#Commodore stock
7 messages in this thread
Why has Commodore's stock gone into the empty elevator shaft? It has
dropped down to 10.50 points, from a 52-week high of 19 points. As a Commodore
shareholder, I am quite worried about what has happened to this stock.
Naturally, I have heard absolutely nothing from Commodore. They only send
me information about the stock whenever they post a profit. The never send me
any information whatsoever when they post a loss. BTW, what is the official
reason for Commodore's recent losses?
There have been quite a few discussions here about the possibility of a
buyout of Commodore by Hewlett Packard. With Commodore's strong manufacturing
facilities, weak management (understatement of the year), and low stock value,
this does make Commodore a takeover target. Heck, I would approve a buyout of
Commodore by anybody, if they would market the Amiga seriously, and fire the
current president, CEO, and board. What is the latest about Commodore and
Hewlett Packard?
Marc Barrett
(71131,2425)
Commodore stock is down because the company issued a press release stating that
they were expecting a loss for the June quarter. This loss, if you read into
the release a bit, ought to be no more than 30 cents a share or so. The
official statement was that for the year ending June, 1989 profits would be
nominally above the year ending June 1988, implying a 30 cent a share loss,
maybe less, for the June quarter. Reasons cited were, currency considerations
(the dollar is higher which makes German Marks less valuable in US currency,
and the timing of purchases (when the yen was higher). The release also cites a
larger than anticipated decline in consumer sales, as well as an increase in
operating expenses reflecting new marketing programs. My own sense of it is
that whereas c-64 and amiga 500 sales are slowing, Amiga 2000 particularly in
professional and niche markets are doing pretty good.
The company normally only communicates with shareholders twice a year–the
annual report, and a midyear report. In the last 3 years the company produced
profits in every quarter, so if youve owned the stock less than 3 years, you
would only have heard about profits.
As to the Hewlett Packard thing….that was the subject of a few paragraphs in
the rumor section of the latest info magazine. No one really knows, and I have
heard nothing else that would lead me to belive it is more than just a rumor.
The loss is official. I don't know how much it was, though. There was an
initial drop on the expectation and now this continuous plummet after the
official info.
— Ethan
Marc,
It has dropped because Commodore has announced twice in the last few months
that it is expecting fourth quarter losses — based upon money excange rates
and also because of a softening consumer market in certain "key" markets.
STeve
The reason is stated in the Wall Street Journal that the reason is that the
dollar is strong in European markets so the exchange rate shanges the way our
profits look. I am not a stock broker or anything like that, and don't really
understand it but that is the reason given.
Greg Givler
Commodore Online Support
Greg,
Dunno if you've been here before, but it's good to see someone represent CBM
technically. No offense Andre.
//
\X/ Lynn
Right now, I think the November $12 1/2 options are a much better buy than the
stock. I put some money where my mouth is today, getting some at 5/8th's. A
technical reaction to the price drop ought to double the option price. The
stock came off the floor (9 3/4) today on VERY GOOD and steady buying. Rob.