Red flags fly over one-product tech companies
Article Abstract:
Analysts caution against investing in one-product high-tech firms. With basic computing and networking architectures controlled by a few big firms, such as Intel, Microsoft and Novell, new companies stake their fortunes on enhancing already available technologies. Stocks of software publishers Artisoft, McAffee Associates and Stac Electronics have all tumbled recently, largely because giant Microsoft may roll out competitive products. One analysts says the recent rally of high-tech stocks has led investors to gamble on a new generation of products that they may not completely understand. Multimedia companies, such as Media Vision and Creative Technology, are deemed particularly 'cool,' says one analyst. Investors looking at possible IPOs (initial public offerings) should consider if the company's product is tactical or strategic. Tactical products provide a quick fix to a problem that will eventually be fixed in a better way.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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IBM reigns again as the king of the stocks; 'Beamer' paces rallying market
Article Abstract:
IBM is now regarded as the major indicator of current stock price trends by most stock market analysts. Confidence in IBM has returned after the company's latest earnings report. Only a year ago, IBM seemed in financial trouble after posting a $2.4 billion special charge for the fourth quarter of 1989. From January 16 through February 13, IBM stock was up 23.4 percent, compared with a 15.95 percent gain in the Dow industrials and a 16.72 percent gain in Standard and Poor's 500-stock index.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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