Dell Computer shares drop by 9.8% on analyst's currency-trading report

Article Abstract:

A searing report by Kidder Peabody and Co analyst David R. Korus on Dell Computer Corp's currency-trading activities causes the computer company's stock to plunge $3.75 to $34.625 per share in extremely heavy trading on Nov 20, 1992. The report questions Dell's accounting for its foreign-currency trading and suggests that currency speculation may have been used to bolster Dell's profit margin. Dell officials heatedly deny Korus' implications, which came a day after a company announcement of sharply better revenue and earnings for 3rd qtr fueled a jump in the price of Dell stock by more than $2 per share. Korus also downgrades his investment rating of Dell from 'neutral' to 'underperform.' Korus' report, which aims to raise questions, not make allegations, comes after an exhaustive two-month investigation. The Securities and Exchange Commission, which is examining Dell's books in connection with a planned offering of 4 million shares of common stock, would not comment on whether it is expanding its investigation.

Security brokers and dealers, Officials and employees, Reports, Foreign exchange, Securities industry, Securities, Stock, Industry Analysts, Kidder, Peabody and Company Inc., Reduction, Korus, David R.

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Dell Computer posts loss for quarter, backs away from forecast of rebound

Article Abstract:

Dell Computer Corp has posted a net loss of $75.7 million for the 2nd qtr 1993. The loss, most of which was attributed largely to inventory sell-off charges and the cost of discontinuing a notebook computer line, was larger than the company expected, and casts doubts on projections that Dell's revenue would rebound by the end of 1993. Dell reported an operating loss, without the charges, of 61 cents per share for the quarter ending Aug 1, 1993. This quarterly loss is Dell's first since the company went public in 1988. During the same period, revenue rose to $700.6 million from the 1992 figure of $457.5 million - a 53 percent increase. Dell has suffered in the past year from mistakes in its notebook computer manufacturing and has not yet built a machine based on Intel's 80486 microprocessor. Chmn Michael S. Dell now says forecasts of revenue turnaround by year's end may be overly optimistic.

Finance, Revenue, Financial Report, Losses, Second Quarter

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Dell Computer says SEC has begun inquiry into trading in firm's stock

Article Abstract:

Dell Computer Corp says the Securities and Exchange Commission has begun investigating stock trades in the wake of Dell's Nov 19, 1992, rosy announcement of 3rd qtr earnings. Dell's stock rose more than $2 that day after the company announced strong sales and earnings increases in the midst of an industry-wide price war. The next day, though, Dell stuck tumbled $3.75 to $34.625 after Kidder, Peabody and Co released a detailed critique of the way the company accounted for its currency-trading earnings. Kidder analyst David R. Korus says the trading may have inflated Dell's profits for the quarter. Dell approached the SEC after executives noticed unusually high trading volumes for the stock, especially in 'short' stock trading, in which traders expect the price of a stock to fall.

Regulation misc. commercial sectors, Investigations, United States. Securities and Exchange Commission, Stock markets, Stock Market, Investigation

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