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

To: Kal Perry who wrote (3061)	11/30/1999 8:22:00 AM
From: MikeyT	Respond to of 3187

CompUSA needs to spin this unit off and let it run like what CMGI does to its stocks.

To: Kal Perry who wrote (3061)	11/30/1999 11:52:00 AM
From: jgideon	Respond to of 3187

Yes, I am aware of cozone. However, since it has been pretty strongly separated from the CompUSA retail side, it is in effect a separate company. As the last poster suggested, a spin-off would be required to get the value out of that unit. CPU's P/E multiple will be kept low because of the brick and mortar part. Those wanting an internet play will go for a pure internet company. Cozone without the retail connection has no strong advantage over any of the other hundreds of computer e-tailers. It has previously been suggested that a combined company, where you could order over the web, yet get service at the local brick and mortar would be attractive and provide a specific advantage. I doubt that such a business model would be successful at this time because of rampant price pressure. For instance, I saw where outpost.com is providing free overnight shipping all the time. Nobody is planning on making money at that web site right now. Just bleeding cash to gain market share and identity. So, I think the future of CPU's stock price depends on a strategy for their stores. With a potential bump for a spin-off of cozone (see MALL and UBID for an example). jg