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To: robbie who wrote (24547)4/17/1998 10:31:00 PM
From: Charles Skeen  Read Replies (3) | Respond to of 97611
 
Re: Factoring of Receivables

Robbie, On this topic it agree with you <<It just doesn't make any sense>>.

I looked for an explanation on this board 3 months ago when the topic first came to light. There were no explanations given that made any sense, except for the possibility that the receivables were in foreign currencies that were declining vs the $. Even then, there are more conventional ways of hedging. Why sell receivables when you have all that cash in the bank?

Charlie.



To: robbie who wrote (24547)4/20/1998 6:19:00 PM
From: Harry Landsiedel  Respond to of 97611
 
robbie. Re: factoring Acct's Receivable. I'm not sure why CpQ is factoring. But in the comments from Mason in the past, the comment about factoring has always been followed by a discussion of return on invested capital reaching an all-time high etc.

Could it be they are factoring to make an internal ROI number, on which their bonuses are calculated?

HL