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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (10386)	6/8/2000 11:14:00 AM
From: TraderEd	Respond to of 17183

EMC's flow ratio will always be high in comparison to other companies because of the large dollar value of "inventory" undergoing testing. I have walked through football field sized cold and hot rooms full of storage equipment under test before being shipped to customers. All EMC's products undergo long testing periods (I don't quote the exact time period as I don't remember it specifically)before being shipped. Any failure, no matter how small, causes a rework of the faulty component and a completely new testing procedure for the box starting from the beginning. This "apparent" bulge or resulting high inventory values has been raised numerous times in CC's and the analysts finally have become to understand that it is a fallout of the EMC business model. It is also, one of the reasons for their success and the resulting high rate of dependability of their products. All of the above my humble opinion.