SI
SI
discoversearch

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.
Technology Stocks : HS - CHS Electronics
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Sam who wrote (887)11/6/1998 12:04:00 PM
From: Mark Marcellus  Read Replies (1) of 1494
 
<<I don't understand the question, "what are revenues down?" Revenues were up sharply, the report said>>

I saw the same interview, so let me try to clarify. Early on Osorio said that revenues were down 70% in Russia, then later said that CHS was able to meet its profit goals there. When asked how this could be, he replied that there were shortages in Europe, so margins were able to be increased. Mark Haines was somewhat taken aback by this claim, and quoted Ingram Micro as saying that margins were "razor-thin" in Europe. Osorio at this point reiterated his statement that there were product shortages.

The interview proceeded, and after some rustling of paper Haines stated that the report showed significant inventory numbers and asked how this could be if there were product shortages. Osorio replied that inventory was down to 30 days. Haines asked why the company was carrying any inventory if product shortages exist. He never did get a direct answer to this question.

Like Phil I'm skeptical of this company and the interview prompted me to start nosing around with an eye towards shorting. My first quick glance at their financials revealed no obvious red flags (in fact their inventory and A/R numbers look pretty good). However, the way their business is structured there are many opportunities for obfuscation if they are of a mind to do that. Given the sprawling nature of their distribution network, the lack of controls would also concern me if I was an investor. Right now there's a decent amount of skepticism built into the stock price though.

FWIW,

Mark
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News