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Technology Stocks : Compaq
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To: Resry who wrote (17426)2/15/1998 5:35:00 PM
From: Weekapaug   of 97611
 
Resry,

Thanks for clarifying the factor issue for me. I receive letters all the time asking if I would like to turn my receivables over to them? But, I think of my accts rec as a savings acct. Sooner or later they pay! If they become to slow, just add a little to there next bill or give less discount.

"factor it in on acct basis," as you said they do.

Still, I'm a little nervous about CPQ and this factoring issue. I don't hear DELL doing this? They are the low cost producer.

Stragetically it may be right short term with prices falling as fast as they are? Long-term it may also be good if the rhythm of falling prices is constant? As the factoring company is always chasing dollars on older machines that cost more?

Just an opinion,

Ken
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