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.

Strategies & Market Trends : Bill Wexler's Profits of DOOM -- Ignore unavailable to you. Want to Upgrade?

To: Hank who wrote (4300)	1/29/1999 5:02:00 PM
From: Bill Wexler	Respond to of 4634

I wouldn't even think of selling CPU before it hits 25.

To: Hank who wrote (4300)	1/29/1999 5:13:00 PM
From: Bill Wexler	Read Replies (2) \| Respond to of 4634

CompUSA's Shares Rise on Expectations for Internet Operations quote.bloomberg.com Dallas, Jan. 29 (Bloomberg) -- CompUSA Inc. shares rose as much as 15 percent on expectations the largest U.S. computer retailer is focusing on Internet sales and may set up that business as a separate company, analysts said. CompUSA rose 1 3/16 to 12 11/16 in late trading of 4.2 million shares, more than twice the three-month daily average. Earlier they reached 13 3/16. The retailer has invested heavily in infrastructure to support direct delivery and service and has made its Web site, compusa.com, easier to navigate, analyst Rebecca Yarchover of Credit Suisse First Boston said in a report today. It may now decide to set up its direct-sale business as a separate company, which would let it ship products without charging sales tax, the way true direct sellers do, she said. ''Consumers would now get true Internet pricing, but also the service and security that comes with buying from a large, national retailer,'' Yarchover said. CompUSA Direct includes the retailer's mail-order and Internet businesses. Dallas-based CompUSA earlier this month said fiscal second-quarter sales from the division rose 48 percent from the year-ago period. Federal rules dictate that companies must charge sales tax only in states where they have a physical building, such as a store, headquarters or warehouse. With 210 superstores, CompUSA is forced to charge tax on its direct sales, Yarchover said. CompUSA declined to comment on whether it would consider creating a new company for CompUSA Direct. ''The Internet is a growing area for us,'' said Suzanne Shelton, a company spokeswoman. What differentiates CompUSA's site from other Web sites is its full breadth of products, Yarchover said. Compusa.com offers 50,000 items, compared with about 6,000 in its stores, Shelton said. The retailer also doesn't charge the same prices on the Web as it does in its stores, which lets it better compete with other Internet sellers, Yarchover said. CompUSA will have to monitor returns to make sure people aren't buying products off the Internet, and then returning them to the store without a receipt for the higher price, she said.