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Technology Stocks : Vitech America tackles Brazil

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To: robt justine who wrote (124)10/30/1997 4:49:00 PM
From: CMon  Read Replies (2) of 153
 
It seems a little unfair to me to compare inventory turns at Vitech to the industry. They are operating in an emerging market. There is no FedEx to deliver from the factory to purchaser in one day, nor can you use a just-in-time inventory system when imported parts can sit in port for weeks.
As for bad debts: Brazil is a Roman law country. You bounce a check you go to jail. Their bad debt experience has been half what they've reserved. Again, an industry comaparison seems inappropriate. As for receivables, watch the DSO's.
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