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Technology Stocks : HWP -- Hewlett Packard -- Ignore unavailable to you. Want to Upgrade?

To: cirrus who wrote (2266)	5/15/1998 4:13:00 PM
From: Dwight E. Karlsen	Respond to of 4722

Have a good weekend Tom. <eom>

To: cirrus who wrote (2266)	5/15/1998 4:22:00 PM
From: Xpiderman	Read Replies (1) \| Respond to of 4722

The HWP's conf. call (1-800-633-8284, code: 4073076) was a very disappointing one. The management had hard-time answering questions from the analysts. One analyst pointed out HWP has a much higher cost of goods (PCs) compare to major competitors. HWP carried a channel inventories of 4 - 5 weeks, compare to CPQ's 5 - 6 weeks and Dell's about one week. HWP will have another securities analyst meeting next week.

To: cirrus who wrote (2266)	5/18/1998 1:42:00 AM
From: BelowTheCrowd	Respond to of 4722

> get someone who can figure out the gross profit when a PC is shipped... Since PCs are price-protected all the way through the distribution channel, that is impossible. Any price cut which is made up to the point where an end-user buys the thing is swallowed by HP. That's why inventory in the retail channel absolutely kills, you've got to rebate the costs to the channel. And of course, that doesn't account for returns either, for which you've also got to re-imburse the channel, then spend money on refurbishing the returned unit, just so you can sell it at a discount to an employee, or through OnSale, or some such. Not to mention the fact that the "cost" of each PC also includes the somewhat unpredictable cost of support and service for the warranty period, including call-centers, on-site service, etc. One problematic product can unexpectedly screw your number for an entire product line for a year. mg