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Technology Stocks : Dell Technologies Inc.
DELL 133.35+0.1%Nov 28 9:30 AM EST

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To: Chuzzlewit who wrote (80228)11/14/1998 6:57:00 PM
From: larry  Read Replies (2) of 176387
 
Chuzz and all,

Can you guys give me a good explanation on this? Thanks.

I had the same question, but this YHOO! board posted said it better than I do:

"Two quarter's Dell's DSO's were 35 days, one quarter ago they jumped to 37 days and this quarter they jumped to 40 days.

You're right, a bump in DSO's is not definitively a sign of problems but it often is and Wall Street knows this. So in May the Dell CFO said on the conference call that he was not happy with the rise in DSO's and would bring them down. Well, they didn't go down, they went up and that is worrisome.

If a company does a disporoportionate amount of their sales at the end of a quarter, their DSO's go up. They also go up if the company is offering aggressive terms. Either one of these scenarios is negative. There have been many cases of first rising DSO's then a missed quarter."

good luck,
larry!
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