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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: rudedog who wrote (40704)	5/6/1998 10:46:00 PM
From: jim kelley	Respond to of 176387

Dog, Sorry to disappoint you. I was hoping that analysis their financial statements would help lay this to issue to rest. Alas, all that can be said is that the problem is well hidden. There is plenty of anecdotal data around in the form of news releases from the channel indicating bloat and concerns over how to make a profit in the ODM environment. However, as I noted the CPQ financial statements do not indicate at all what the true levels of inventory are in their supply pipe. That information would have to be backed out of the financial reports of Ingram Micro, etc. I am not going to invest in a company whose financial statements are as opaque as CPQ's. But you have partially supported my guess that CPQ does not take back the inventory but rather pays the channel under the old insurance plan. With the protection removed only a few highly efficient dealers are going to make money off CPQ products. This explains the lack of profitability in the face of increasing revenues. I'm sticking with my opinion that their earning and revenue growth rate s are overstated for last year and that CPQ is in trouble. Recent news releases have pointed to the loss of market share by CPQ to HWP and DELL. It looks like about 4-5% . With CPQ server margins under stress, it looks like they will not be as profitable as they were in the past even after the inventory constipation passes. Dogs are never rude.