I was just reading through Briefing and saw this weeks stocks that are mentioned in Business Week. I rarely find anything there that peaks my interest, but this one did...MICA. The following is the article. I am in for at least a couple of days. I think it could see a nice pop today and early next week.
UNTANGLING THE WIRES AT MICROAGE
Shares of MicroAge (MICA) have been on the ropes, partly because of
disappointing earnings. Its stock has tumbled--to 14 1/4 a share on Aug.
12, down from 29 last September. But MicroAge will perk up, say several
pros. For one, earnings should rebound. But more important: They expect
this integrator and distributor of info-tech products and services to
unload its Pinacor unit, which distributes products to resellers.
On Apr. 13, when MicroAge was mentioned in this column, Chairman Jeff
McKeever said he was considering all options--including selling the
distribution business--to boost the stock. Since then, he has split
MicroAge, with expected sales of $5.5 billion to $6 billion in the
fiscal year ending Oct. 31, 1998, into two units: MicroAge Integration,
which provides and installs systems, and Pinacor.
Now, a deal looks set for the sale of Pinacor, expected to post sales of
$4.5 billion this year, to CHS Electronics, for $650 million in cash and
stock. That translates into $32 a share in MicroAge stock. CHS
distributes minicomputer products.
Analysts forecast profits of $1.09 in 1999, as demand for info-tech
resurges, vs. an expected 24 cents loss in fiscal 1998. MicroAge
spokeswoman Michelle Gorel says the company is considering all options
for Pinacor. CHS CEO Claudio Osorio was unavailable for comment. |
