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Strategies & Market Trends : Bill Wexler's Profits of DOOM
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To: peter michaelson who wrote (3614)11/4/1998 9:06:00 PM
From: Bill Wexler  Read Replies (3) of 4634
 
<<CPU employees are ill-informed and looking for smoke breaks>>

I've been a long time XON shareholder. I can assure you that the same could be said of many, many gas-station employees. I can assure you that I'm very happy with the performance of XON. Trying to gauge the quality of CPU based on a few surly employees is as ridiculous as trying to value an oil company by the appearance of a pump jockey.

I think that there is a general problem with customer service in ALL chain stores that sell high-tech. For the most part, the low-wage salespeople are not up to date or very knowledgeable about the products they sell.

I disagree that CPU is all that bad, and I know for a fact that management is actively smoothing over the rough spots.

As I said previously, the key to understanding why CPU is an interesting growth story is not because its trying to become the Nordstrom's of computer retailing (in fact, I doubt that's even possible to do without adding unacceptable overhead).

CPU is about delivering the best brands, the most popular items in a clean efficient environment. Inventory turns and pricing power....CPU excels in this regard and its competitors fall one by one.

The company is aggressively polishing its image, remodeling stores and opening new superstores in a more modern format. Visit one and talk to the GM.

I stand by my opinion that CPU stock is at the bottom of its cycle, and is a strong buy.
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