Dell directors give vote of confidence to battered stock
Article Abstract:
Three directors of Dell Computer Corp are showing their faith in the company by buying its stock. An aggressive microcomputer price war and management turmoil has driven Dell stock down from nearly $50 in Jan 1993 to $17.75 on Jul 27. But influential director Bobby Inman, who says the stock is worth at least $30 per share, purchased 25,000 shares for an average price of $19.87 per share in late June. Inman acknowledges that the nation's fourth biggest microcomputer manufacturer is having a tough year, largely because management expectations of continued 'hypergrowth' have been dashed. Directors Michael H. Jordan and Paul O. Hirschbiel have bought lesser amounts of Dell stock, while Chief Technology Officer G. Glenn Henry sold 2,000 shares in late June. Despite Inman's optimism, most microcomputer industry analysts expect sales to slow by year's end.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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Dell stock loses a quarter of its value on drop in fiscal first-quarter profit
Article Abstract:
Dell Computer Corp's stock lost 25 percent of its value when it reported its earnings for its fiscal 1st qtr ending May 2, 1993. The computer maker's earnings of $10.2 million, or 25 cents a share, where far below expectations and were 49 percent lower than year earlier earnings of $19.8 million, or 52 cents a share. The stock closed at $24.75 a share after falling $7.375 a share following the disappointing earnings report. Dell says that the lower-than-expected earnings were primarily due to the poor performance from the company's notebook computer operations. Dell has appointed a new head for that department, John K Medica, who has convinced management to cancel a new planned line of notebook computers. Medica, 34, used to work at Apple Computer Inc where he was on a team that designed the popular Apple PowerBook notebook computer.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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