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

To: Smart Investor who wrote (1941)	3/30/1999 4:17:00 PM
From: Mark Mentges	Read Replies (2) \| Respond to of 3187

CompUSA Web site - IBM Stockholders? What gives with the two categories on CompUSA's new .NET web site - IBM Employees and IBM Stockholders? I knew they had some relationship with IBM, but can anyone explain what this relationship is? I thought long ago that IBM might have some interest in CompUSA as a distribution channel - does IBM own any shares?

To: Smart Investor who wrote (1941)	3/30/1999 7:28:00 PM
From: AJ Berger	Read Replies (1) \| Respond to of 3187

CompUSA may soon end up with Egg on it's Face I've always admired this company, but must report here a fundemental trend that is beginning to worry me, and should concern shareholders here. I only know of the New York City area, but assume the Big Apple is a good representation of what is happening elsewhere. CompUSA is opening more Sales Anex's in New York. In my opinion, this is a BAD thing. Let me explain. CompUSA has always been like the "Home Depo" of computers. You walk into a huge warehouse like store that is usually off a major highway. You know that they will have the largest selection of items and variety of brands anywhere, as well as promotional pricing on hot new items. These small Sales Annex's a completely contrary to this business model. The Annex's I've seen open recently are in areas well penetrated by Staples, and smaller White Box makers, and software stores, and while CompUSA looks so flashy, it often cannot stock enough variety, or offer better pricing to be worth more than a single visit. In this age of the Internet, and sub-$1,000 PC's, CompUSA is making the same mistake that EggHead made half a dozen years ago with their pathetic attempt at retail stores. CompUSA is actually being surpassed by their own formula by MicroCenter, which is bigger and much better than CompUSA's biggest store in my area. When a stock goes down like CompUSA's has, you can believe it's a bargin if you like. But as hardware stocks remain under pressure during a bullish market, the price drop is probably telling you something more than you are willing to hear. I just wanted you to hear another side of the CompUSA story, and that is, they are getting away from their roots, in the wrong direction, and they will unfortunautly for shareholders, fail miserably.