Tech Data Corp
The IT distribution business is highly cyclical and notoriously competitive. However, efficient operators can create value for shareholders. Three such operators are currently being unfairly discounted by the market due to near-term demand concerns.
The only way to make money in an industry that has no sustainable competitive advantages is to become the most efficient operator. Ingram Micro (NYSE: IM) is the most obvious place to start looking more »
Of all the industries you could start a business in, IT products distribution is probably the last I would recommend. Low margins, cutthroat competition, and high supplier bargaining power make this as unattractive an industry as you can find.
However, while I wouldn't say some companies thrive in this industry, it is clear that a few have found a way to make more money than most.
The most attractive more »
One of the biggest stories in the tech sector lately has been the rumored downfall of the PC hardware industry. Several very large PC firms have been reporting slowing sales, and in some cases, posting quarterly losses as a result of poor demand. However, one branch of the computer sector has been doing rather well as of late. PC wholesalers, on the whole, are growing earnings quite well, and priced more »
Ingram Micro (NYSE: IM) has underperformed its peers over recent years. The shares have not enjoyed the same gains as similar stocks within technology due to margin pressure and lower earnings growth. Ingram Micro has had many issues, ongoing problems with an ERP implementation, increasing competitive pressure, concern over their ability to integrate Brightpoint and softening demand in its core distribution business. That said, the stock looks inexpensive and the more »
It’s hard to believe anyone would envy the rancorous budget debates in Congress last summer, but the leaders of the EU might have that inglorious honor, with budget and debt talks currently threatening the very existence of the hard-earned economic and political union. Although the sovereign debt crisis across the pond will not topple Barack Obama as it felled Silvio Berlusconi or George Papandreou (at least not until November more »
One of the best ways to get a read on an industry is to look at what its distributors are saying.
With this in mind, I felt IT distributor Tech Data (NASDAQ: TECD) gave some interesting commentary. Investors in Hewlett-Packard (NYSE: HPQ) should be particularly interested as 10% of Tech Data’s revenues come from HP products.
In summary, Tech Data is currently seeing strength in mobility (cell phones and more »