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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: j lawrence who wrote (12354)	8/4/1998 2:41:00 PM
From: BelowTheCrowd	Respond to of 18691

JL, The secret to profitability in PCs is NOT margins. It is inventory turns. Take a simple example. You're in a business where you KNOW that you can never get back more than 1% above your costs to deliver. How can you make 30% on your money? Easy. Make and deliver every 2 weeks, reinvesting the money each time. That 1% compounded every two weeks adds up FAST. GTW is looking for more volume and faster inventory turns. They're looking for innovative ways to do it. The "trade in your computer" is just a nifty variation on leasing, without the negative marketing connotation of a "lease" vs. an "owned" PC. mg