CHS electronics...
from herb greenberg: 2/2/99
Distribution dollop: CHS Electronics (CHSE:Nasdaq), a
distributor of electronic products outside the U.S.,
continues to put a positive spin on its own story. Well,
ahem, today Tech Data (TECD:Nasdaq), one of the largest
electronics distributors, which does biz in the U.S. and
Europe -- where the economies are strong -- blew up. Yet
CHS, which does a good deal of its business in Brazil,
Latin America and countries where business is lousy, is
supposedly doing well.
and then, 3 weeks later, from the motley fool
"Feb 25, 1999 (6:27 PM ET) - The Motley Fool Evening News
Computing products distributor CHS Electronics (NYSE:HS - news) tanked $2 3/8 to $7 13/16 after announcing preliminary
Q4 EPS of $0.47, up from $0.45 a year ago but below the current Zacks mean estimate of $0.66. The company said it has
discovered discrepancies in the amount of vendor incentives recorded in Q4 from the manufacturers whose products it
distributes, adding that it is investigating the problem. Final results for the quarter and fiscal 1998 will be reported "no later than
the week of March 15," the company said. Besides the typical uncertainty that the words "discovered" and "discrepancies"
breed when used together in the same sentence by a company, investors may also be reacting negatively to the fact that today's
warning ends CHS's record of beating analysts' estimates for eight straight quarters. J.C. Bradford cut its rating on the firm to
"neutral" from "strong buy."
i'd pass
david |
