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

To: corporal spewchunks who wrote (444)	10/19/1998 4:38:00 PM
From: Amsterdam	Read Replies (1) \| Respond to of 2018

This seems like more than just coordinated short sellers. Unfortunately I think Aspt is going to be a long slow climb back. Just a month ago I had thoughts about it climbing back into the 30's and staying there. That's looking like a pipe dream now. The discounting to the channel isn't motivated by pricing pressures. It begins when a company asks the channel to buy inventory that they don't yet have orders for. The channel agrees to do it for the price of a discount and it helps the company meet it's quarterly number. If there aren't pricing pressure, as you say, then the discount just serves to substantially improve the channel's margins and they say "hey that was great let's do all our ordering at the end of the quarter." Once it starts, it's very hard to control.