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

To: TH who wrote (1997)	3/31/1999 9:12:00 PM
From: Sparky65	Respond to of 3187

There is a post on Yahoo called "Mixed Bag for CPU". I am going to read it now to get the scoop.

To: TH who wrote (1997)	4/2/1999 8:15:00 AM
From: Richard Makowiec	Read Replies (3) \| Respond to of 3187

Closed the week up..not as much as we would have liked, but still up. This is significant since an immediate pullback to the $6 range would have been hazardous. It's kind of funny how the sky is falling over CPU...at least that's what everyone wants you to think. Hey, razor thin margins are not fun for anybody but they are a fact of life in some segments. BBY had/has the same problem with all those CD, VHS, Nintendo, camera, vcr, etc. sales. Strategy is always the same...market set the prices so therefore to increase profits, costs must be reduced...sales-cost=profit. Another note is the current theme...today it seems to be that pc sales prices are the doom & gloom for Compusa...well, what do you know, you mean to tell me that the consumer will have xtra coins in their pocket after the initial purchase of a pc. How nice! Might seem to some that a new theme could emerge from all of this...now that the consumer has those xtra coins perhaps they will be spending them on higher margin software...maybe ink...paper..etc. Personally, I think this is what the new them will be in a qtr. or two...once the boys decide to run the stock, the fuel or theme will be that it was a good thing that pc prices dropped...more masses became attracted and ultimately they end up buying more of the higher margin goods for their box. Hard to tell when this will all take place...just a hunch of course...but patience allows one to hopefully participate in the trend from here. Pretty low odds of a buyout at this point but not low odds that pc sales and related items will push this thing to new highs 1 year from now. I just hope that the software industry keeps releasing blockbuster titles...the kind of stuff that lures the consumer to the store for the purchase as opposed to buying online and having to wait those xtra 3,4,5 days...thank goodness the size of these programs do not facilitate instant download purchases over the net for Joe/Mary consumer...that would be a disaster! Happy Easter everyone...CPU has a 75% chance of new highs next year and a 95% chance of double digits (midlevel) later this year in my opinion. Great posts by everyone here, nice to see the thread contributing the way it does. I don't have any comments on the spin-off or IPO...mostly clueless here as to what will occur. It would be wise for Halpin to IPO it and raise capital for the new split venture. Why fund it internally when the market is basically handing mega free money away for just a being, "Internet Complying". Selling a few million shares to the street at $15-20 would offer the financing of CompUSANet for a couple years. It would be foolish to not tap into this funding...we'll see I guess. Rich