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

To: The Phoenix who wrote (1865)	9/6/1998 12:09:00 PM
From: Geoff Nunn	Read Replies (3) \| Respond to of 2578

Gary, Rudedog has already stated that Intel provides CPQ with price protection. Therefore, I'm not sure what your point is. As far as CPQ's inventory flows being predictable and stable, that's hardly a given. If their inventory is so predictable and stable, why don't they economize and carry less of it? A large inventory is necessary only if your need for it fluctuates unpredictably. I think we can assume from its historic behavior that CPQ needs a large inventory. CPQ's "bloated" inventories, which have run as high as an estimated 12-13 weeks over the past year, has been the subject of considerable discussion on the Dell thread... although I think this was before you came. Geoff