Path: utzoo!utgpu!watmath!att!tut.cis.ohio-state.edu!bloom-beacon!primerd!ENI!S41!CIS
From: CIS@S41.Prime.COM
Newsgroups: comp.sys.amiga
Subject: Re: Commodore's health
Message-ID: <419500003@S41.Prime.COM>
Date: 15 Aug 89 13:11:00 GMT
References: <21219@louie.udel.EDU>
Lines: 28
Nf-ID: #R:louie.udel.EDU:-2121900:S41:419500003:000:1673
Nf-From: S41.Prime.COM!CIS    Aug 15 13:11:00 1989


As with all 'high-tech' stocks, the brokers and traders really have no idea
how a computer company should be run in order to maintain long-term maximum
health.   Because of the recent spate of mergers, acquisitions and leveraged
buy-outs, even in the computer industry (:-(  [see .sig below for reason for
large frown], managers and brokers are ever more concerned with the quarterly
or yearly results, and not with the long-term prospects.  Another reason for
irrationality of stock prices in the computing industry is because of the
perception on Wall Street that the industry is now 'mature'.  This means that
they expect the Suns and Apples, and yes, the Commodores too, to behave like
US Steel/Ford/Standard Oil of Ohio- that is, have steady growth rates, pay
out dividends, have a firmly entrenched board of directors and set of
managers, etc.  Everyone who is in the business, though, knows that they are
totally wrong in their assumptions about the industry.  Computing is driven
by changes in technology.  It's more than just a better and more efficient
process for making the boxes that adds value to the industry.  It's the
boxes/chips that add value to the industry by making its customers more
productive.

-------------------------------------------------------------------------------
Chuck Stern                    "Keep your feet on the ground, keep reaching for
Prime Computer, Inc.            the sky, pray for rain, keep the humor dry and
500 Old Connecticut Path        keep eating those Powdermilk Biscuits"
Framingham, MA 01701
cis@s41.Prime.COM

/*  I do not claim to even KNOW who speaks for Prime, much less claiming that
     I do so myself. */