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

To: Harry Landsiedel who wrote (24545)	4/17/1998 9:35:00 PM
From: robbie	Read Replies (2) \| Respond to of 97611

William, Harry, rudedog and all, Re: <<The company factored, or sold off, about $500 million in receivables during the first quarter, down from about $700 million in the fourth quarter, Mr. Mason said. Such transactions allow a company to convert its bills into cash more quickly, albeit at a discount. The practice, which is more common in the retailing industry, raised eyebrows when Compaq disclosed it for the first time several weeks ago.>> Can someone explain why Compaq has to factor receivables (at a discount) when they have billions in cash? It just doesn't make any sense and makes it appear that they are hiding something and/or manipulating the inventory/channel numbers. Thanks, Robbie