Jim,
Good analogy...
When CPU dropped to 6 3/4 because of losses incurred when the former
CEO was on a wild expansion drive. He opened too many stores, too fast and with
increased retail compitition coming from Computer City and Micro
Warehouse, profit margins were squeezed to the bone.
It took the Board to fire him and put the current, more sober
Mr. Alpern at the helm. Mr. Alpern slowed down the growth, and
initiated better inventory controls and centralized distribution
of product to stores. Of course, COMP USA had very high visibility,
being the premier distributor of computer products at the retail
and corporate levels through a direct sales team.
Also, CompUsa sells products people, (including Wall St.),
that exite people. I found it interesting that after CPU opened
their first N.Y.C. store, the price began going up...
Unfortunatly, RECY does not have the same exiting product CPU does,
and therefore may take a while longer to be noticed.....Hmmmm
Unless they open up shop in N.Y.C., perhaps near Wall St.
Regards,
Skane |
