Path: utzoo!attcan!uunet!cs.utexas.edu!rutgers!usc!pollux.usc.edu!papa From: papa@pollux.usc.edu (Marco Papa) Newsgroups: comp.sys.amiga Subject: Re: More CBM in the News Message-ID: <18203@usc.edu> Date: 1 Jul 89 17:40:36 GMT References: <20035@cup.portal.com> Sender: news@usc.edu Reply-To: papa@pollux.usc.edu (Marco Papa) Organization: Felsina Software, Los Angeles, CA Lines: 39 In article <20035@cup.portal.com> thad@cup.portal.com (Thad P Floryan) writes: >San Jose (CA) Mercury News, Thursday, 29-June-1989, BUSINESS section page 3: > >" COMMODORE STOCK FALLS: Commodore International Ltd.'s stock price > plummeted 21 percent Wednesday at news that the computer company > might report its first quarterly loss in three years. The Wall Street Journal made clear that Commodore problems are not just CBM's but of all US companies that have most of their earnings from foreing countries and of technology stocks in particular. The strong dollar penalizes companies like CBM, whose 70% earnings come from Europe. The WSJ said the following in the Friday issue, after the biggest nose dive of the DJIA since the October 1987 crash: "Wednesday, a negative earning forecast by Commodore International caused a major reassessment about the technology sector. Now money managers are afraid that other industrial groups will follow technology into a slump, so they have been readjusting portfolios in preparation for a rough ride in stocks. [...] Technology stocks were among the weakest performers as investors responded to Amdahl's projection that second quarter earnings would be down 25% to 30% .. Amdahl plummeted 3 1/2 to 16 5/8 ... International Business Machines retreated 2 3/8 to 11 1/2, DEC dropped 2 to 92 3/8, Compaq Computer skidded 3 to 89 7/8, Hewlett-Packard fell 1 1/2 to 51 5/8, Cray Reaserch lost 1 3/4 to 49 1/8, and Tandem Computers fell 3/4 to 16 7/8." Note also that both Sun Microsystems and Apple Computers have had their stock plummet in the past weeks for lowest than expected earnings [ Apple finished at 40 5/8, down 1 1/8; Sun closed at 16 5/8, down 3/8 after a BIG dive during the previous weeks]. You don't need a money manager to believe that this is certainly the time to stay away from "technology" stocks. -- Marco Papa 'Doc' -=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= uucp:...!pollux!papa BIX:papa ARPAnet:pollux!papa@oberon.usc.edu "There's Alpha, Beta, Gamma, Diga and Caligari!" -- Rick Unland -=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=