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From: lyang@jennifer.UUCP
Newsgroups: comp.misc
Subject: Re: Dubious marketing practices
Message-ID: <15129@sun.uucp>
Date: Mon, 16-Mar-87 20:48:33 EST
Article-I.D.: sun.15129
Posted: Mon Mar 16 20:48:33 1987
Date-Received: Wed, 18-Mar-87 02:30:51 EST
References: <2607@phri.UUCP>
Sender: news@sun.uucp
Reply-To: lyang@sun.UUCP (Larry Yang)
Distribution: comp.misc, misc.invest
Organization: Sun Microsystems, Mountain View
Lines: 40

In article <2607@phri.UUCP> roy@phri.UUCP (Roy Smith) writes:

>	I find myself reading with semi-horrid fascination about how the
>Wall Street types go ga-ga over every new DEC announcement.  I made up my
>mind long ago that DEC hasn't really announced anything exciting in years.
>I think the last interesting product DEC had was the J-11 chip, yet every
>new machine they announce, no matter how boring from a technical point of
>view, gets gobbled up by the business types.

Remember, Wall Street analysts aren't computer engineers.  It's a well
known fact that if you pay attention to something more, you'll notice
it more.  DEC has had solid earnings reports during a period of decline
for the computer industry in general, and since analysts understand $$$,
they started noticing DEC.  Now DEC is announcing all these nifty
products, and the response on Wall Street is 'ooh! aah! DEC is really
making big gains in the computer industry.  Wow!!  I'll have to invest
more of the mutual fund in DEC stock....'  Thus, the price goes up.

A couple of days ago Sun's stock went up over 2 points.  I was mystified,
til I looked at IBM.  Sure enough, IBM went up 4 points.  Rule of thumb:
if IBM's stock goes up, everyone's goes up. If IBM goes down, everyone's
goes down.  In other words:

#define computer-industry IBM

Of course, things are changing a bit now.  IBM isn't quite the magic
word it used to be.  But analysts haven't changed; they're still as
naive about computer technology as planaria are of space flight.

One final note: At Stanford a bunch of investment banking firms
are recruiting electrical engineers.  So, if any of you
computer jocks want to make a ton of money contributing little
to the maufacturing base of this country, then be an investment
banker.  I hear Kidder Peabody has a few openings...

================================================================================
--Larry Yang [lyang@sun.com,{backbone}!sun!lyang]|   A REAL _|> /\ |
  Sun Microsystems, Inc., Mountain View, CA      | signature |   | | /-\ |-\ /-\
  "Build a system that even a fool can use and   |          <|_/ \_| \_/\| |_\_|
   only a fool will want to use it."             |                _/          _/