Sunday, February 19, 2006

Channel-stuffing as an investor's issue

The Motley Fool has an interesting article on channel-stuffing from an investor's viewpoint (they call it "stock doping" as a play on the Olympic issue of "blood doping"). The article focuses on Bristol Myers Squibb and on drug wholesalers, but points out that it crosses all industries:
I needn't pick on merely Bristol-Myers Squibb, which has had a change of management since these past events, or the major wholesalers, which have done nothing wrong as far as I know. Just last month, McAfee finally settled charges relating to (among other things) channel stuffing that dated back to its days as Network Associates. The issue cuts across industries.

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