Merisel : No. 1 on Wall Street’s Forlorn

Forlorn indeed. Merisel reports ever-increasing sales, yet its share price keeps dropping like a stone.

What gives?

Profits--or rather, a lack of them. The El Segundo-based computer wholesaler and distributor is feeling the pinch from fierce competition and price cutting in the personal computer industry.

Although 1995 worldwide sales rose to $6 billion, an increase of 19% from a year earlier, the company recorded a net loss for the year of $83.9 million.

Merisel, which fell into technical default on certain loan agreements earlier this year, said last month that it may sell some or all of its vast computer distribution business to raise money.