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To: jim kelley who wrote (39169)	4/27/1998 2:26:00 PM
From: Eddie Kim	Read Replies (3) \| Respond to of 176387

>>This leads to the inescapable conclusion that CPQ is stuffing the channel again. This is why they will not be reporting any profits to speak of for the first half year of business I don't really want to waste my time on you anymore, because it's painfully obvious that you don't have a clue about CPQ. But let me ask you this SIMPLE question concerning what you wrote above: IF Compaq is stuffing the channel again, and thus getting money for it...how is it that they will report no profits this quarter?

To: jim kelley who wrote (39169)	4/27/1998 2:34:00 PM
From: rudedog	Read Replies (2) \| Respond to of 176387

Jim - I would not base a strong opinion on some hack publication. CPQ said at the shareholders meeting that inventory in the channel had been reduced by more than $300M and that the balance would be down to 2 weeks for desktops and 4 weeks for servers (their target inventory amount) by mid-june. Unless you claim that they are lying about these numbers the assertion that there has been additional buildup in the channel just does not hold water.

To: jim kelley who wrote (39169)	4/27/1998 5:24:00 PM
From: SecularBull	Read Replies (1) \| Respond to of 176387

Jim, Eddie's assertion is that CPQ isn't re-stuffing the channel. Is it correct to say that you believe that they are? If so, why do you think that? Are you saying that they're building more and more computers that are going unsold, even as they try to reduce inventory? I'm slightly confused. I can't imagine that CPQ would be overstuffing their already bloated channel at a rate that exceeds unit sales. If you believe this to be the case, what is your basis for drawing that conclusion? I know you've already covered this, but from your posts I was unable to draw any conclusion. I believe that CPQ is obviously producing computers, but at a rate that does not exceed current unit sales. This allows them to reduce the channel inventory, while keeping up-to-date PCs available to end-users. Perhaps they're unable to move the low-end PCs, and the high-end PCs are stuffing the overall picture? Please clarify. Thanks. LoD