Dell Computer drops planned share offering

Article Abstract:

Dell Computer Corp's stock plunges $6.125 to $30.125 in national over-the-counter trading on Feb 24, 1993, after the microcomputer manufacturer withdraws a proposed $200 million offering of 4 million shares of common stock. The firm cites 'unfavorable market conditions;' while it expects 70 percent growths in sale in FY 1993 to at least $3.4 billion, profit margins might drop below 4 percent for the year. Dell generally reports net margins in the 5 percent to 6 percent range, but a microcomputer price war is forcing it to slash prices in order to gain market share. Dell's withdrawn offering is a blow to lead underwriter Goldman, Sachs and Co. Other computer vendors, including AST Research Inc and Compaq, see their stocks fall in the wake of the gloomy prediction from Dell. Dell and other big microcomputer makers are trying to consolidate their positions and force smaller vendors out of the market.

Company Profile, Price cutting, Market Analysis

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Packard Bell's initial offering may hit snags; PC makers' woes, shaky IPO market cited

Article Abstract:

Packard Bell Electronics Inc's $69 million, 5.2 million-share initial public offering (IPO) may not meet with enthusiastic acceptance, according to industry observers. Underwriters are hoping to get $13.50 to $15.50 a share, but revelations in the prospectus combined with a weak IPO market could conspire to reduce the offering price. Packard Bell established a niche for itself by putting its name on IBM-clone microcomputers and mass-merchandising them through low-cost channels including department stores, warehouse clubs and computer superstores. The mass-merchant channel is estimated to be growing at 36 percent annually. However, the Packard Bell prospectus puts 1991 gross sales at $819.5 million, well below the $1 billion that analysts had expected. In addition, the company's liberal return policy, for both customers and retailers, reduced sales by 17.5 percent, or $143.5 million.

Business planning, Sales, Outlook, Packard Bell NEC Inc.

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Dell stock falls again amid SEC scrutiny

Article Abstract:

Dell Computer Corp's stock plunges for the second consecutive day after the firm announces that its former foreign currency trading activities are still being examined by the Securities and Exchange Commission and an earnings restatement is still a possibility. The company's stock fell 7 percent, or $3.125, to $41.875 in very heavy trading on Feb 3, 1993. On Feb 2, traders pushed the price down $4 to $45. In late 1992, an analyst with Kidder, Peabody and Co suggested that the company may have used aggressive currency trading to inflate earnings. The SEC's corporate finance and enforcement divisions have allowed Dell to proceed with a proposed offering of 4 million common shares, but there remains the possibility that the agency will require the company to restate its earnings. Dell has denied all charges of impropriety.

Investigations, Foreign exchange, United States. Securities and Exchange Commission, Investigation

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