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

To: Mohan Marette who wrote (9634)	11/25/1997 8:40:00 PM
From: hpeace	Respond to of 97611

Mohan, it's true. the lower prices from the exchange rates help dell and cpq. plus , the asai countries with the exception of thai and one more have kept ordering technology to help increase prodcutivity.

To: Mohan Marette who wrote (9634)	11/25/1997 8:52:00 PM
From: hpeace	Read Replies (2) \| Respond to of 97611

reasons I think the inventory rise for christmas is planned like I've said all along. if that pc isn't thre when they walk in and want it.. then cpq will not get the sale. here is one roach and paperclip By Mark Boslet Staff Reporter PALO ALTO, Calif. -(Dow Jones)- Higher computer inventories in Compaq Computer Corp.'s distribution channel may be shaking the confidence of investors. The computer maker's worldwide inventories have risen to between five and six weeks of sales, up a week or two since the end of September, analysts say. While this is well below last year's level of 10 to 12 weeks, it has worried investors over the past several days. Compaq's shares, as a result, have slipped 11% since Thursday and were down another 81.3 cents Tuesday, to close at $59.188. Inventories at the company have been closely watched recently. Compaq, to better compete with direct marketers such as Dell Computer Corp. (DELL), has been stressing its own direct sales and putting in place build-to-order programs with its distributors. The outgrowth of these initiatives, Compaq has said repeatedly in past months, will be leaner inventories and, consequently, sizable cost savings. The company's target has been two to three weeks of inventory worldwide, analysts said. But along came Christmas, which typically sees higher inventories as computer companies stock retail shelves for seasonal purchases. In the past few days, numerous analysts have released notes on the inventory issue, including Daniel T. Niles at BankAmerica Robertson Stephens. Clients have shown interest in the inventory question and "I wanted to put it in some perspective," Niles said. "Right now (investors) are shooting first and asking questions later." Niles said that because of the holiday need to stock products in stores, inventory always goes up this time of year. Also of note is that inventories at Compaq's build-to-order distributors serving the business market remain at two to three weeks, he said. Inventories have climbed in the consumer side of the distribution channel, where inventories are 10 to 12 weeks, he said. The upshot, however, is that investors see Compaq "talking out of both sides of its mouth," said James M. Meyer, an analyst at Janney Montgomery Scott. The company says it wants to trim inventories, then has an increase. Making the situation worse are jitters about holiday demand, especially with the post-Thanksgiving kickoff to the seasonal buying period just days away. "I was more optimistic 60 days ago than I am today," Meyer said. Some early evidence shows "the (retail) market is a little sloppy," he said. Investor may learn the truth within the next week or so as the early results come in, Meyer said.