Insiders buy IBM stock for first time in 2 years
Article Abstract:
Five IBM insiders are indicating their confidence in the slightly faltering company by investing in its stock. IBM board member Stephen Bechtel Jr increased his holdings by 10 percent when he purchased 5,000 shares for $459,375 on May 20 1992. Four IBM vice presidents and senior vice presidents also purchased a total of 1,525 shares by exercising stock options. IBM has suffered in recent years from its inability to respond to the recession, increased competition and a changing marketplace. The company experienced its first annual loss in 1991 is taking a $3 million restructuring charge and has pledged to eliminate some 20,000 jobs. Additionally, IBM's credit rating was reduced from triple-A to double-A-2 by Moody's Investors Service Inc in Mar 1992. IBM stock fell from about $175 in 1987 to $81.625 in Apr 1992, but since the insider purchases, the stock has rebounded somewhat to $95.875.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Computer issues may have further to fall
Article Abstract:
Prices of computer company stock continue to fall significantly. HP announced that its stock fell 12 5/8 points to 58 7/8 during the Jul 1992 quarter, with total losses of $3 billion. During the same period, DEC's stock fell 43 percent, Apple's fell 38 percent, Sun Microsystems Inc's fell 30 percent, Compaq's fell 18 percent and IBM's fell 13 percent. Despite the significant decreases in value, industry analysts say that the stocks are not yet down to buying levels. Computer companies have suffered as a result of price wars, which started in the microcomputer market segment and spread into the mainframe market. Some investors believe that the atmosphere of pessimism is excessive and are buying up computer stock while the prices are low.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
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