Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Mark R who wrote (2046)	4/2/1999 2:11:00 PM
From: TH	Respond to of 3187

Mark R, Thanks for making the call. I am surprised you got to talk to a human. I don't like number 3 at all. A spin is a spin, not a subsidiary. At least not in my book. Hope there is more good news to come from the new team. I agree, medicate the Hairball and send him out to pasture. Hopefully he will be in a deep hole in that pasture. Good Luck Thurston

To: Mark R who wrote (2046)	4/11/1999 6:29:00 PM
From: Ken Whiteside	Read Replies (1) \| Respond to of 3187

You guys are skimming over the 7.2% decrease. Here's the reality. CPU's credit is very negative according to 4-7 Moody's news. "The ratings outlook is negative." CPU's spending over the next 2 years will put them under! "Moody's expects that CPU's spending needs will exceed its cash flow from operations over the next two years, severely depleting the company's cash reserves and possibly leading to borrowings under the bank facility." Improvement is not forseen! "The new ratings also reflect the lack of a significant new product on the horizon to spur replacement sales, and by slow growth in penetration rates of home computers." Credit warnings issued that if there is no quick improvement, ratings dropped again. "An inability to improve store productivity or secure alternative financing could result in further negative rating pressure within the near term." "CompUSA is losing market share." This news is why they are getting hammered IMO. I think purchasing to chain of brick and mortar was a major mistake for them. I hope they can overcome that mistake by being smart enough to realize that tech business is going direct. Otherwise they are going to lose it all. When you lose your credit you are in serious trouble. Until Compusanet news starts really coming forth, this will be a sad stock for most. I hope they follow the ZD path. Pull off an IPO to generate a ton that they can drain off of. Ken . . .