Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Baton who wrote (6750)	5/13/1999 6:56:00 PM
From: Fuzzy	Read Replies (2) \| Respond to of 57584

Anyone have any thoughts on HS turning around? Computer Associates invests in CHS Electronics Reuters, Thursday, May 13, 1999 at 16:14 ISLANDIA, N.Y., May 13 (Reuters) - Business software maker and support service provider Computer Associates International Inc. (NYSE:CA) Thursday said it agreed to invest $50 million in computer and network distributor CHS Electronics Inc. (NYSE:HS),whose shares were battered Thursday following the release o computer and network distributor CHS Electronics Inc. (NYSE:HS),whose shares were battered Thursday following the release o f a dismal earnings report. Under the strategic agreement, the companies said CHS will supply Computer Associates with marketing, distribution and reseller rights to its products. CHS is the largest distributor in Europe and Latin America and the third largest in the world, and is building a position in Asia, the Middle East and Africa. "Through this strategic relationship, CA's Global Professional Services organization will be better able to respond to clients' needs for an integrated solution that includes software, hardware and professional services," Computer Associates Chief Executive Charles Wang said in a statement. CHS said it will use the proceeds from this investment for working capital purposes. Shares of Computer Associates Thursday afternoon were down 6 cents to $45.25, while shares of CHS were down 94 cents to $4.56. On Wednesday CHS said competitive price pressure pushed first-quarter net profits down 99 percent to $234,000. The company's stock is trading not far from its 52-week low of $2.75 and far from its 52-week high of $19.75. CHS was the biggest percentage loser on the New York Stock Exchange, with its price falling more than 17 percent. Last month, CHS agreed to bundle Computer Associates' management software with server, desktop and storage products CHS distributes in Europe, the Middle East, Asia and Latin America. Copyright 1999, Reuters News Service