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

To: jeffbas who wrote (6462)	3/29/1999 1:43:00 PM
From: Michael Burry	Respond to of 78523

And all of a sudden I'm a different kind of "net" investor... There is something irrational happening in CPU today, but some of us saw it coming. We already knew that CPU acquired the first requisite property of any bona fide stock market rocket: an N/A PE on Yahoo. Investors today therefore lose their only barometer. Remember, this is a good thing. And we could see it coming (because CPU told us so a few months back) that they were going to revamp and spin-off their 'net operations. But we also know that the typical CPU shareholder can't see more than a few minutes into the future. So then it crashes drastically to the high $5's, and for this price, I'm thinking bargain. After all, it's CompUSA. The name has as much potential for becoming gold-plated like AOL. In fact, the whole situation reminded me a lot of when AOL was a "commodity" supplier of outdated internet-for-babies-and-old-folks-since-they-were-the-only-ones-that-would-tolerate-not-ever-getting-online-on-the-first-twenty-tries. So then today, CPU announces something that they already announced: a revamped site for on-line computer sales. The volume triples in 2 hours and the stock jumps 22%. Why? Oh, because now the site's up. Today's typical investor can now use that goldfish memory and click right over and see it. And then click right over to their broker and buy the stock. And the institutions, pathetically, are playing the same game. Mike