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Technology Stocks : IDTI - an IC Play on Growth Markets -- Ignore unavailable to you. Want to Upgrade?

To: Hippieslayer who wrote (6127)	1/28/1998 2:49:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 11555

Quite often when a distributor is added the company must consider and negotiate overlap in coverage with other distributors. This isn't so much of a factor with CL because they are a new company that doesn't have a lot of potential for channel conflict. Say they had established 2-3 major national distys who blanketed the US & Canada. then they want to add another disty because it would provide greater coverage into some market areas that were being agressively pursued by those distys. The established distys might object to putting on the new disty in certain markets, arguing that they were covering those markets adequately. So the mfg. might put the new disty on in just those markets where they had particular strengths, such as strategic cupplier relationships with key accounts. CL can be expected to grow into relationships with the major distys over a period of the next 2-3 years. I don't think that they have relationships established yet with the Hamiltons, Arrows and other mega distys - those guys want to see enough biz already in the flow before they get excited.