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From: chuq@sun.uucp (Chuq Von Rospach)
Newsgroups: net.micro.cbm,net.micro.amiga,net.micro.atari,net.micro
Subject: Re: The Demise of Commodore!??
Message-ID: <3210@sun.uucp>
Date: Sat, 1-Feb-86 14:18:20 EST
Article-I.D.: sun.3210
Posted: Sat Feb  1 14:18:20 1986
Date-Received: Mon, 3-Feb-86 04:38:17 EST
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Xref: watmath net.micro.cbm:1979 net.micro.amiga:1812 net.micro.atari:2680 net.micro:13673

>      About three weeks ago a friend of mine at Epyx here in Sunnyvale
> informed me of the possibility of Commodore filing for bankruptcy.
> 
>      However, this morning (1-31-86) the stock market reporter on an 
> ABC radio affiliate in San Francisco, KGO, announced that Commodore's 
> creditors have told the company that today is the day that they have 
> to pay up. This is after one previous extension of a payment deadline.

The San Jose Mercury News reported this morning that creditors have given
Commodore another extension while they negotiate on re-arranging the loans
that are in default. If it doesn't work out, Commodore will probably have to
file chapter 11 for protection.

>      Will Commodore survive?

Hard to say. Even if this latest extension fails, Commodore can operate
under Chapter 11 until it gets itself going again. Being bought by a company
looking for entrance into the personal computer market is another option. I
think the chance of it just disappearing into the sunset some afternoon is
quite small.

>      One final note, during the past few weeks Commodore stock has 
> fallen nearly 40% and is now selling(!?!) for less than $7 a share.

It might well be a good buy if you're looking for a speculative stock. If
they can pull off a turnaround, the stock will take off. If they file
chapter 11, it'll probably drop to around $1 or so. I wouldn't write them
off at all, and if everyone else is selling, contrarian philosophy says to
buy. It'd be a high risk (don't bet your retirement on it) but could also
pay off quite well. Look at chrysler stock.
-- 
:From catacombs of Castle Tarot:        Chuq Von Rospach 
sun!chuq@decwrl.DEC.COM                 {hplabs,ihnp4,nsc,pyramid}!sun!chuq
FidoNet: 125/84

My uncle told me all of this. It must be true, because I know my uncle, and he
is as honest as me.