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

To: jim kelley who wrote (103680)	2/22/1999 11:51:00 AM
From: Knighty Tin	Respond to of 176387

Jim, I gilded the lily a bit. Compaq, in their eps announcement, claimed 3.9 weeks of inventory in the channel vs. their 2 weeks target. The stuffing of 2 weeks is my interpretation of that result. They now have over 4 weeks in the channel, but some of that is not a stuff that will sit around forever. The channel is still selling lots of boxes. Dell pumped receivables big time in the October quarter to hold the facts of the revenue growth shortfall off until the January report. Why is open to interpretation and I won't comment on it. To whom do they pump receivables? Those who have contracts to buy so many boxes over some time in the future, such as Boeing, which took huge early deliveries. This quarter, the pump was about the same on a $ basis and more on a unit basis, but no % jump from 3q. However, it was still larger than the gain in revenues, year over year, so there was a small dump making these bad numbers appear better than they were. Nothing like the massive dump of 3Q, which bloated last year's and 4th calendar quarter's total revenues # for Dell and the industry. I don't have the #s handy for CPQ nor time to dig them out. So, this is from memory. CPQ showed much greater growth in the service area than in the hardware area. Of course, they would, year to year, with the addition of DEC, but the sequential #s from 3q also look spectacular. Or, as I would prefer to phrase it, unbelievable. <g> Dec never got that sort of growth, or, at least not in the last 5 years. But, CPQ, which has a rep of being lousy on service, boost the growth tremendously in 6 months. It could happen. Right after my date with Claudia Shiffer. <g> MB