of sales as net profit, so cost containment is the key. Watch the SG&A in relation to MSEL and IM, the primary competitors. The key challenge facing TECD is how to increase the profitable product lines without incurring additional SG&A. This remains a tricky task, but TECD is well positioned to take advantage of the growth in demand for technology equipment. Look for a price of 40 in about 3 months, with a 2/1 split if it stays above 40 for longer than 2 months. Ross

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