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Technology Stocks : ACTM $100 Million Cable Modem Contract with MOT -- Ignore unavailable to you. Want to Upgrade?


To: jeffbas who wrote (615)3/12/1998 11:15:00 AM
From: Larry Unger  Respond to of 1250
 
turns = cost of sales / inventory



To: jeffbas who wrote (615)3/12/1998 11:30:00 AM
From: Rob Preuss  Read Replies (1) | Respond to of 1250
 
Thanks jeffery (and Larry too)...

Your analysis offers a means by which we might guess
the size of the inventory shortfall. Specifically,
suppose that the true inventory turns at ACT was 10
(comparable to its peers) but that inventory had been
overstated at about $60M such that the apparent turns
at ACT was only 5... then inventory should have been
stated at about $30M and the shortfall is about $3/sh.

Comments?