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Technology Stocks : Compaq
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To: Roads End who wrote (22001)3/16/1998 3:24:00 PM
From: Jack T. Pearson  Read Replies (5) of 97611
 
According to the WSJ story, Compaq is writing off $500M because they have 250,000 PCs sitting on the shelves (more than the 58,000 IBM has and 40,000 HP has). But that means Compaq is writing off $2,000 for each PC on the shelf. Can those PCs have depreciated that much in one quarter, or even two quarters? I don't believe it! How can that be?! Can anyone explain these numbers other than to say Compaq is hiding some very major problem?
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