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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Michael Burry who wrote (4169)	5/26/1998 11:44:00 PM
From: Shane M	Respond to of 78530

Mike, Thanks for the comments on CDWC. Since you mentioned slow PC demand I thought I'd post this as a follow up since this was a concern of mine also. Desktop PCs only make up around 15% of their revenues, and I figure add-on peripheral sales may compensate nearly fully for the drop in avg selling price. Now a drop in laptop/notebook computer prices would be much more significant IMO. I am unsure of the probability there, but have the feeling that it's coming at some point. 10Q 5-15-98 The following table presents net sales by product line as a percentage of total net sales as well as the comparative growth rates in both units and dollars for each of the periods noted. Product classifications are based upon internal product code classifications and is retroactively adjusted for the addition of new categories but not for changes in individual product categorization. THREE MONTHS ENDED COMPARATIVE UNIT MARCH 31, 1998 PRODUCT MIX GROWTH --------------------------- ---------------- ---------------- 1998 1997 1998 1997 ---- ---- ---- ---- Notebooks & Laptops 20.2 % 24.2 % 16.7 % 52.9 % Desktop Computers 15.6 13.2 88.2 86.3 Printers 13.4 11.9 55.7 49.6 Software 12.8 12.9 24.1 53.9 Data Storage Devices 11.2 10.5 22.3 72.3 Network & Communications Products 8.5 8.8 91.1 15.6 Monitors & Video Products 8.3 8.1 49.4 63.2 Add-On Boards & Memory 4.5 4.6 25.2 113.1 Input Devices 2.9 3.0 29.0 53.2 Multi-Media Devices 2.1 2.1 64.7 63.8 Other Accessories 0.5 0.7 3.7 167.6 ---- ---- ---- ---- Total 100.0 % 100.0 % 35.8 % 100.0 % ===== ===== ===== ===== The way that the stock is "tanking" right now I'm going to wait and see how low it will go given the current environment. Certainly aren't many buyers right now. I really felt that the first quarter financials looked pretty good in spite of the pricing pressures on PCs.

To: Michael Burry who wrote (4169)	5/27/1998 12:18:00 AM
From: James Clarke	Read Replies (1) \| Respond to of 78530

Mike does have a real job. Don't know when he finds time to do it...Everybody should read Mike's links to Whitman's interview a few posts back - its a keeper. Asia. Whenever you want to debate whether something is contrarian or not, there is an easy way to settle that: 1) Is the price down big. YES 2) Is coverage in the financial media overwhelmingly negative. YES To go beyond that is splitting hairs. Sure there are smart investors buying Asia. But look at the price movement. A lot of people have sold low and are still selling. And of course they are not admitting it. I lived in Asia for two years not that long ago. The price of these markets kind of makes me want to go back just to make sure everything is still there. Sleeping well. Jim