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

To: Michael who wrote (2402)	5/17/1999 11:03:00 AM
From: Michael	Read Replies (2) \| Respond to of 3187

I think the auctions are a great idea. It is a great way to unload obsolete or near obsolete merchandise for a decent price. The Bloomberg article talks about selling shares to the public. I think this is okay as long as the buld of CompUSA.Net is retained by the company and therefore the current shareholders. Here is the Forbes article: Rebooting CompUSA IS THERE STILL a need for a computer store when manufacturers are practically giving personal computers away on the Web? Dallas-based CompUSA, one of the nation's largest computer retailers, just reported a quarterly loss of $5 million on sales of $1.7 billion. The shares (NYSE: CPU) have slumped from $36 to $6 in the last 18 months. Don't give up hope. Chief Executive James Halpin says he'll announce within six weeks a store makeover that will likely emphasize products like digital cameras, high-tech toys and computer-networking equipment for the home. At the same time, Halpin is revamping on-line offering CompUSA Net.com, which could eventually go public. With a market value of $600 million, 10% of sales, CompUSA isn't getting credit for any reformation. Egghead.com, a retailer that closed all of its stores to focus on the Web, sports a market value of $407 million, nearly three times sales. Newcomer Onsale has sales of $260 million and a market cap of $466 million. Halpin pulled CompUSA out of a tailspin in 1995 by cutting costs and emphasizing computer services. He just might do it again. –CHRISTOPHER PALMERI