The Best (And Worst) Channel Stocks Of 2013


CEO: Richard Leeds

Dec. 31, 2012: $9.65
Dec. 31, 2013: $11.25
Change: +16.6%

Systemax's share price increased despite a less-than-stellar financial performance in 2013. For the first three quarters of fiscal 2013, ended Sept. 30, Systemax reported sales of $2.48 billion, down 5 percent from $2.61 billion in the same period of fiscal 2012. The Port Washington, N.Y.-based company (No. 20 on the CRN 2013 Solution Provider 500) also reported a $24 million loss for the three-quarter period compared to a profit of $18.8 million for the same period in 2012.

In June, Carl Fiorentino, a former executive of Systemax's North American Technology Products Group, was indicted on federal charges of mail fraud, wire fraud, money laundering and conspiracy in connection with what Systemax called "a scheme to defraud the company." He is charged with taking more than $7 million in bribes and kickbacks in return for allegedly steering more than $230 million in business to companies in California and Taiwan. The charges followed an internal company investigation in 2011. Fiorentino has pleaded not guilty and is awaiting trial.