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Technology Stocks : Compaq
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To: Chuzzlewit who wrote (56431)4/9/1999 9:29:00 PM
From: jim kelley  Read Replies (1) of 97611
 
CTC,

They could have set up a system to review channel inventory daily or weekly to determine if there was too much inventory. Instead they do big batch builds and then look for some channel to store the inventory until it is sold. It is truly stupid in these days of highly evolved logistics and manufacturing techniques. Unfortunately, there is an immediate reward for this behavior a bookable non-sell-through order.

So I can not find any reason to defend this as anything other than "channel stuffing".

Regards,

Jim Kelley
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