By William Trent, CFA of Stock Market Beat
We have written before that bullish investors are hoping that spending by businesses will pick up any slack from a slowing consumer. Well, we’re still waiting.
CDW Average Daily Sales Rise in November: Financial News – Yahoo! Finance
Total sales were up 11.9 percent to $569.2 million, from $508.5 million last year.Excluding the October acquisition of Berbee Information Networks Corp., average daily sales grew 5 percent to $25.5 million, from $24.2 million last year. Total sales grew 5 percent to $534.8 million, from $508.5 million last year.
Average daily sales for the public sector grew 14.9 percent, whiles sales for the corporate sector grew 1.5 percent, both excluding Berbee sales.
CDW sells technology to a wide range of businesses, and is therefore one of several companies that can provide a good indication of overall business investment in technology. 5% growth is slower than nominal GDP growth, which would indicate that business spending is shrinking as a percentage of economic activity, rather than growing.
The author may hold a position in the securities discussed. The author’s current holdings are as follows: Long: FedEx (FDX) put options; Intuit (INTU) put options; Nasdaq 100 (QQQQ) put options; Bookham (BKHM; Ballard Power (BLDP); Syntax Brillian (BRLC); CMGI (CMGI); Genentech (DNA); Ion Media Networks (ION); Lion’s Gate (LGF); Three Five Systems (TFS); Adobe Systems (ADBE) call options; IShares Japan (EWJ); StreetTracks Gold (GLD); Starbucks (SBUX); U.S. Oil Fund (USO); Plantronics (PLT) call options; Short: Ceradyne (CRDN) put options; Lion’s Gate (LGF) call options; Dell (DELL) put options; Plantronics (PLT) put options
