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. */