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

To: DellFan who wrote (85899)	12/17/1998 5:18:00 PM
From: DellFan	Read Replies (1) \| Respond to of 176387

CPQ channel inventories have not fallen 12/16/98 zdinfobeads.com "Compaq appears to have found a consistency in the 30-40 day range that I find puzzling. Although they are the market leader, this firm was hurt the worst in the Q1 inventory glut. One would expect that they might be driving lower channel inventory, but that has not been the case. It would have seemed with their recent "direct" announcement that there would be another reason to lower channel inventory as well. Yet, they have not, and it could well be that their dominant share is allowing them to eat up more of the reseller's line of credit. Needless to say, inventory is still a key issue with regard to vendor profitability. We'll be watching this data closely and will be tracking November and December with a watchful eye to see if Q1 will bring another round of price cuts due to an inventory glut. Or will the inventory stay in line keeping vendor profits at a reasonable level?"