CompuServe Messages

With all the speculation surrounding CBU's (Commodore Internationl) stock tumbling from $7 to $3.65 or so, I thought this migh help put things in perspective: AP 07/16 18:24 EDT V0298 Copyright 1993. The Associated Press. All Rights Reserved. SAN JOSE, Calif. (AP) — Apple Computer Inc. shares lost about one-fourth of their value Friday after the company reported its worst quarterly loss ever. It was the most active over-the-counter stock with nearly 19 million shares traded, more than six times the average daily volume. Investors showed more worries about Apple's short-term earnings and long-term ability to compete in a changing computer industry. Apple shares closed down $8.25 at $27.50, a 23 percent decline. Analysts predicted more trouble ahead for the nation's No. 2 personal computer maker. "The stock is not attractive unless it's below, say, $20," said Marianne Wolk of Prudential Securities Research in New York. The company reported Thursday a $188.3 million loss, or $1.63 per share, for the third fiscal quarter that ended June 25, including a $321 million pre-tax accounting charge to pay for the layoffs of 2,500 employees. Even without the charge, Apple's performance was well below the expectations of observers and market analysts. Revenue was $1.86 billion, up 7 percent from $1.74 billion a year ago. A year earlier, Apple earned $131.7 million, or $1.07 per share. It was the worst quarterly loss in the history of Apple. It lost $17 million in the April-June 1985 quarter and $53.1 million in the April-June 1991 quarter. Apple was founded in a Silicon Valley garage in 1976 by Steve Jobs and Steve Wozniak, and went public four years later. Its most recent layoffs were in 1991, when 1,500 workers were let go. In the past two weeks, Apple has handed out 2,100 pink slips to 500 overseas employees, 1,100 in the Silicon Valley area and another 500 elsewhere in the United States. It now employs about 13,900 workers, down from 16,000 last month. The layoffs were announced earlier this month, shortly after Michael Spindler was named by the Apple board to replace John Sculley as CEO. Sculley remains Apple chairman and will focus on strategic alliances. Apple also announced Thursday a broad organizational restructuring of the company to streamline operations. The company's profits have been squeezed by its need to keep up with price cutting in personal computer sales. ————————– Folks, that's a 23% decline in a single day…. down nearly two-thirds from its previous high of this year. Every major trading house has moved Apple from its HOLD list to SELL. Reportedly, Apple is way over inventoried… so we can probably expect to see some major price cutting on Apple computers for third quarter ('back-to-school) and fourth quarter (xmas). Should be interesting. Sales of Powerbooks have DIED, when just a few short months ago, they were selling at 100% the rate of last year's sales. Apple is in serious doo-doo. So, maybe the folks at CBM really do know what they are doing by investing only where they see real potential, and _not_ investing where they know they can't make money? What do you think?