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

To: William Hunt who wrote (8680)	11/7/1997 5:43:00 PM
From: hpeace	Read Replies (2) \| Respond to of 97611

willaim, I think dell is 12 days and compaq is 36 days. but, dell has no SMT capability. Cpq's volumes get them cheaper prices. Cpq makes their own SMT bds..cheaper than you can buy them. SMT capacity is bound and they are charging premiums. cpq's purchase cost are so low that a sub 1000 pc get's the dealer 10-14% and maybe cpq makes the same margin. a pc is 95% purchase parrts and 1 % labor. I think cpq has a goal of 10-15 days of inventory in 1998. allot of that goal will be acheived by cheating like dell does on JIT. JIT that doesn't reduce the cycle times at vendors don't really count. vendor just inflates their cost. Dell only JIT to back door. they force the vendor to stk inventory. the vendor just adds this cost they charge dell. yes, the WDC story and DD story is great. yes, in january before market correction i was looking for 100 in jan. now I look for 80