Bill Wexler's Dog Pound Message Board

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Non-Tech : Bill Wexler's Dog Pound

REFR 1.730

+10.2%

Nov 11 3:57 PM EST

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To: Bill Wexler who wrote ()	3/3/1999 9:22:00 PM
From: Bill Wexler	Read Replies (5) of 10293

Dog #1: CompUSA (CPU) 9 9/16 ...strong buy recommendation Talk about a stock that everyone hates. Retailing is lousy, PC sales are slowing, and there is widespread perception that the competition will just make this company irrelevant. Problem is that the company...for some odd reason...continues to be the #1 retailer of computer goods quarter after quarter. Unlike its interent-based "competitors", CPU also manages to turn a profit. CompUSA recently announced a spinoff of its direct sales division and the company is sitting on nearly half a billion in cash. It's debt is easily serviceable from exisiting cash flows. CPU has been written off many times in the past, yet management has always done a great job of growing the company in a tough retail environment. Insiders were buying heavily in the summer of 1994 while analysts were predicting bankruptcy. The stock rose tenfold from that time on. Recently, the shares have been hammered from a high in the mid 30s to 9 a share. Insiders started buying heavily again in the fall and winter of 1998. This one is going to take a lot of patience and there may still be some downside, but I am convinced that the stock is going to return strong.

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