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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (33011)	12/11/2008 12:29:52 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78717

The electronics distribution business has inventories subject to quick obsolescence. That the companies have managed inventory successfully in past years gives me some confidence that inventory management is an important management skill set for these folks. Otoh though, we're seeing this sudden downturn in the economy unlike other downturns so maybe there are business aspects that just aren't going to be resolved without a lot of pain. I'll bet management will size their inventory properly and if required, restructure their business for profitability. I look for a reversion-to-mean with at least a double for ARW and AVT from current prices within the next three years. More risk with the other (smaller) players; also perhaps more potential reward. Jmo, I could be wrong. Small position for me.