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Non-Tech : CompUSA (CPU)

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To: TH who wrote (1031)1/24/1999 3:21:00 PM
From: rhet0ric  Read Replies (1) of 3187
 
I request that someone read the Jan 4th news release and share their thoughts.

I was initially impressed by the report, but on further research my feelings are mixed too. My interpretation is that sales are slightly down at regular CompUSA stores and slightly up at converted stores, but they posted record revenues because it's the first Xmas season since the acquisition. If sales and margins at regular stores are both down, only a surprise by converted stores can make for a strong earnings showing. This seems unlikely. However, the stock may rise despite mediocre earnings because it is already undervalued.

rhet0ric
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