During CNBC's interview with Michael Dell, he was asked, (paraphrasing) "Isn't it true that Dell and its 10 day inventory turnover is increasing Dell's margins WHILE companies like CPQ, as it was reported by one analyst yesterday, is hurting because of an 8 week inventory ?"
If CPQ does (?) have an 8 week inventory now, it is probably due to stocking up the retailers for Christmas. Is this true or not ?
As for GS's "grade-adjustment" yesterday, my understanding is the GS decided it was overHEAVY/exposed on techs in their private-client (GS/PVT) recommeded list area with 4 companies (INTC, IBM, MSFT, and CPQ) and decided to pare this down.
GS's logic (although not always correct) was that (1) INTC and IBM were at a greater upside-price poential than CPQ, and (2) MSFT has been a key long term darling of GS and shouldn't be pared. .... So, CPQ was chosen to be pared from the GS/PVT list but NOT dropped from the overall RECOMMENDED list since it still is a good stock to buy.
GS is NOT down on CPQ just a bit cautious on techs in general. Also, over time I have noticed that GS seems not to have a well-tuned ear or nose for the PC sector and where its going. |
