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Technology Stocks : DELL Bear Thread -- Ignore unavailable to you. Want to Upgrade?

To: Geoff Nunn who wrote (1859)	9/5/1998 5:21:00 PM
From: jim kelley	Read Replies (1) \| Respond to of 2578

Dog and Geoff, Re:Good question. I would like to hear Jim speak to this, but let me suggest an answer. If CPQ lowers its inventory only because prices are about to drop, this would create disruption for both CPQ and Intel. The fallacy in Dog's critique is that CPQ can not reliably predict its future sales. Thus while they would like to be sitting on no inventory when prices drop they have been unable to do this effectively. In fact, they have been sitting on huge amounts of inventory during price drops. This has caused them to have to have firesales of their otherwise dead inventory. This has eliminated their profits. Dog is guilty of wishful thinking. Jim Kelley