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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?

To: Ken Brown who wrote (973)	4/5/2001 11:16:44 AM
From: T Bowl	Respond to of 10065

<<How can a company like Dell, which I believed really did have as close as you can get to a JIT inventory system, suffer from too much inventory? >> Well, the fact is that they didn't suffer. They ended last Q with a record low 5 DAYS inventory. But those numbers are aritificially low IMO. To be a supplier on good standing with them(as is the case with others as well), they have forced some of the inventory issues down to the supplier level. Face it, you just can't really have 5 days worth overall out there. DELL is just in a strong position - and everyone wants to get in the door. Now, as for the "inventory correction," here is my off the wall thoughts. What if it really is an inventory correction - just smaller than usual because the actual amount of inventory is so much smaller now that companies have gotten smart about inv control. What if that's one of the reasons this just doesn't feel like a typical slow-down - we don't see hugely aggr unemployment issues, etc.