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: Herc who wrote (2372)	5/7/1999 10:13:00 AM
From: Mark R	Respond to of 3187

I think the main reasons why CPU just got a lot more interesting is that management is finally awake: 1) Cost reductions, store openings slowed 2) Consultants brought in to look at all phases of business (now it finally begins to look like BBYs turnaround) 3) Change in merchandising direction..more consumer electronics 4) SSS are even with last years qtr so far 5) They are finally agreeing that more employees in the stores means better sales (duh) 6) It seems likely that they will close some underperforming stores and they're most likely to be old cc stores and that will reduce the cannabilisim and increase profits. 7)They said they will IPO or partner the net business. It's official. They also said they will continue to own a portion going forward (if they IPO) which is good for current shareholders. 8 Their CPU PCs are doing better than expected at higher margins. 9) They used the words "redefine the model" which is what they have needed to do and say for months now. Polley said he was working on net partnerships in internet time. I would expect some real announcements soon of some significant deals in this space. The store stuff will take much longer and my guess is the fourth quarter will not be pretty.