GUMM - Eliminate the Common Cold Message Board

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Biotech / Medical : GUMM - Eliminate the Common Cold

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To: DanZ who wrote (4205)	1/7/2003 12:39:57 PM
From: StockDung	of 5582

Investopedia:Channel Stuffing What does it mean? A deceptive business practice used by companies to artificially inflate sales and earnings figures. By "stuffing the distribution channel" with products, a company can inflate accounts receivable. However, this stuffing always catches up with the company, because it cannot maintain sales at the rate it is stuffing. In other words, stuffing the channel may work for a couple quarters, but these high sales from past quarters are made at the expense of poor sales in another quarter. It is usually done to fraudulently raise the value of the stock; channel stuffing is highly illegal. investopedia.com

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