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Non-Tech : CompUSA (CPU)

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To: Raptech who wrote (3059)11/29/1999 1:42:00 PM
From: jgideon  Read Replies (1) of 3187
 
> The big questions is, what will they do after the holidays to perpetuate the near term success?

Long term, CPU cannot compete directly against web
computer sales. It is just too easy to get something
off the web from a company with lower overhead that
can offer lower prices for the same goods.

The next couple years will hurt especially as the
e-tailers offer items at or near cost, just to get
name recognition and market share.

However, there will always be a market for a brick
and mortar store presence. Lots of people want to
see and hold a product before buying. There is always
the instant gratification of taking it home today.
That market will shrink, but will never go away. CPU
can be the dominant player in that area. They just
have to adjust their strategies accordingly.

The big question is whether they can be consistently
profitable in such a market.

Until CPU has a stated plan on how to adjust to that
future, I wouldn't expect the stock to have any sustained
strength.

JMHO. jg
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