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Non-Tech : CompUSA (CPU)

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To: epicure who wrote (565)6/22/1998 1:24:00 PM
From: Xpiderman  Read Replies (1) of 3187
 
CPU bought Computer City, I bought CPU stock.

CPU is a good buy at this price level: it is trading at multiple year low P/E, now with improving TA chart. The Computer City buy-out only make it more dominate in its field, and deserve higher P/E multiples.

With next year's estimate EPS of $1.42 and a average P/E of 30, my target price for CPU is $42. If the EPS growth is somehow fast than current estimate, which I believe it will, CPU will enjoy the expansion of both P/E ration and EPS estimate.

Cheers,

XyZ
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