Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (31384)	2/27/1998 5:35:00 PM
From: Eric S.	Read Replies (2) \| Respond to of 176387

Paul, What is your take on how high this multiple can go short term and where do you see the stock price being the morning the split occurs? Just curious... Thanks Eric

To: Chuzzlewit who wrote (31384)	2/27/1998 7:50:00 PM
From: stephen wall	Read Replies (1) \| Respond to of 176387

Paul, <<Now, consider the possibilities of managing the inventory problem that many of us suspect that Compaq is having. I'm not suggesting that Compaq is doing this, but hypothetically you could push inventory on to the channel and book it as a sale. Then the A/R's go up rapidly and you would see a spike in DSO, unless of course you use another gimmick to hide the A/R's. I suppose you could be really inventive and have some kind of conversion feature that allows you to convert A/R over 60 days to a non-interest bearing non-recourse loan.>> One thing I dont get about CPQ. Now that they are moving into a hybrid form of selling - thru the channel and purportedly direct thru contracted assemblers - will they be required to differentiate revenue recognition for each respective entity? If no, wouldnt this imply really different and maybe misleading ratios for inventory turns,DSO,etc? Or am I way off base and nitpicking? stephen