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


To: CoffeePot who wrote (3098)12/30/1999 2:53:00 PM
From: Nutty Buddy  Respond to of 3187
 
Slim is not a happy man.

I agree that bankruptcy will be the result as long as CPU stays this course with this leadership. The "digital" model will not work. Cozone is and will remain a drain on the brick and mortar resources. The broader electronic retailers will continue to eat CPU's lunch.

The only way I see them survive is if they can undercut the broader electronic retailers prices, and I don't see how they can do that at a profit. Retail trends come and go, and think the day of CompUSA's appeal is dwindling.

Two Best Buys just entered our market this holiday season. Best Buy undoubtedly has hurt the sales of the one CompUSA here. Best Buy has a better shopping atmosphere than the CompUSA here. That's not just my opinion. The day after Christmas, my Best Buy had all lines open with all lines running into the audio aisles. Neither Circuit City nor CompUSA had such a phenomenon and I went to all three. It was mind boggling to say the least.



To: CoffeePot who wrote (3098)12/30/1999 3:06:00 PM
From: CrazyTrain  Read Replies (1) | Respond to of 3187
 
The sky is falling! (Not just yet, IMHO).

All this bad news has already been figured into the current price. Down a whole 3/16 (as of this posting) of a point with all the gloom and doom says it all. They could go bankrupt but they could also turnaround. It is high risk but at these levels I still think it is worth the risk. They are growing their online business which costs money. There will always be a place for the nations number one computer store. Bottom fishers will see that it is stable at this level.

Others have talked about their CompUSA shopping experience so here is mine. I wanted a certain type of presentation software. I searched the net. I read reviews and tried several demos and shareware programs. None had all the features I was looking for. I went to CompUSA and I bought a program that I had read a review on online but had no demo. After trying it the program it did not meet my needs and CompUSA let me exchange it for a different program.

What other company online or brick and mortar will let you do that? I was a happy camper and I know where I will be buying my software from.



To: CoffeePot who wrote (3098)12/31/1999 9:20:00 AM
From: James Yu  Read Replies (2) | Respond to of 3187
 
What are you talking about? Your comparison is not right, because you use previous qtr profit margin and the same qtr of last year revenues to compare with this qtr's profit margin and revenues. You should do:

The Second qtr of fiscal 1999: revenues=1.77 billion, profit margin=14%
The Second qtr of fiscal 2000 revenues=1.38 billion, profit margin=16%
The revenues decrease 21% and profit margin increases 2%
or
The First qtr of fiscal 2000: revenues=1.34 billion, profit margin=15.2%
The Second qtr of fiscal 2000: revenues=1.38 billion, profit margin=16%
The revenues increase 0.3% and profit margin increases 0.8%
Do you get it?

Bankrupacy? Listen to the analyst.

Princeton, New Jersey, Dec 30 (Bloomberg Data) --- CompUSA Inc. (CPU US) was reiterated "buy" by analyst Rebecca Yarchover at U.S. Bancorp Piper Jaffay.

James



To: CoffeePot who wrote (3098)1/1/2000 1:12:00 PM
From: Michael  Read Replies (1) | Respond to of 3187
 
"Only 128 Million in cash"?????

They have a market cap of just 500M. That is an awful lot of cash.

They will not bankrupt. There is and will continue to be a market for a computer retailer. Management needs to be changed. This company will be turned around. Slim can only have a positive impact. He is not going to watch his money go down the drain.