SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Roger's 1998 Short Picks
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Roger A. Babb who wrote (15434)11/14/1998 7:05:00 PM
From: larry  Read Replies (1) of 18691
 
Roger,

Can you give me a short explantion on this? This is some Q about DELL's recent quarter results.

"Days sales outstanding rose by 3 days. This suggests DELL added 150 million to revenues in the last days and weeks through aggressive sales tactics.

Operating expenses dropped. This suggest DELL froze spending as sales came in lower.

Taken together, these two items probably added two or three cents to earnings.

It looks as though Dell did everything they could just to get to an acceptable level of earnings.

The scary part is that you can't stretch forever."

And more......

"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.

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."

What's your take on this comment?

thanks,
larry!
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News