Compaq Message Board - Msg: 3503168

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Technology Stocks : Compaq

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To: hpeace who wrote (17911)	2/23/1998 1:58:00 AM
From: CENTrader	Read Replies (1) of 97611

Steve, ...from Dell's press release... <<Dell managed to reduce inventories by quarter's end to a stunning seven days versus 11 days in the third quarter and 13 days a year ago. By contrast, Compaq's best effort to follow Dell's lead left it with 24 days of inventory at the end of its fourth quarter. Such stellar inventory management allows Dell to take advantage of falling component prices more quickly, thus offering lower sales prices while still claiming higher margins than its competitors.>> How important is reducing inventory days? Will CPQ work to improve on this? I need an education.... Thanks, Bill

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