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

To: Satyr who wrote (17301)	2/12/1998 11:59:00 AM
From: Roads End	Read Replies (1) \| Respond to of 97611

Satyr..I have thought about whether the sales of A/R is a trick and I can't see how. For a one time shot you would be able to do some shifting between reporting periods but over a number of quarters like Mason says they have been doing the differences would even out. A good business reason to sell receivable is to generate cash. CPQ is not hurting for cash. I have to believe they are able to take advantage of the margin between the opportunity cost of waiting for collection and the cost of the discount in selling the A/R.