CPU may have lower earning due to expansion
but I have a feeling many of those recent
expansions will fail and turn into losses.
for example, CompUSA recently opened a store
in Queens, New York that is doomed to fail.
The only parking is from a mall parking are
that is 4 blocks away. This CompUSA is in
a densely retail populated area with a Circuit
City, Wiz, Sears, Radio Shack, and several other
private computer and electronic stores all in
the same 4 block radius. Their bench charges
are TWICE what the going rate is in this area,
and the technicians are the same pimple faced
pissants you see in every other store. The
"sales" circulars are hardly that. About half
the items in there are neither new nor on sale.
I left CompUSA today after being disgusted
with their overpriced CDR media, went across
the street and bought the same brand CDR's
20% cheaper at Circuit City. While in the
CompuUSA store, I notice it was relatively
empty during the home from work dinner hours,
and that not a single notebook computer in
the demo area was actually working, I'm not
talking password protected, I'm talking dead.
I complained to the salesman about the CDR
pricing being so ridiculous, and not a rebate
in sight, and he said if I spoke to a manager
they might do something. Yeah right,
that's why I walk into a CompUSA?
to handel with the sale staff over pricing?
give me a break.
people are not on this thread to diss this
stock because they want to short it or buy
it cheaper. they are on this thread to open
the eyes and ears of you hypnotised longs all
stuck since the teens, and newbies convinced
this price is a bargin, when the stock price
is only reflecting the failure of management.
I've seen too many Electronics and Computer
Retail chains fail to believe that by some
miracle CompUSA with rise above it all and
prosper. It just ain't gonna happen, people,
and the sooner you see what I see, the less
painful holding this stock any longer will be.
If CompUSA gets near it's book value price
then maybe I'll tuck a few shares away in
case someone buys them out of their misery,
but short of more rumor generated hype, this
stock won't be leaving the single digits. |
