Dell's Daytraders Decision Site Message Board

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Technology Stocks : Dell's Daytraders Decision Site

DELL 143.36

-2.3%

3:08 PM EST

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To: Candle stick who wrote (546)	7/31/1997 1:26:00 AM
From: jim kelley	of 1124

Stick, IMO, All compaq can do with this model is cut down its inventory costs by pushing them on to the channel. The pipeline is still there and the channel is not going to settle for a clerks salary. In addition, they are bound to have serious quality problems unless they are going to install system test functions in all of these different channel resellers. Bottom line is they are squeezing the channels profit. I would hate to have to mange such a divers group of companies with divers cultures like CPQ is going to have to do. But they should be able to lower inventory capital and reduce channel cost. It helps but it is not anoptimal solution like DELL. An interesting sidebar to all of this is that apparently these same channels buy 15% of DELL's product already. It is going to be a weird amalgam of companies. regards, Jim K.

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