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To: Monster who wrote (36009)	7/7/1998 8:52:00 PM
From: yard_man	Respond to of 53903

Monster, Do you know what brands they carry? Also do they sell latest models or "leftovers?" Seriously. >>An 18.6% increase in the average order size to $600<< Are they selling low end PC's only or low end PC's and peripheral or jsut peripherals?

To: Monster who wrote (36009)	7/7/1998 9:00:00 PM
From: yard_man	Read Replies (1) \| Respond to of 53903

From the most recent 10Q >>GENERAL The Company was founded in 1982 as a mail-order business offering a broad range of software and accessories for IBM and IBM-compatible personal computers ("PCs").<< >>Computer system sales generally provide the largest gross profit dollar contribution per order of all of the Company's products, although they yield the lowest gross margin percentage. Partially as a result of higher system sales, the Company's gross margin has declined over the last two years while the operating income margin has increased due to the leveraging of selling, general and administrative expenses over a larger sales base.<< Margins in the PCs are going into the toilet. It is common knowledge. Sales have increased, Monster. Perhaps margins have too (we don't know from the release you posted) -- this would indicate that they are selling more peripherals and less PCs. Look a little deeper. >>System/memory sales increased to 41.3% of net sales in 1998 from 39.3% for the comparable period in 1997.<< Very small increase in sales. This probably means a net decrease in the number of units sold given the price drops from 1997 to 1998. The other 60% of sales is peripherals and SW. I wouldn't buy this company for a number of reasons. More important, the release is not indicative of any trend or health of the PC market as a whole.