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Technology Stocks : EDS - Recent pullback a buy opportunity???
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To: Dave O. who wrote (1197)10/30/1998 9:36:00 AM
From: bcroyle  Read Replies (1) of 1841
 
I think the "leasing assets" describe the PC fulfillment business that EDS left recently. EDS was for many years one of the top 10 PC VAR's in the world. As more companies moved into the space, and the manufacturers themselves cleaned-up their channels, this business turned into very low-margins. EDS transferred all of it's PC provisioning and inventory to Pinacor, and presumably got some cash for the deal. In the near and long term, this is a good move: frees cash, improves overall margins, emphasises service over hardware.
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