Copy of a letter I sent to ComVest
Dear ComVest,
I read an unsubstantiated rumor on the Internet that you are going belly up. It looks to me like a cheap shot by short sellers. Please give me information to discredit this rumor. Below are the details:
I got this in reply to a post I made on I made on Silicon investor @ Message 5786899
Jerry W. Grizzle, the Company's Chairman and CEO, stated last Quarter
"we successfully acquired our largest competitor, Disc Go Round, which now makes CD Warehouse, Inc., the largest retail music chain specializing in the sale of pre-owned CD's. Since the acquisition occurred at the end of the quarter, the results of the combined operations will not be reflected until subsequent periods."
Read this part again..."Since the acquisition occurred at the end of the quarter, the results of the combined operations will not be reflected until subsequent periods."
Now read this:
DALLAS--(BUSINESS WIRE)--Aug. 6, 1998-ComVest Partners, Inc. today announced that in a research report, analyst Tomas Escamilla set a 12-month price target of $50 based on estimated EPS of $0.43 for FY98 and $0.70 for FY99. Escamilla noted, ''While the retail music industry is highly fragmented, after its recent acquisition, CD Warehouse is positioned to seize a significant share of the rapidly growing $1 billion pre-owned CD market without competition by any similar retail chain.''
Want another reason to be bullish on this stock:
OKLAHOMA CITY, Sept 9 (Reuters) - CD Warehouse Inc. (Nasdaq:CDWI - news) music store said on Wednesday it plans to launch a website that will allow it to sell new and used music compact discs over the Internet.
Bob
I received in reply the following rumor:
@ Message 5791047
To: Robert Skinner (108 )
From: Rex Dwyer Saturday, Sep 19 1998 3:33AM ET
Reply # of 109
I heard that ComVest Partners went belly up...
Can anyone verify this? If its true, I can see how it would be devastating to the stock. Even down more from here at $8.
If you really know the real story behind the stock, it could give you a great buying opportunity as accounts bail out of this thing.
Rex
Can you shed any light on this rumor? I would like to kill the rumor at its source by posting your reply on Silicon Investor.
Thanks, Robert Skinner
Please respond to Winsurf@aol.com
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