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Non-Tech : CDWI CD Warehouse -- Ignore unavailable to you. Want to Upgrade?

To: Art who wrote (56)	5/15/1998 8:11:00 PM
From: Art	Read Replies (2) \| Respond to of 550

Earnings growth looks good. Same store numbers up 21% and continued expansion of the existing store base is happening as planned. I hope they plan to use some of the money from the private placement to get servers up and running to allow them to begin web-commerce. Selling used CD's over the net is a fine idea. I am concerned that they are not getting to this fast enough. I am not sure that I would spend hordes of money setting up new stores though. Their greatest asset is the proprietary data base they use to price the used CDs they buy. Were I king of CDWI, I'd approach Wal-Mart (or some other large retail store with a CD area) and use their space. Heck, even McDonalds now puts their franchises into Wal-Mart, why not CDWI? The CD area at Wal-Mart can't be pulling its weight in those stores any more than they are anywhere else. (Which, BTW, is why Wal-Mart was willing do get rid of their own concession area and give space to the golden arches.) By setting up an arrangement with a large entrenched base (no matter who it is), they could increase sales by a huge measure, and with one master stroke, increase supply allowing them to feed net demand (once they get that up and rolling). If they did this, their stock would explode upward to $40 or more. If they don't do this, someone else will. A database like they have should be leveraged while it is the only one out there. I just hope these guys (at CDWI) have the vision they need to make things work. Art