$6 billion in I.B.M. stock goes poof in 2 days
Article Abstract:
Institutional investors continued to sell IBM shares on Wednesday, Dec 16, 1992, driving the stock's price down $4.25, to $51.875. On Tuesday, the stock dropped $6.75, which means IBM's investors have lost more than $6 billion, or 17.5 percent, in two days. The sharp decline comes consequent to announcements of cutbacks, record losses and a possible dividend reduction. An observer says pension fund managers are heavy sellers because they are under orders to unload stock that falls by a prearranged percentage or risks a dividend reduction. Until recently, some analysts, such as Smith Barney, still recommended IBM's stock. Based on IBM's assurances that the dividend was safe and the company's business outlook was improving, Smith Barney had rated IBM a 'speculative buy.' On Wednesday, even Smith Barney backed away, changing its rating to 'hold.'
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
After I.B.M.'s fall - Microsoft?
Article Abstract:
The steep decline of IBM's stock means that other publicly traded companies will replace IBM as a core holding of choice. In the week of Dec 14, 1993, following release of news that IBM will cut its work force by 25,000 jobs, the computer maker's stock dropped by $10.875, closing at $51.50 on Friday. That value represents a 49 percent decline compared with 1992's high of $100.25 on Jul 16, and the stock is down 71 percent compared with its all-time high of $175.875 in 1987. An industry observer points to Microsoft Corp, the giant software company, as the obvious replacement for IBM. He downplays the significance of a rumor that the Federal Trade Commission (FTC) might recommend that Microsoft be broken up. Another observer agrees, saying that everyone's top choice as the stock to own for the next five years is Microsoft.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
Price data, IBM drop Dow by 62.13
Article Abstract:
Stocks have fallen dramatically following lower than expected earnings from IBM and the report on consumer prices for Feb 1991. The Dow Jones Industrial average dropped 61.13 points to 2,867.82, and volume trading was only 177.1 million shares, up from 163.1 million the previous day. The Labor Department's report that the Consumer Price Index rose seven-tenths of one percent dashed hopes that the Federal Reserve would ease short term rates, and led to plunging stock prices. IBM reported lower than expected earnings for its first quarter which contributed to the fall. Profits for the company are now expected to be only half of what they were for the same quarter last year.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1991
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Work stations from I.B.M. to offer Next Inc. software. I.B.M. notebook computers to be marketed by Hitachi
- Abstracts: Mobile computing is all American. I.B.M. cites brisk sales for new PC software
- Abstracts: NCR establishes an employee stock plan. MCI plan on often-called numbers
- Abstracts: I.B.M. makes changes in workstation line. Many orders for Storage Technology
- Abstracts: Big show amid computer industry chaos. In Silicon Valley, raised eyebrows