Internet dreams: from 10 cents to $30
Article Abstract:
Cybercash enjoys an initial public offering (IPO) that sees shares valued at $17 each rise to over $30 a piece, in another example of a strong IPO from a high-technology company that has yet to make a profit. In the past, a company would have had to rely on money from the founders and from venture capitalists and would have had to show some promise before going public. In contrast, Cybercash's founders initially bought shares for 10 cents each. Later, investors paid $2 to $5 a share. The IPO comes only 18 months after Cybercash was founded, and it involves the sale of two million shares. The IPO makes the founders' original investment of $130,000 worth $39 million, and the whole company is valued at $300 million. Cybercash plans to offer software that permits electronic commerce on the Internet without placing credit card numbers at risk. Investors are encouraged by Intel's investment in Cybercash.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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Microsoft, a pioneer in quality accounting
Article Abstract:
Microsoft announced that it has overstated its profits for the Sep 1997 qtr and 1997. The company now reports a $60 million loss, or 5 cents a share, for the Sep 1997 qtr. An earlier income statement showed a profit of $663 million, or 50 cents a share. Profits for 1997 now have fallen by 23%, from $2.65 a share to $2.05 a share. Microsoft attributes the changes to accounting for stock options that it extends to nearly all employees. Microsoft also has gone beyond the minimum terms of its compromise with the Financial Accounting Standards Board, which requires disclosing a cost estimate of stock options in the footnotes to annual reports. The Microsoft announcement also contrasts with artificial phase-ins for most companies. CFO Greg Maffei says Microsoft remains committed to attract employees with stock options but aims to inform investors of that cost.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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Who says Microsoft stock is too high?
Article Abstract:
Microsoft's stock jumped to $126 a share during 2nd qtr 1997 from $90, and reached $150 a share in the week beginning Jul 14, 1997. Investors bought Microsoft's stock enthusiastically and Wall Street recommended the stock, even though Microsoft did not buy back the stock. Microsoft usually buys back its stock in every quarter to avoid dilution caused by the company's stock option program. Microsoft's treasurer explained that he had doubts about the method of stock valuation used by analysts. Analysts like Intel's stock even though the company's profits posted in Jul 1997 are well below Wall Street projections. However, Cowen & Company projects a slower growth for the company, but plans to keep a neutral rating because of analysts' enthusiasm about the company.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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