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

To: Ron Kline who wrote (87)	7/24/1998 4:23:00 PM
From: freeus	Respond to of 550

re sit tight Thanks Ron, I think you are right. I have had a tendency to sell too early on smaller issues. But really, I can go vacation for a few days and leave CDWI in the portfolio. I dont think Its going anywhere serious anytime soon. Anyone have any inkling when the announcement of on line will be? Freeus

To: Ron Kline who wrote (87)	7/25/1998 6:14:00 PM
From: Terry Council	Read Replies (1) \| Respond to of 550

Ron, I appreciate the amount of research you seem to have done on CDWI. Some information that I might add is in regard to CY99 gross sales. If you take into account that first quarter gross sales per store average was approximately $27,000 per month (same store sales up 21%), and the fact that by the end of this year the total store count will be 320-330, that they will add another 50 or so stores next year---even conservatively, their CY99 gross sales will exceed $100 million---slightly up from CY97's gross sales of $37 million!!! That my friend is growth. Additionally, realize that they still have several million left over from the private placement ($16.2 million minus $7 million for Disc Go Round). It doesn't appear to me that this company will ever incur any long term debt--that means better profitability. This is definitely a keeper. Finally, notice Friday's market--+1/2 on about one-half average volume---a very strong sign. I personally feel that the four market makers that handle this stock did a disservice to us all last Monday--they dropped the stock way too far, and judging from the high opening and the subsequent drop, profited quite nicely by causing panic among some of the less informed investors.