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

To: HDC who wrote (10086)	12/3/1997 7:12:00 PM
From: hpeace	Read Replies (2) \| Respond to of 97611

cpq has released several times through analsyt that their sub k business turns at 100 times a yr. their are several who realize the importance of margin a smaller margin product that turns 100x a yr. Jack and Kai certainly do. kai had 2 posts on it and I had one one it refering the 100x turns and the 15% ROE....

To: HDC who wrote (10086)	12/3/1997 7:46:00 PM
From: jim kelley	Respond to of 97611

Duncan, CPQ does not manufacturer the low cost PC's. The are apparently shipping them from the manufacturer to the retailer. So the turns amounts to their shipping and handling time. We do not know the inventory turns of their manufacturer. Something to think about.....

To: HDC who wrote (10086)	12/3/1997 11:03:00 PM
From: hpeace	Respond to of 97611

Duncan, the turns of FIC are absolutley fab. The parts go in and out quicker than dell and cpq and a Mc Donalds. I can hit a golf ball to the plant from Where I work. The Operational mgr is an ex dell guy. Cpq helped them set up the automation since this pc lends itself well to that. I do not know the exact burn in time , but I have watched the line work during lunch hrs of mine. Burnin is what determines inventory turns and it always has. FIC has a second shift since their burnin capacity doesn't equal their line balance. The pacing mat'l item use to be the cyrx chip. Don't know what it is now. I'm going to try to spend a lunch hr there soon. There is no complexity to this unit and not any confiruation variety to slow things down. FIC may assemble other things..so I don't think it's as easy as looking at their financials which I don't think we can... FIC's contract would also let them assy another pc. They could even make some for Dell or HP or IBM. Until 1995 Cpq never really wanted turns higher than 5 or 6 for fear of losing sales. But, cpq's turns are 100x on them. In a since it's like making apple Pc's. I remember watching them make apples in the early 80's. I went there to review their automation, I didn't make the mistakes they did because of the trip. I saw IBM's automation too. They both over auto-mated the assembly of their pc's and under automated the mat'l logistics and simplification of the business processes. They also, had no world wide system that was integrated or even the same from plant to plant. I even wnet to Next where I met Job.