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Technology Stocks : Compaq

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To: QuentR who wrote (55598)4/5/1999 10:13:00 AM
From: Steven N  Read Replies (2) of 97611
 
Bookkeeping article:

Investors who care about fundamentals long have known that unusual surges in such bookkeeping categories as accounts receivable -- the measure of what a company's customers owe -- signal trouble. In the fourth quarter of 1998, for example, Compaq Computer (CPQ) reported a very impressive 48% increase in sales from the same quarter of 1997. But the company also showed a huge 142% increase in accounts receivable over the same period. Was Compaq experiencing the same problems that had sunk the stock in late 1997? When the company reported slow sales in January, Wall Street certainly leaped to that conclusion and punished the stock

The entire article can be read here-
moneycentral.msn.com
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