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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: robbie who wrote (50339)	2/27/1999 3:23:00 PM
From: jim kelley	Read Replies (3) \| Respond to of 97611

Robbie, You have chosen to ignore the impact of channel stuffing on CPQ's earnings. You do so at your own risk. It now looks like CPQ stuffed the channels with 26% more inventory than was sold out of the channel in Q4. If the earnings were restated to show sales to the end users CPQ's earning would have been 13 cents. Worse this channel stuffing is impacting CPQ's cashflow negatively by 1.8 b in the quarter. Lokks like CPQ is headed for the low twenties as this information leaks out and is understood. JK