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Strategies & Market Trends : Value Investing

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To: Michael Burry who wrote (7060)5/6/1999 8:08:00 AM
From: Terrapin  Read Replies (1) of 78476
 
Hi Mike,

I've been watching CPU but haven't gotten in yet. Recent report may give a few opportunities for those interested in low prices. Same store sales down, revenue per sale also down due to falling computer prices. This trough has hurt them to the point where they said they would be opening fewer stores in the next few months. That's the bad news announced after the close yesterday.

However, they stated their intention to sell other electronic devices and were looking into "strategic partnerships". And here's the reason why the price may actually go up today: they again said that they would IPO their internet business.

So, here's my question: would the IPO then fall under the tracking stock category or would it be considered an independent issue since the books are kept separate? And either way, what effect would it have on the share price of the original CPU?

TIA,
Distress brings opportunity,
John
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