To buy, or not to buy Amdahl's stock now is the question as it readies new mainframe
Article Abstract:
Stock investors are speculating whether it is a good time to buy Amdahl Corp stocks since the company will be shipping its 5995 M mainframe computer in Dec 1991. Amdahl's financial health is questionable: its 3rd qtr 1991 earnings fell by 88 percent and the company is expected to earn only about 30 cents a share in 1991. However, if the 5995 M's sales are positive, earnings could go up to $1.50 a share in 1992 and $2.50 a share in 1993. Amdahl's bottom line is tied up with its product cycle. The 5995 M mainframe comes at a time when the mainframe market is at a slump. Analysts, however, say that the Amdahl product is capable of delivering more brainpower for the dollar than competing brands. A typical, four-unit model weighs 17,900 pounds, can perform 204 million instructions per second and sell for a list price of $19.4 million.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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Skittish 'junk' market quickly sniffs out trouble for two Memorex Telex bond issues
Article Abstract:
Investors should, in most cases, stay clear of junk debt that is issued by high-tech companies because such companies are especially vulnerable to negative turns. Memorex Telex Corp, a Dutch-based computer firm, raised $557 million through high-yield bonds, but five months later in 1989, bondholders lost approximately half their investment on paper. In the market, Memorex was viewed as a high-quality credit, its bonds even being oversubscribed. However, the first quarter after their issue was a weak one. The story illustrates that the junk market, for companies with 90 days of poor results, is more vulnerable than ever.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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Comfy cellular industry may dial 'C' for competition
Article Abstract:
Millicom Inc, a New York communications company, asks the FCC to set aside a part of the radio spectrum for the 'Personal Communications Network' (PCN), for enhanced cellular service. Currently, the FCC licenses only two cellular companies per market. If Millicom's request is approved, it could open some markets to include three to five cellular companies. Although action is probably years away, cellular stocks are vulnerable to the introduction of risk in a previously risk-free environment. Millicom currently has a significant market share in the UK but no profile in the US.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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