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Non-Tech : CompUSA (CPU)
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To: RockyBalboa who wrote (803)11/11/1998 5:07:00 PM
From: Bill Wexler  Read Replies (2) of 3187
 
Though you may disagree...I'm hoping sentiment remains negative for the next few months. I think we should keep the thread right here!

CPU was downgraded today by S&P (I was actually expecting more downgrades). I read a Yahoo chat transcript with James Cramer where he says that CPU's numbers were "terrible" last Q, and even though insiders were buying the stock, he "doesn't understand what they see." In the meantime, Halpin remains cautious about next quarter and people are fretting that iMac sales are slowing.

In the face of all this, CompUSA is opening new stores, remodeling old ones, has succesfully integrated The best Computer City locations and booted the dogs (with a much lower than expected writeoffs). Furthermore, Office 2000 will ship in mid 1999 and Intel has preannounced that demand is booming.

Every single time that CompUSA hits the bottom of the cycle, the analysts come out with all sorts of reasons why the company should be going out of business (the country can only support 100 superstores....NetPCs will take over the world....everyone will do all their shopping on the internet.....ASPs are falling....Intel is early.....Intel is late.....Intel is going out of business because of NetPCs......Apple is going out of business.....everyone will buy everything from Dell......it's going to be a lousy Christmas....Best Buy already sells computers....the consumer will stop spending because of worries about Saddam Hussein.....blah blah blah blah blah blah)

I'm guessing that 1999 will be one of CPU's best years ever. By the time everyone figures it out, the stock will be significantly more expensive.

Patience.
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