Zeev's Turnips Patch-No Politics (ZEEV)

[langostino]

Inventory, inventory, inventory

CSCO DSOs have jumped by 10%. May be benign, may be intentional, may not signal rising inventories at customers who were encouraged to take extra shipments. Then again ....

Right now, the market is completely paranoid about the potential for rising inventories leading to eroding ASPs and margins. And it's gone completely myopic in caring only about what's closest in unfolding. What can't be known is assumed to be eventually resolved with the worst possible hypothetical scenario.