Boy, I can't smell any bears on this thread. So, forgive me, I will be. First as a disclaimer, I am long CPU. Second,7.2% decrease in sales is insain. That is real bad. It can't get much worse than that. You want to know where the profits went? In the 7.2%. I really hope the street likes this report. But, from my perspective, this is short term very bad. LONG TERM, good. I think that the internet business will continue to grow. You will eventually see some stores close do to the internet. That is fine. It will improve profits.
The stock will probably not move much tomorrow. When the market closed the stock was at 6 15/16. It is now at 7 and about another 300k of shares traded.
Maybe I am not to smart, but I personally think that this quarters profits went with the decrease in sales. If this company continues to loose sales at this clip, they will be bankrupt. It has got to stop.
I have left a message for IR. I want to know what plan CPU has to stop the bleeding on marketshare. I have been to CC and BBY. CPU guys from what I can tell are the most knowledgeable. Additionally, CPU is computers, if the continue to loose business to companies that sell appliances and car stereos, then I think that the quality of management must be questioned. |
