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

To: Bill Wexler who wrote (813)	11/12/1998 11:52:00 AM
From: James Yu	Read Replies (1) \| Respond to of 3187

For the record, I don't buy the S&P's equity analyst Tom Graves's downgrade. Let see what he said, "I expects the stock to suffer from lowered earnings estimates, competition, and concerns about the economy." 1. lowered earnings estimates: I put a question mark (???) 2. competition: The competition always exist in retail markets but CompUSA advanced a very strong position to its competitors. 3. concern about economy: I excerpt a conversation from CBS MarketWatch - Economic Preview: Real economy: When the Fed cut rates on Sept. 29 and then when Greenspan moved on his own on Oct. 15, the chief worry of the Fed (at least in public) was that a credit crunch in financial markets could infect the real economy. But what about the real economy? Is it strong enough to maintain its momentum while trying to pull the rest of the world out of the ditch? What will the upcoming data tell us (and, more significantly, what will it tell Greenspan)? "The real economy looks strong," said Chris Varvares, president of Macroeconomic Advisers in St. Louis." We're heading for 2 percent [economic growth], not zero." Retail sales: "Retail sales are going to be pretty damn good," Varvares said. Auto sales were strong in October and chain-store sales were up 4.8 percent in October, signs that the consumer hasn't given up yet. "We have a lot of momentum," said Michael Niemira, an economist at the Bank of Tokyo-Mitsubishi who tracks retail trends. Niemira said he doesn't believe consumer confidence is eroding as fast as some believe. "As long as inflation holds low, that'll be a supporting factor for spending," Niemira said. Best wishes James