Retailers left out of computer-stock boom
Article Abstract:
Computer retailers' stocks are slipping while manufacturers' stocks are reaching all-time highs. This dichotomy is the subject of much debate among industry insiders. Most experts are baffled by comparisons, claiming that Oct 1996 experienced the worst sales ever in the PC industry from stores open for at least a year. Some analysts feel that companies such as IBM, which has experienced a rise in shares of about 12% in the last week, should remain cautious, since retail sales are a good indicator of PC demand. Other insiders insist that comparisons derived from stores only open at least a year are incomplete. These studies neglect all recently opened stores that sell electronic equipment. Experts also consider the notion that consumer buying patterns are contributing to the statistics. Tom Courtney, an analyst with Montgomery Securities, cites his recent study of seven top computer retailers, in which he found that many consumers are opting to buy their systems through mail-order companies rather than stores.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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Slump in tech stocks: vigorous correction or bad case of nerves?
Article Abstract:
Technology stock prices have been declining, and there is no consensus over whether the slump is a normal correction or a bear market, due to concerns over long term profitability. Intel stock is down 19% from its year-high, Microsoft is down 13%, and Cisco Systems is down 37%. Smaller companies have experienced sharper declines, with the average software stock down 51%, and hardware stocks down 44%. Some analysts see the declines as market corrections, to be expected when price to earnings ratios are at 100. Other see the high prices of technology stocks as justified in an industry with strong fundamentals and 20% annual growth. Some of the decline can be attributed to the buying patterns of momentum players, which tend to exaggerate both surges and slumps. Other analysts characterize the current period as one of product transitions, especially in networking applications and infrastructure.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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