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HEXUS.sharewatch: distributors benefit most from market recovery

by Scott Bicheno on 6 September 2010, 13:07

Tags: Ingram Micro (NYSE:IM), Avnet (NYSE:AVT), Computer 2000

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Of all the companies in our list, the distributors are probably the most profoundly affected by macroeconomic currents. So when the US and world economy looks a bit less rubbish than feared, it's not surprising to see them benefit the most.

Last week saw another batch of economic indicators released. Both US manufacturing and employment fared a bit better than expected in August, and new signs of growth in China and Australia led investors to feel less pessimistic about the prospects for the global economy.

As a consequence, all our shares experienced an uplift last week, with disties leading the way. Avnet, Ingram and Tech Data all saw their stock gain by over eight percent, while ARM continued to reap the rewards of the mobile revolution and Nokia continued its rollercoaster ride.

Of course this is just one week in isolation, and merely because things are less crap than feared doesn't mean they're cool. While the US unemployment figures were better than expected, they still revealed the loss of a further 54,000 jobs. As the Telegraph points out, the US needs to create 150,000 jobs per month just to achieve parity.

This week could easily yield some more pessimism-inducing news and see everyone back in the red. Furthermore, it's hard to see an end all this uncertainty. It can't be much fun being a fund-manager these days.

 

Company Listing Share price 16/8/10 Share price 22/8/10 Share price 31/8/10 Share price 6/9/10 6-day change Market cap (bn)
AMD AMD 6.49 6.25 5.78 6.09 5.4% 4.11
Apple AAPL 249.10 249.64 242.50 258.77 6.7% 236.40
ARM ARMH 14.46 15.13 15.76 17.22 9.3% 7.57
Avnet AVT 23.80 24.17 23.18 25.47 9.9% 3.87
Cisco CSCO 21.36 22.23 20.32 21.04 3.5% 120.16
Dell DELL 12.01 12.07 12.02 12.59 4.7% 24.48
Google GOOG 486.35 462.02 452.69 470.30 3.9% 149.89
HP HPQ 40.45 39.85 38.56 40.34 4.6% 94.17
IBM IBM 127.87 127.50 123.40 127.58 3.4% 160.91
Ingram Micro IM 15.82 15.76 14.87 16.14 8.5% 2.53
Intel INTC 19.15 18.91 17.96 18.43 2.6% 102.62
Microsoft MSFT 24.40 24.23 23.64 24.29 2.7% 210.20
Nokia NOK 8.86 9.09 8.56 9.25 8.1% 34.64
Nvidia NVDA 9.39 9.97 9.64 9.90 2.7% 5.68
Oracle ORCL 22.66 23.02 22.02 22.92 4.1% 115.20
Qualcomm QCOM 37.95 38.91 38.29 40.38 5.5% 64.82
Tech Data TECD 36.75 37.97 36.38 39.46 8.5% 2.00
Dow .DJI 10303.15 10213.62 10009.73 10447.93 4.4% N/A
FTSE 100 .FTSE 5275.44 5195.28 5201.56 5428.15 4.4% N/A
NASDAQ .IXIC 2173.48 2179.76 2119.97 2233.75 5.4% N/A


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