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

To: TH who wrote (1520)	3/5/1999 7:48:00 PM
From: Smart Investor	Read Replies (3) \| Respond to of 3187

Hello all, I still think a GTW/CPU deal makes perfect sense. Mr. Waite is a smart guy. Buying CPU will enable him to have the 400 showrooms he wanted quickly without spending a lot of money. He will also get the $400 million dollars on the balance sheet. GTW stock is still pretty rich right now. Offering one share of GTW stock for every 3 CPU stocks sounds reasonable.

To: TH who wrote (1520)	3/5/1999 8:00:00 PM
From: Kerry Lee	Respond to of 3187

Musings from a casual observer.. -as a prospective retail customer, I like going to CPU because I can browse thru the store at a leisurely pace and touch/play with the merchandise without feeling the heat from high pressure salepeople like you get at stores like Future Shop and Good Guys ..whether this hurts their ability to sell product/close the sale, I have no idea ( and I don't care ). -my other personal experience is the business-to- business section is always understaffed and you usually have to wait in line indefinitely to get counter service..also alot of passing the buck within the store..often the customer service/repair guys send you over to the B-to-B section which only has 1 guy working and several people waiting in line. -having said that, I am monitoring CPU for a buying opportunity because of the core assets and the brand name that has to have some value..I would not be surprised to see a short dead cat bounce rally of 1-2 points, followed by another sell-off in the last 2 weeks of March as mutual fund managers cull their portfolios for end of quarter "window-dressing" ( most fund managers don't want to have to report owning a "dog" stock in their quarterly reports..this is self-serving process but can create buying opportunity for patient investors ). I personally would wait for window-dressing related selling before making entry to minimize risk or further drop..typical of Wall St analysts to issue further downgrades after the cow has left the barn.They tell retail investors to sell at/near the bottom, then they issue upgrades after the stocks have already made 50%+ upmoves. -I observed a similar scenerio play out last summer on Advanced Fibre Communications ( AFCI), when the earnings shortfall/loss of major customer news was exacerbated by end of quarter window dressing. On AFCI, the initial sell-off took it from high teens to 11-12 in August 98. Then the window-dressing took it down to 6 in Sept, then it had a huge bounce-back to double digits by first week of Nov 98.Then typical tax loss selling in mid-Dec created another AFCI buying opportunity.. It rallied in Jan-Feb 1999 to low teens before settling back to 8..It will be interesting to see if CPU has similar trading pattern in 1999.