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

To: Night Writer who wrote (18502)	3/1/1998 3:23:00 AM
From: WeisbrichA	Read Replies (1) \| Respond to of 97611

NW No, each distributor knows (or at least thinks it does) how much inventory it should stock for different product lines. You would have to poll each one of them to determine a collective level. Viz... Each distributor stocks what it thinks it should to provide timely deliveries to customers. If any manufacturer pushes(provides positive or negative inducements) for higher levels of stocking for the distributor, he could raise some hackles. It could even be leaked to the financial press. The distributor generally sells in a competitive environment whereby if he doesn't have product, he can lose the sale to another (stocking) distributor who does have it in stock or at least has better delivery date. On the other hand, having too much stock is costly as well for other reasons. Stocking levels to a distributor is a true art and science and is particularly dangerous with high tech products(remember Osborne). IMO the analyst was probably blowing smoke for his own (or company) reason? How can one verify his story? Did he give his sources for the story? Who can you trust for a straight answer? RW