Compaq to buy back up to 12% of stock in bid to reassure holders after plunge
Article Abstract:
Compaq Computer Corp will rebuy 10 million shares of its common stock in an effort to calm the investor panic that caused the price of Compaq stock to plunge 27 percent on May 15, 1991. Compaq plans to buy back 12 percent of its 86 million shares outstanding. Compaq's stock plunged after the computer maker announced its 2nd qtr earnings for 1991 would be less than 25 cents a share, which is down from $1.18 a share for the same period a year earlier. The computer maker indicates that its financial crisis is only temporary and that it is well-positioned in a growth industry. Investors did not react favorably to Compaq's announcement to buy back stock and forced the stock price down 25 cents a share to close at $35.75 a share on May 16, 1991.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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Shoppers shun new home PCs despite ad blitz
Article Abstract:
The computer industry's personal computer marketing efforts for the 1990 Christmas holiday season does not produce the results expected. IBM and Tandy Corp offer heavily discounted microcomputers that are aimed at the consumer market, but analysts indicate that people are not willing to spend $1,000 for a machine that can electronically 'store recipes.' Analysts agree that Apple Computer Inc's efforts to sell its new Macintosh line of microcomputers has met with success. Industry observers note the difference between Apple's success and IBM's and Tandy's lack of success is due to the reason most buyers want computers at home: to work at home. Most work-at-home users are not willing to sacrifice power and capabilities for price.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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Mail-order computers can be bargains, but some firms don't deliver on claims
Article Abstract:
The world of mail-order computers is a marketplace that holds both risks and opportunities. Companies resort to brash or unusual advertising, and marketing gimmicks abound, but at the same time, there are bargains and innovative service techniques. Most companies are legitimate: Zeos International, for an example, offers good service and telephone support; and Dell Computer Corp has a good reputation among corporate customers. Nevertheless, the mail-order market can be treacherous: fly-by-night operators can appear and disappear, leaving customers without any recourse.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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