Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: TH who wrote (1074)	1/29/1999 12:16:00 AM
From: Dale Stempson	Respond to of 3187

>>> ...I would like to hear and understand others thoughts regarding the Jan 4th release. <<< Well, let's see.. Desktop PC units up 50% (great) ASPs dropped 20% (not so great) Margins dropped sequentially 75-100 basis points (result of ASPs and promotions) Total sales were $1.78 billion, up 22% (met estimates) Same store sales dropped 4.7% (sales promotions) Computer City stores sales (good) CompUSA Direct sales up 48% (very good) Result: Analyst consensus estimates drop to 17 cents for the quarter and to 67 cents for the year. (reasonable reaction to margin decrease) IMO, going forward: It appears we now have a handle on the Computer City conversion, (a positive). The SAP implementation is bound to cause some headaches, (a negative). Competition will continue to be intense, (a neutral). Margins should show slight improvement, (a positive). The PC market should continue to be strong, (a positive). Comparisons to last year should look good, (a positive). Y2K related spending should add to sales, (a positive). Stock price is cheap, (a positive). Result: I bought the stock today. Regards - Dale *After reading a recent post, I guess I must add: One disgruntled warranty customer, (a negative). ;(