Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: rudedog who wrote (56865)	8/6/1998 11:23:00 PM
From: GRANOLA	Respond to of 176387

for anyone interested in further analysis of compaq vs dell, i would like to get more into the details of this over the weekend, so please check in ... i appreciate all the debate and good info and i am waiting for some calls with more data/info that i should get tomorrow. i don't think there can be too much analysis on this one, since we are talking about an industry and companies that change constantly...and compaq particularly is changing given their new company incorporating dec thanks, GRANOLA

To: rudedog who wrote (56865)	8/7/1998 1:27:00 AM
From: jim kelley	Respond to of 176387

Dog, Lay off the scotch whiskey you are beginning to believe CPQ propaganda. The only way CPQ will get 100 inventory turns per year from that Presario is if they do not manufacture it themselves. In which case they have the unit drop shipped from the manufacturer to the retailer and take possession only for the duration of the shipment say 3 to 4 days. Nice trick to fool the investors in their stock. Analysis of CPQ financials for the most recent quarter shows that CPQ is carrying between 43 -49 days of inventory internally. The 100 turns a year claim is another example of CPQ ledgerdemain and is otherwise totally incompatible with their financials. Large scale batch manufacturing of the kind that CPQ does requires inventory on a grand scale. They can avoid this by having a third party manufacturer build the low cost Presario for them. It appears that their Direct Plus strategy is based on a modification of that used by Gateway. They deploy demonstration units at Radio Shack for potential customers to play with and when a order comes in they ship BTO for the order and ship it.They can use the retailer's store front. I understand that the Radio Shack PC are unique to Radio Shack. This strategy has the advantage that CPQ does not have to pay 600K per store front like Gateway. Gateway only stocks demonstration units at the stores. It takes orders, does it BTO and ships directly to the customer bypassing the retail kiosk. Of course this is suitable only for the Retail Consumer Market which DELL does not address. Submissively yours Jim Kelley