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Microcap & Penny Stocks : All American Semiconductor (semi) -- Ignore unavailable to you. Want to Upgrade?

To: stockaholic who wrote (524)3/3/1998 9:26:00 PM
From: jeffbas  Read Replies (1) | Respond to of 952
 
Would you please explain what you mean by "contract mfg orders" hurting distributors? If you are referring to KNT, that was a contract mfg subsidiary that was having problems because it has a heavy focus on the semi-equipment industry. Did I miss something somewhere?



To: stockaholic who wrote (524)3/3/1998 11:20:00 PM
From: Arthur Tang  Respond to of 952
 
Thank you, stockaholic. Computer products in distribution suffers low gross margin due to low margins at about 6.8%. Most distribution which lacks followings suffer worse. Vanstar gets about 12.5% which means they pick and choose customers who gave them exclusive business. Vanstar does about $1 billion. Any distributor who can not walk away from severely competitive business gave their store away. SEMI learned their lessons already in 1996.


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