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Non-Tech : CompUSA (CPU)

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To: frank meysamy who wrote (1632)3/13/1999 4:11:00 AM
From: blankmind  Read Replies (1) of 3187
 
interesting motley fool article on cpu. could put us over 6 next week.

some snippets:

Balance Sheet

Cash: $402.9 million
Current Assets: $1,504.7 million
Current Liabilities: $1,163.5 million
Long-term Debt: $246.6 million

Ratios
Price-to-earnings: 16.6
Price-to-sales: 0.1
EV-to-sales: 0.07


The Internet presents the largest opportunity and most daunting challenge. To address it, CompUSA is separating its Direct business into a stand-alone company and pumping an additional $2 to $3 million a quarter specifically into the Internet operations. On February 11, it appointed R. Stephen Polley, formerly CEO of Interphase (Nasdaq:INPH - news) , as Chair/CEO of CompUSA Direct. Its Q2 Internet sales grew 100%, and its redesigned website has won accolades for ease of use.

CSFB puts the bear case valuation at $5.52 per share, assuming the Direct business is worth $898 million and that the stores are simply closed (with accompanying charges taken). We're not far from there now.

fnews.yahoo.com
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