Disk Drive Sector Discussion Forum Message Board

STOCKTALK

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.

Technology Stocks : Disk Drive Sector Discussion Forum

WDC 181.18

+3.5%

Dec 19 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Stitch who wrote (5322)	1/24/1999 1:18:00 AM
From: Frodo Baxter	Read Replies (2) of 9256

Indicators can be leading, coincident, or lagging. Leading is what you want, the other two are useless (i.e. they tell you what you already know). The reason turns is coincident is this. If a quarter's revenues go up Q/Q, the inventory levels go down. And vice versa. Brownie points if you can tell me why. For the six quarters before the last, SEG's revenue was in free-fall. Despite this, inventories started to go down (turns going up) anyway. This is because of a) channel stuffing and b) reduced build plans as they came out of denial. So maybe I should say inventory turns are usually coincident. In any case, a Q/Q increase in turns coincident with a Q/Q increase in revenue is nothing to get excited about.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next