Path: utzoo!utgpu!watmath!att!ucbvax!UOTTAWA.BITNET!451061 From: 451061@UOTTAWA.BITNET (Valentin Pepelea) Newsgroups: comp.sys.amiga Subject: Re: Commodore's health Message-ID: <8908082241.AA09754@jade.berkeley.edu> Date: 8 Aug 89 22:29:53 GMT Sender: daemon@ucbvax.BERKELEY.EDU Lines: 34 "9123 SAGARTZ, MATHIAS J."writes in Message-ID: <21219@louie.udel.EDU> > 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. Definitely not. The $19 figure was exegerrated, due very much to the expectancy of CBM introducment of new technology, and the continued growth in sales. The rise in DRAM prices though had an interesting psychological effect. Computer prices were not dropping any more; therefore consummers would not get the periodic imression that suddently they would get a real bargain... an effect one gets every 6 months when prices fall by 15%. Thus, no more compulsive buying from the public. And unfortunately CBM is affected even more so since most of its clients are individuals with small wallets. But you will notice that trends have continued despite the current slowdown. My prediction is watch out for this winter. CBM top management has finally seen the light. R&D money apparently is going up, and the $14 MegaBuck advertizing budget will satisfy us all. I predict CBM's stock to hit twenty in February. Valentin _________________________________________________________________________ The godess of democracy? "The Name: Valentin Pepelea tyrants may destroy a statue, Phonet: (613) 231-7476 but they cannot kill a god." Bitnet: 451061@Uottawa.bitnet Usenet: Use cunyvm.cuny.edu gate - Confucius Planet: 451061@acadvm1.UOttawa.CA