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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: StockHawk who wrote (14294)	5/8/1999 1:14:00 PM
From: LTK007	Respond to of 56535

Searching for a reason MSEL(Merisel) exploded from deep slumber on Friday--- this must be it-- Compaq expected to cut distributor ranks By Bloomberg News Special to CNET News.com May 7, 1999, 5:10 p.m. PT HOUSTON--Compaq Computer is expected to cut the number of distributors that sell its products to about four from as many as 40 to curb costs and manage inventory, analysts said. The move, the first big decision by chairman Ben Rosen since he ousted chief executive Eckhard Pfeiffer last month, could come as early as Monday, said analyst Kurt King of NationsBanc Montgomery Securities. Compaq's partners are likely to be Ingram Micro, Tech Data, Merisel, and CompuCom Systems, said analyst Ashok Kumar of US Bancorp Piper Jaffray. Compaq wants to winnow the companies that distribute its PCs because it's too difficult to control inventory, gauge demand, and keep costs down with dozens of disparate sellers. In exchange for giving a handful of companies more sales, Compaq likely will seek better terms from its remaining partners. "They'll have control of what demand and inventory look like and they'll get cost savings," said Kumar, who rates Compaq "buy."