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Technology Stocks : Xilinx (XLNX)

XLNX 194.92

0.0%

Feb 14 4:00 PM EST

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To: Skeeter Bug who wrote (1371)	8/28/1997 4:25:00 PM
From: Lewis M. Carroll	of 3291

Consider this: You are Altera and you've been second fiddle to Xilinx for years. After a good year of new product introductions, you see a quarter where you are really close to catching Xilinx in revenue. Since your company counts sales to distributors as revenue when product is shipped (as opposed to finally sold by the distributor), why not ship a bit extra to your distributors so you pass your long time nemesis in revenues. The crowd goes wild - the stock price soars. Oops, guess what. Now that they have all this inventory, your distributors don't place new orders since they still have to sell all that inventory you shipped them last quarter. Sell your sky-high stock first and then report weaker than expected demand. Stock plummets back to reality (grin as you take Xilinx's stock down with you). Enjoy the new Bimmer you bought with your gains. Meanwhile in the real world, Xilinx will retake the lead from Altera this quarter, and with the new products will again begin accelerating ahead of them. Can't wait to see how the "technical" analysts analyze this one! Lewis

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