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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: Cheeky Kid who wrote (11817)	3/30/1999 8:40:00 PM
From: Susan Saline	Respond to of 43080

and a big SMOOCH back at ya honey pie :o) and for those of you who stuck with TECD .... the BIG BONANZA!! ...... and for those of us who did not hold ..... IM is the sympathy play ... same business .... similar chart ... but probably won't get the gig gappa TECD will, so will easier entry without chasing. Both excellent stocks for long term hold and day plays Tech Data Reports Record Profits, Stablizing Prices By Michael Connor MIAMI (Reuters) - Tech Data Corp. (Nasdaq:TECD - news), the world's second largest computer-equipment distributor, Tuesday reported record-high quarterly net income of $36.5 million and said a price war among technology distributors may be easing. Sales in the fiscal fourth quarter ended Jan. 31 increased 82.3 percent to $3.85 billion, from $2.11 billion for the comparable quarter a year earlier, and included the business of Computer 2000 AG, a European distributor acquired last July. Net income for the fourth quarter increased 39.6 percent to $36.5 million, or $0.67 per diluted share, including an additional $3.2 million pretax gain from the sale of computer products-distributor Macrotron AG. Excluding the Macrotron gain, net income for the quarter was $34.5 million, or $0.64 per diluted share, up from $0.53 a year earlier. The share profit was at the high end of a range Clearwater, Fla.-based Tech Data announced last month as well as being two cents above a First Call consensus of analysts forecasts. Tech Data's earnings warning on Feb. 2 shocked investors, who knocked 36 percent off its share price that day. Sales for the full fiscal year, increased 63.4 percent to $11.5 billion, compared with $7.1 billion in fiscal 1998. Sales, without acquisitions, rose 17 percent in the United States, 27 percent in Europe and 15 percent in other foreign markets. Net income for the year increased 44.1 percent to $129 million, or $2.47 per diluted share. Excluding the $15.7 million pretax gain on Macrotron, net income for the year totaled $119.4 million, or $2.29 per diluted share, compared with $89.5 million, or $1.92 per diluted share last year. Expressing pleasure at the results, Tech Data chairman Steven Raymund said, ''Our performance stands out even more today considering the intense competitive conditions facing our industry.'' Tech Data last year began reducing prices to maintain market share against price-cutting competitors, a move which has depressed profit margins on the thousands of computer parts and software Tech Data sells, company executives said. Earlier this month, the world's largest computer wholesaler, Ingram Micro Inc. (NYSE:IM - news), announced job cuts of 1,400, or 10 percent of its 14,000 employees, and said it would fall short of earnings estimates because of price pressures in the United States. Raymund and other Tech Data executives said during a conference call with institutional investors that their profit margins were stabilizing in the first months of the new year. The executives declined to discuss margin specifics. ''We are seeing some price stability. Margins are not declining at this time,'' Raymund said.