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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (5340)	5/24/1999 9:02:00 PM
From: Justa Werkenstiff	Read Replies (1) \| Respond to of 15132

TANDY I snipped this from a Barron's interview this past weekend: Q: What do you like about Tandy? Klingenstein: Their Radio Shack chain sells stuff that isn't susceptible to major competition from the Internet. Customers ask for parts to connect gizmos to thingamajigs. This requires human help. In fact, I think their stores soon will be seen as Internet showrooms. Radio Shack is positioning itself to sell whatever stuff and services are required to bring high-speed data into your home. --------------------- My comment: Now there will be three places where you can get turnkey internet products and installation: your RBOC, your Cable Company and Tandy (Radioshack). Radioshack has 7,000 stores and 94% of the population is said to live within a five minute drive. And with the purchase of ALNK, Tandy has the ability to install the service in your home and back it up with its name. No other retailer comes close. Tandy has created its own retail category and now dominates it. And Tandy should have unique residual revenue agreement with the ISPs that will allow it to take 4-6% of the ISP bill for service on a monthly basis (it did this with Sprint PCS) as long as the account is still in existence. Tandy has such an agreement with Northpoint, a CLEC. So, Tandy will have a growing portion of its earnings from a consistent source. And as a net investment, Tandy has real earnings. The CEO has projected $2.75 - $2.80 for 1999 with 20% - 25% earnings growth going forward. The stock is priced as of the close today at $76. Tandy pays a small dividend.

To: Justa Werkenstiff who wrote (5340)	5/24/1999 9:07:00 PM
From: Justa Werkenstiff	Read Replies (1) \| Respond to of 15132

More on Tandy Tandy plans high-speed Net for homes By Jim Davis Staff Writer, CNET NEWS.COM May 21, 1999, 1:20 p.m. PT Tandy Corporation is getting wired. Tandy Corporation, which operates the Radio Shack chain of electronics stores, has entered into an agreement to acquire Amerilink Corporation in a deal worth $75 million as part of its strategy to wire U.S. homes for connectivity. Amerilink is a 500-person operation that constructs, installs, and maintains cabling systems for the transmission of video, voice, and data in homes throughout the U.S. Tandy said the deal will accelerate the deployment of DSL and cable modem sales in conjunction with Compaq computers, and other products such as digital satellite systems from RCA. Tandy said it will swap its stock for all of Amerilink's common stock in a tax-free exchange. The deal is expected to close by August 1999 pending shareholder approval. The acquisition is yet more evidence that companies are looking to build out their businesses to serve a market where video, audio, computing and communications technologies are converging into one digital stream. Do you want to know more? View story in The Big Picture Go to Message Boards Search News.com The deal enables Tandy to not only install a fast Internet connection to consumers' homes, but wire the inside of the homes to let digital televisions, cable set-top boxes, computers, and handheld gadgets talk to each other as well as control household appliances. "Radio Shack is striving to be the home connectivity store," said Kurt Scherf, an analyst with Parks Associates, a Dallas-based company focused on home networking market research. "What they are looking to do is become a retail kiosk for a lot of these products" by installing broadband connections into 5,000 stores to demonstrate high speed Internet access, then actually installing these hook-ups in homes, he said. With the acquisition of Amerilink, Radio Shack may have "thrown the gauntlet down in terms of what [competitors] may be required to do to get these products into homes," Scherf said. The in-home networking market, including data, entertainment, and structure wiring, could reach $4.4 billion by 2004, Scherf said. Tandy already sells Compaq computers in its stores, which are fitted at the factory with DSL modems, and recently signed a deal to sell products from Thomson Consumer Electronics, makers of the RCA and ProScan brand products. RCA makes cable modems, satellite receivers that offer DirecTV service, digital televisions, and plans to even make a portable audio gadget that plays music in the MP3 audio format.

To: Justa Werkenstiff who wrote (5340)	5/24/1999 9:13:00 PM
From: marc ultra	Read Replies (1) \| Respond to of 15132

I would guess if we get some half assed rally into June and the monthly statistics from May don't show fundamental improvement we could be looking at this ballyhooed inflection point in early June. On the other hand if the market continues to correct I'm not sure where we'll be. I think the recent action shows what will happen to even "raging buy sectors" like semi capex if we head into a bear market where multiple contraction will take no prisoners in high growth areas. Marc