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Non-Tech : CompUSA (CPU) -- Ignore unavailable to you. Want to Upgrade?

To: TH who wrote (3006)	10/25/1999 10:47:00 AM
From: AJ Berger	Read Replies (3) \| Respond to of 3187

Shareholders: get your heads out of the sand! Semi stocks are all up because fabrication capacity shortages. If you make chips, you have huge backorders and fatter margins. That means anyone who makes or sells PC's will have to live with lower margins, and lower sales from new product shortages for the forseeable future. Also, I'm sure all the new chips from Intel and AMD just add to consumer confusion, and will help delay many purchasing decisions, forcing below cost discounts and write offs on older inventories. Why do you suppose CompUSA brought back DVD's and other such nonsense. Because this Xmas will be bleak for most PC sellers. Even the Distributors are sufferring, and they usually lead ReSeller losses by a few months. So when Ingram Micro sneezes, CompUSA catches the Flu. The only hardware sellers who's stocks will appreciate will be online internet companies like outpost.com this is because nobody looks at the earnings of these companies, only their market share increase, hit counts, and net sales growth. So if outpost.com attracts significant online sales growth over Xmas, even if they lose a ton of money, their stock will go up, while CompUSA will continue to lose sales, market share, and because it's NOT and Internet company, it's stock will continue to die. And if the only responce I get from this reasonable post is 'Berger is back; time to buy' then that person is much too immature to be trading stocks to begin with, and should put his money back under his rubber sheeted mattress.