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Technology Stocks : Aspect Telecommunications (ASPT) -- Ignore unavailable to you. Want to Upgrade?

To: Trader Dave who wrote (437)	10/19/1998 2:15:00 PM
From: corporal spewchunks	Read Replies (1) \| Respond to of 2018

Well I'm rethinking my original opposition to the convertible deal in light of what has happened since. Credit has apparently dried up in the economy generally. It looks like what the company did was to effectively sell stock in the 30s and is now buying it back around 12 or 13. Gotta like that!

To: Trader Dave who wrote (437)	10/19/1998 3:15:00 PM
From: Amsterdam	Read Replies (1) \| Respond to of 2018

The channel discounting only worried me a little initially (in the future it will worry me more) as this is a typical game that vendors like Aspt play. The problem is that once a vendor starts offering discounts to their channel the channel start's modeling their business and purchase patterns around it. Over time it tends to get addicting as the company uses the channel more and more to level off quarterly earnings, and the channel extracting bigger and bigger discounts for taking progressively higher inventory. Eventually the process has to be rationalized and it seems like that time has come from Aspt. If using the channel to make quarterly numbers still get's the stock hammered by 50% then they'd be better off with less volume through the channel but at normal margins rather than quarterly discounting.