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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: Rarebird who wrote (28647)	1/24/1998 5:49:00 AM
From: Ed's Head	Read Replies (1) \| Respond to of 50808

Rarebird: If the stock drops a point on good news, I'm glad there.... was no bad news! What Makes Stock Prices Go Up And Down? Stock prices, like the prices of all goods, are determined by supply and demand. The supply of stocks are generally fixed at set amount of shares which are determined by the corporation. The demand for these stocks is determined by a variety of factors. Generally, good news about the company increases the demand for the stock and therefore its price. Bad new about the company decreases the demand for the stock and therefore its price. Examples of "Good News" about a company include: 1. Increased Profits - report about the increased profits of a company usually indicates that the company is prospering and may increase its dividends. This may draw investors and increase the price of a stock. 2. Take-Over Bids - A take over bid is an attempt by one company to buy another through stock acquisition, by buying enough stock to control it. The stock for the company being taken over becomes more valuable as the larger company makes offers. Investors want to own stock in the smaller company before the take-over, to share in the price rise. The Philip Morris take-over of Kraft is such an example. 3. Divestiture - Large conglomerates often have one division of their corporation which does not make money. By announcing the sale of its losing interests, its potential for profits increases and its value will rise. For example, Coca-Cola sold off its ownership of Pizza Hut and Taco Bell food outlets. Since these companies were not making a very large profit, after they divested Coca-Cola's profits per share increased making the stock more attractive to investors. 4. New Product Line - A company which produces a new product, such as Coca-Cola's new Surge soft drink, may draw investors who will bid up the price of the stock because they believe the new product will increase profits for the company. 5. Government Spending - The government buys one-third of all the products produced in this country. If the government decides to buy products from a particular company that company is virtually assured long term profits and the value of their stock will rise. For example, the Defense Department decides to give a large contract to the Boeing Corporation to produce 100 new Stealth Bombers. Examples of "Bad News" about a company include: 1. Decreased Profits - report about the decreased profits of a company usually indicates that the company is doing poorly and may decrease its dividends. This may detract investors and decrease the price of a stock. 2. Accidents, Health Problems - For example, the Exxon oil spill in Alaska required billions of Exxon's dollars for cleanup, which in turn lowered the profits of the company. Reports that red meat increases the risk of heart problems, caused the consumption of beef to decline and lowered the profits of the Armour Food Processing Company. 3. Lawsuits - Legal problems tend to make investors sell their stocks. For example, securities and exchange commissions investigations of a company scare off investors and lower the price of a stock. For example, the investigation the Archer Daniels Midland Company (ADM) was investigated for price fixing of food additives and was fined millions of dollars. Tobacco Companies are currently being sued by many states to recover health care costs to treat cancer victims. Other Factors Which Affect Stock Prices In General 1. Interest Rates - High interest rates make it harder for companies to borrow money for expansion. This may result in slower growth and lower their profits, thereby reducing the value of their stocks. Stable or lower interest rates encourage borrowing and growth, which tends to make stock prices rise. 2. International Events - Wars, political events such as revolutions, the death of a leader,and the formation of a world wide cartel such as OPEC can influence stock prices in the United States. 3. Tax Policies - Increases in taxes on businesses or consumers tend to lower the value of stock because sales and profits will decline. Tax cuts tend to increase the value of stock because profits and sales will increase. good luck c-ya!

To: Rarebird who wrote (28647)	1/24/1998 10:25:00 AM
From: Stoctrash	Read Replies (3) \| Respond to of 50808

Great call on MO, but wasn't it 6 points higher? Are you averging in here on MO? BTW...check out the MMM thread, its another EK waiting to happen later this year, IMO. Your Friend, Fred :-)

To: Rarebird who wrote (28647)	1/24/1998 11:47:00 AM
From: Cameron Lang	Read Replies (1) \| Respond to of 50808

Okay, Bird. You win... this time. You obviously no longer think CUBE will go to 8. When you go long "this summer," we can all play nice again. :o ------------------------RAREBIRD-O'-METER------------------------ Bird Fowl Chicken Medium Wing & Birdie Nest Brain . . Play . . Little . . Rare . . Prayer . . Putt . . Egg -> X <- -----------------------------------------------------------------