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

To: Richard Karpel who wrote (1956)	1/27/1998 2:48:00 AM
From: Chuzzlewit	Respond to of 7342

Richard, DSO is one of those really strange ratios which sheds absolutely no light on a company's operations (but generates a lot of heat!), but is assiduously reported by hordes of analysts. The ratio was originally designed to test the quality of the receivables, but it soon became apparant that it was too sensitve to the pattern of the sales to be of any real use except if clear trends begin to emerge. It is now widely interpreted as a symptom of "stuffing the channel" (i.e., forcing distributors to take product but not requiring them to pay for it until it sells through) or back-end loading, in which a company sells a lot of product at significant discounts in order to "make it's number". I see no evidence of any of these things happening. Regards, Paul