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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 78.03+0.8%Nov 14 9:30 AM EST

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To: Tulvio Durand who wrote (47956)2/5/2001 1:41:48 PM
From: Stock Farmer  Read Replies (1) of 77399
 
Inventory and Sales are different things and can go in two different directions.

Let's say you have inventory of 1.9 B$. Let's say 500 M of this is in components: Widgets, Mark V.

If 800 M$ worth of Widgets, Mark V went into last quarters' sales, you can reduce inventory by merely slashing purchasing from a normal rate of 800 M$ to 300 M$ and that 500 M$ pile of widgets will evaporate... without an uptick in sales.

This action on your part might not go down very well with the shareholders of your suppliers.

John.
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