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Technology Stocks : American Power Conversion -- Ignore unavailable to you. Want to Upgrade?

To: Larry Abrams who wrote (2038)	8/4/1998 8:37:00 AM
From: TobaccoMan	Respond to of 2574

Mr. Abrams, Back in 94/95 APCC ruined itself on the Street by fooling around with its inventory, thus halting a stellar run beginning in the early 90's. I believe that they learned their lesson and thus the more conservative outlooks over the past two years. Current inventory increases are attributed to the Silcon A/S purchase as well as the normal inventory build in Q1/2 as APC's Q3/4 have historically seen increased sales and inventory reduction. Regards, Tobaccoman

To: Larry Abrams who wrote (2038)	8/6/1998 6:20:00 PM
From: Turs	Respond to of 2574

Larry- You can't look at sequential inventory increases. This is a seasonal business and EVERY YEAR APCC builds inventory in front of the summer season because that is when bad weather causes spot purchases. Then inventories decrease dramatically as a % of sales in the September and December quarters. If you want to gauge the health of inventories, look at the sales to inventory ratio number on a yr/yr basis (Q298 vs. Q297). I think you'll find it looks much healthier than you believe. As far as HP, different companies, different numbers. Don't compare apples and oranges.