I don't know about that. What we need to look at is when the quarterly earnings and annual report come out, what percentage of their revenue comes from what area. Certainly you are correct if retail hardware from there stores accounts for the majority of their revenue, but if they are only getting say 15 or 20% from the hardware off of the floor, and the rest is coming from software sold on the floor, corporate maintanance, replacement, and training contracts, sales of their hardware over the net, and other things not directly associated with retail, than they could very well pass through the 35 dollar barrier.
But what you point out is indeed my greatest worry. You are probably a good example. I would imagine you are fairly computer literate. Did you or would you purchase a computer from Comp USA, assuming there is a store near you, or will you order it over the Net or over the phone, like I did my Dell. (In all fairness, when I bought my Dell, I lived in Bumawuck Texas in the middle of nowhere so the nearest CPU store was Dallas 21/2 hours away.) The repeat sales are a worry.
On a seperate note, about a year ago CPU announced they were going to experiment with small city stores and planned to open about 10 stores in 10 small Texas cities with populations of about 100,000. Has anyone heard about how that went? Did they do it? I have heard nothing. |
