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Technology Stocks : Dell Technologies Inc.

DELL 133.51

-5.2%

2:36 PM EST

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To: William F. Wager, Jr. who wrote (94792)	2/4/1999 5:07:00 PM
From: jim kelley	Read Replies (2) of 176387

Hehe.... Re: Sequential Growth DELL has only to grow an average of about 12-13% per quarter sequentially in order to maintain its awesome growth of the recent past. They certainly performed better than this average this quarter. It looks like CPQ stuffed their channels with an extra months worth of inventory. This is particularly evident in the giant increase in server shipments for CPQ in Q4. Typically these shipments do not go to the retail outlets but to VAR channels where they are less obvious. The huge increase in accounts receivables underscores the channel stuffing. They do not have to pay for the overshipments immediately hence the huge bulge in accounts receivable. CPQ actual growth in unit shipments is probably more in line with HWP's yoy growth. This year CPQ did not factor their accounts receivable like they did last year. It also looks like IBM engaged in channel stuffing. HWP on the otherhand looks like they avoided the channel stuffing of last year. It is ironic that Kumar and the others would seek to reward the stuffers over the more honest companies. Hence DELL , GTW and HWP are engaged in business as usual while CPQ and IBM are distorting the actual end user growth rates for Q4. This subject deserves more attention..... JK

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