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Technology Stocks : Compaq
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To: Bald Man from Mars who wrote (20773)3/8/1998 7:37:00 PM
From: Jack T. Pearson  Read Replies (1) of 97611
 
I agree. Compaq will have to trade profit margin for lower inventory. That is a near term problem, but it may also be a long term problem for Compaq. Until Compaq comes up with a business model that can get product to the customer fast without 4-6 weeks of inventory in the pipeline, I think they will be in trouble. Component prices drop and component performance improves at astonishing speeds in this business. Companies that can operate with low inventory have a big advantage.
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