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Non-Tech : Ingram Micro -- Ignore unavailable to you. Want to Upgrade?

To: Richard James who wrote (368)	11/21/1999 12:10:00 PM
From: Dale Stempson	Read Replies (2) \| Respond to of 576

RE: >>> Am thinking about taking a position or positions in distributors... Would anyone please care to venture an opinion... <<< Richard, I suggest you consider Ingram Micro and Tech Data. Certainly size, coupled with their resources ensure long term survival in this difficult and rapidly changing channel environment. The sector is being hurt by low margins and there exists an excessive number of distributors competing to supply a long list of the same products. Already strained smaller distributors face the risk of elimination if they fail to execute. IM and TECD will likely benefit from the trend of manufacturers to reduce their distribution partners to a select few. Purchasing power for each of these two is huge and increasing, and of course provides competitive cost advantages. The businesses are always profitable. Significant top-line sales growth continues to be reflected in earnings reports. Stock prices are currently trading on the low side of their 52-week ranges, while analysts recommend both companies with consensus buy ratings. In addition, IM and TECD dominate the Internet having already established critical fulfillment, logistics and outsourcing agreements with most every major web reseller. Regards - Dale