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

To: Michael who wrote (2497)	6/3/1999 4:28:00 PM
From: kennbill	Read Replies (1) \| Respond to of 3187

No going to happen.. I doubt that CPU inventories (stocks) what they well on the internet. They send orders to the suppliers and they (the supplies or manufacturer) ship direct to customers. No warehouse costs, no retail stores to maitain. If your theory is correct, why is e.commerce booming??

To: Michael who wrote (2497)	6/3/1999 4:44:00 PM
From: AJ Berger	Read Replies (3) \| Respond to of 3187

I guess you don't shop too much online. case in point; I wanted a new Logitech Marble Mouse. Staples and CompUSA has them for $60+tax, online the average price you pay is under $50-notax including 2-day shipping. I drive past both stores on the way home from work each day, yet ordered from my desk and saved $10. Sure, If I wanted and nickel and dime items I'd stop in, but those kinds of things are not enough to keep these retail operations in business for much longer, especially with places like OutPost.com offerring free overnight shipping on many items to help drum up new business. you should see a lot more Etailers doing gimmicks like that to help attract new and repeat customers away from CompUSA. I love CompUSA, but would I invest in it's future? No way! if the Staples gossip helps make it an event trade, I may get in and out on these rumors, but I would not expect them to overpay for CompUSA despite it's industry leader status. Staples was willing to overpay for a rival to illiminate a competitor, and potential increase it's margins and penetration in the longer run. Here they are buying a diversification that they are already handling quite well on their own. And they are buying them for CPU's distressed pricing and position in the marketplace, and not because they really think there is dynamic growth and profits to be made here, IMHO. If you have looked in most Office Supply catalogues of late, they are full of Computer stuff, so the lines have blurred between these two Retail operations, and Staples is simply capitolizing on that fact; as buying a laser printer and toner is as simple and cheap a decision as buying a new stapler and staples. If you think Staples will pay much more than what CPU is trading for currently, think again. Just look what happened over at the WCOM and SKYT threads, and you'll see what I mean.