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

To: blankmind who wrote (1603)	3/11/1999 3:22:00 AM
From: Doug Meetmer	Respond to of 3187

My opinion is that the stock price will go lower if the losses are significant. for example, if we have $4 /share in cash and the company loses $.05 /share, big deal. If however, the company loses $2/share, then the $4/share in cash will not act as much of a support as we head to the toilet. I never like to buy falling knives, but think of it like this- how much lower can it go from here anyway? The real downside is maybe another $2/share but no way are they headed for bankruptcy, given the strong balance sheet. If you buy now and hold the stock and not look at it for the next three quarters, there is an excellent chance we could be several dollars a share higher than we are now. One thing I dont like about the stores are the less than helpful people who work there. If you are going to try to distinguish yourself from a DELL direct, you need to provide something more, such as service. The people who work at CPU know nothing about their products. you might as well be shopping at Circuit City.

To: blankmind who wrote (1603)	3/11/1999 8:56:00 AM
From: Vizzini	Read Replies (1) \| Respond to of 3187

my understanding is boston chicken had a greater book value than its share price, and we know where boston chicken ended. BOST is a different animal. Relying on book value is dangerous if you don't examine what it is composed of. In the case of BOST, they fronted new franchisees, and took back notes. So after a while, their assets consisted substantially of notes receivable from franchisees, and interest income from notes receivable became a significant portion of revenue. Problem was, many of the franchisees were losing money and couldn't pay the interest or principle on the notes. So what was the real book value of BOST? In reality, a small fraction of what was stated. CPU's assets on the other hand are mostly cash and inventory. Much higher quality than BOST.