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

To: MeDroogies who wrote (95855)	3/8/2002 12:37:53 PM
From: rudedog	Read Replies (1) \| Respond to of 97611

Duke, MeD - the question is weeks of inventory in the channel. CPQ's internal inventory is not particularly important financially except inventory turns, which gives visibility into how well they are doing at streamlining direct sales and build to order. The weeks of inventory in the channel can not go down if they stuff the channel, that measure has to go UP. Since weeks in the channel was down slightly, I can't imagine that they stuffed. But when journalists or analysts knock around terms like "inventory" without any definition of what they mean, it can be confusing.

To: MeDroogies who wrote (95855)	3/8/2002 1:56:48 PM
From: The Duke of URL©	Read Replies (2) \| Respond to of 97611

Okay, MeDroog, according to rude you mean the inventory IN THE CHANNEL. Well, if there are claims of channel stuffing and you observe that there is very little evidence of excess inventory in the retail channel, if your observations are accurate, that means that there is sell through. So, you are telling us, that based on your observations, there is no higher than normal stuffing, assuming some stuffing, only higher than normal supply, met with higher than normal demand. [Edit] Of course, if that is true the talking heads on tv who are claiming stuffing, are communicating through some other orifice than can be seen on the screen. Is that it??