Path: utzoo!utgpu!watmath!iuvax!rutgers!gatech!udel!mmdf
From: mjsagar@sandia.gov (9123 SAGARTZ, MATHIAS J.)
Newsgroups: comp.sys.amiga
Subject: Commodore's health
Message-ID: <21219@louie.udel.EDU>
Date: 8 Aug 89 01:37:21 GMT
Lines: 15

Lately the stock market has been treating the companies heavy into
PC's very badly.  Apple and Compaq have been pounded really hard, but
nothing like Commodore.  Irving Gould has admitted that there will be
a loss in the April-June quarter.  He claims that it's mostly the fault
of the strong dollar making European sales results look bad.  The 
party line is pretty much unchanged, PC clones doing well and the
Amiga making progress in the business sector.

Wall Street's reply has taken the stock price from over 19 to 10.25.
Now the market values Commodore at about 1/3 annual sales and about
6 times annual earnings.  These numbers are not those of a 
company that the financial markets have any faith in.  The real question
is, are things really that bad?  Markets are notorious for over
reacting but sometimes they know somethings the general public
doesn't.