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Technology Stocks : HS - CHS Electronics -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (914)	1/9/1999 4:12:00 PM
From: Carmine Cammarosano	Read Replies (1) \| Respond to of 1494

This stock is acting very well. It has good relative strength and is being accumulated...international crisis behind us...we are going higher...We should see new highs soon...

To: JakeStraw who wrote (914)	1/11/1999 9:23:00 PM
From: Ginco	Respond to of 1494

CHS May Buy Pinacor (01/08/99, 6:20 p.m. ET) By Eric Hausman & Scott Campbell, Computer Reseller News A final decision on Pinacor may be just days away, and speculation is increasing that CHS Electronics will be the likely buyer. MicroAge, which owns the distributor, for months has been considering ways in which to create a separate shareholder base for Pinacor. MicroAge, in Tempe, Ariz., originally said it would make a decision by the end of 1998, but as the deadline neared the company pushed the date to Jan. 13, the same day it is scheduled to reveal its earnings. The most likely option appears to be a sale, sources said. Merisel and CHS often have been named by observers as the most likely buyers. However, sources close to Pinacor recently said a merger with Merisel, in El Segundo, Calif., appears unlikely while a deal could be worked out with Miami-based CHS. CHS and Pinacor are very close to an agreement, and a deal may be announced as early as next week, according to sources. MicroAge and CHS would not comment, but analysts said CHS and Pinacor would make a good fit. "They make the most sense because they need a U.S. platform," said Kevin McCarthy, vice president at Donaldson, Lufkin & Jenrette Securities, in New York, speaking of CHS, which is a worldwide player, except in the United States. Over the past several months, MicroAge chairman and CEO Jeffrey McKeever has said the most likely options for Pinacor would be an IPO or a merger. He also has stressed that a key issue in the decision will be enhancing shareholder value, and Wall Street has generally been less than enthusiastic about the prospects of an IPO from another distributor. Recent disappointing financial news from the industry's two largest distributors -- Ingram Micro and Tech Data -- could make it even more difficult for McKeever to sell Pinacor to Wall Street, analysts and investors have said. Claudio Osorio, CHS chairman and CEO, said last summer that he hoped to enter the U.S. market by the end of 1998, but he eventually backed off that statement. "Claudio never publicly set a deadline," said Rich Kaminsky, CHS director of investor relations and assistant treasurer. "He's made it clear he has no time frame for [entering the United States.] He's led people to believe we'd like to do it in the near future. We've told people we'll do it if it makes sense to enter the United States. If it makes sense to do it sooner rather than later, we'll do it sooner. But we haven't committed to any specific time frames." Price May Be An issue "Culturally, it's a good fit," said Kristi Thiese, analyst at Raymond James and Associates, in St. Petersburg, Fla. "The question is just price. MicroAge is reportedly asking a hefty price, a number higher than the market capitalization of MicroAge itself." McCarthy also said price would be key. He said there was talk of a CHS/Pinacor deal last fall, but that may have been put on hold when CHS' stock took a big hit. With its stock trading around $18 per share in August, CHS plummeted to as low as $6 in October. But with CHS shares back up to near $20, McCarthy said a deal may once again be possible. Most of CHS' numerous acquisitions have been for stock. As for Wall Street's excitement over a possible deal, McCarthy said many investors have lost a lot of interest in the channel of late, but added a deal of this magnitude could change that. Related Stories: Pinacor Decision Postponed Pinacor's Fate To Be Decided techweb.com