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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: rupert1 who wrote (70686)	11/1/1999 9:57:00 AM
From: rudedog	Respond to of 97611

Victor - Were there not statements in 2Q (at the time the reduction in channel partners was announced) that the eventual target for inventory in channel was about 7-10 days? I do recall statements to that effect, but can't put my finger on a specific statement. Can you confirm the 2 weeks? In the most recent CC, Capellas stated the goal as 2 weeks and also that the recent adjustment was to achieve that goal. do you think all the other cost savings expected from the reduction to 4 channel partners has been achieved? I don't know, and the press has been spotty. My sense is that work remains to be done both in the positioning of products in the channel vs. direct, and in the way the second tier partners interact with the 4 primary partners. When DELL announces earnings next week, we will get a better look at their cost vs. CPQ, but my gut feel is that CPQ is cost competitive in consumer products but not elsewhere.