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

To: BILL CHOW who wrote (99680)	2/15/1999 4:24:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Bill, the issue is sales into an intermediate channel. Compaq, IBM and others sell to channels which in turn sell to stores and corporate customers. The issue is one of sell through. If you push inventory into the channel it is counted as a sale. Unfortunately, goods that are not sold through resellers will come back to the manufacturer in subsequent periods. But companies like Dell and GTW do not sell through intermediaries, which makes their data easier to interpret. The second issue is that companies like Gateway sell mainly to retail customers and therefore get a very big bounce in the fourth quarter. On the other hand, companies like Dell sell mainly to corporations and so get very little fourth quarter seasonality. TTFN, CTC