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

To: jim kelley who wrote (85661)	12/16/1998 12:50:00 PM
From: Chuzzlewit	Respond to of 176388

Jim, I haven't studied Compaq in anywhere near the detail you have. But from what I've seen, it looks as if there is a rocky road ahead of them unless they can pull off the transition to direct sales quickly and smoothly. I think that it will take them a couple of years to regain their footing, and they may end up having to contract a bit during the interim. As you noted, they have taken considerable restructuring charges, but there is insufficient cash flow to fund them. You also pointed out that a significant portion of their current assets are in the form of income tax refunds. But those are generally credits against taxes on earnings. But there are no earnings! I might be wrong on this, because my tax expertise questionable to say the least, but I don't see this as a significant source of cash for the foreseeable future. TTFN, CTC