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Non-Tech : CompUSA (CPU)

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To: Smart Investor who wrote (1386)3/4/1999 5:29:00 PM
From: hoyasaxa  Read Replies (3) of 3187
 
RE: buy-outs, bottoms and bankruptcy.

Buy-out: Level one bought for 100% premium, not 50%. CPU's management would only want same premium, or, more, at these levels. And Dell and other companies are building electronic commerce not brick and mortar solutions (exception, gateway].

Bottoms: $4 in cash a good buffer, as is p/s ratio, not to mention bargain buyers.

Bankruptcy: Coverages appear fine as does relationship with lenders so...why bankruptcy?

Thanks.
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