SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : CompUSA (CPU)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: James Yu who wrote (1656)3/15/1999 10:40:00 PM
From: TH  Read Replies (1) of 3187
 
James,

Dell is a real smart guy, no question about it. Do I see a tie-in with CPU in this story? I really don't at this point.

If Dell were to buy CPU then the store would become a very different animal, at least from a pc brand perspective. I assume that the B&M cost of Dell/CPU would be somewhat equal to the middleman that Dell has eliminated with their current business model. If Dell ever goes B&M, which I don't think they will, then I envision a small store where maybe two to five models are offered. The primary function of this store would be to expose the retail consumer to Dell and let them order a custom machine if one of these two to five generic models do not fit their needs. Dell is all about low inventory and CPU or most any B&M is all about high inventory.

The good news is that someone has to sell those 100 million boxes he is projecting in the next ten years. Hopefully CPU can position themselves to capture a bigger percentage of that market with better margins.

I have a gut feel that we might see a little upward movement in CPU this week. The news from the company is long overdue, and I am considering re-entry for a point or two move.

I do expect at least a point or two move on the direct spin news, which should be out no later than the end of the first week of April. Unless Hairpin was lying about that too.

Good Luck

Thurston
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News