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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Michael Burry who wrote (6226)	3/6/1999 5:59:00 PM
From: Shane M	Read Replies (1) \| Respond to of 78476

Mike re: the CPU buyout of Tandy's Computer City stores. At the time the purchase was announced most thought this was a big positive for CPU. If you look at the time of the purchase you see CPU share price rally. If I remember correctly, Tandy was eager to sell - which leads me to think CPU felt they were getting a fair or even "cheap" purchase price. Shane

To: Michael Burry who wrote (6226)	3/7/1999 3:19:00 PM
From: Bob Rudd	Respond to of 78476

Mike: I like your thinking on CPU...the price/sales is attractive if they can get margins up. I bet on Best Buy when everybody hated it on the basis of dirt cheap P/S and moves to increase margins..got cut in half, but then scored a triple despite selling too soon. The recent ugliness will probably continue to pound share price as a bunch analysts downgraded the day of the dive. This is the kind debacle that gets companies to look hard at what they're doing and whose steering the boat. I don't know what changes will come from this, but I bet it's not gonna be the same 'ol, same 'ol at CPU. Some of the inventory problems will be helped by less steep price declines going forward IMO. [BTW...This is one thing that's hurting Dell, flattening price declines cut profits Dell made by turning faster than they passed them along]