Copyright © 1998 The Seattle Times Company
Business News : Saturday, December 05, 1998
Boeing, Net stocks have a lousy week; Gates'
wealth grows
by Greg Heberlein
Seattle Times business reporter
In the long run, the past week in stocks may bear little significance.
But it was some week nonetheless.
Boeing took center stage, announcing much larger staff cuts,
production cuts, sales cuts and profit cuts than anyone imagined. Since
the Seattle aerospace king blamed order slowdowns from Asia, and
since many thought that issue had already been resolved, the entire
market was shaken as shareholders reappraised their holdings.
Boeing stock was shelled, diving $8.438, or 20 percent, to $33, further
ensuring Boeing's position as dead last among the 30 components of
the Dow Jones industrial average for the second straight year.
At the spectrum's other end, but still in greater Seattle, Redmond's
Microsoft became the most highly valued company in the world, at
$318 billion at week's end.
That made co-founder Bill Gates' stake worth $65 billion. If he were a
public company, he'd be the nation's 35th-largest. For more
perspective, that's worth more than all the stock in either Disney
($64.4 billion) or Ford Motor ($64.2 billion). Put another way, the
combined stock value of Boeing ($32.9 billion) and Washington
Mutual ($21.1 billion) still leaves $11 billion to raise not only
Jennifer, Bill and Melinda's first child, but No. 2, due in June.
On more mundane matters, the Dow fell about 450 points before
yesterday's 136.46-point rally enabled it to end at 9,016.14. That was
down 326.94 points this week.
Among 221 Northwest stocks tracked by The Times, 78 rose, 129 fell
and 14 were unchanged. The ratio of winners to all stocks on the move
was 38 percent. The WM Group Northwest 50, 50 stocks weighted by
their regional economic impact, fell 136.54 points to 5,881.91.
The week's stars were dominated by issues that some see as strong
contenders for upswings because they are believed to have
unrecognized value. Two that fit that description: Bellevue's Penford,
a chemical-ingredients developer, up $7, or 47 percent, to $22, and
Bothell's SonoSight, up $3.063, or 34 percent, to $12.125.
Hollywood Entertainment's Reel.com subsidiary made a deal with
America Online. Hollywood, an Oregon-based operator of video
stores, shot up 25 percent - $5.343 to $26.343.
Emeritus, a Seattle operator of senior housing, bought 125
communities for $168 million. The stock was propelled $1.688, or 17
percent, higher to $11.50.
Biotechs did well. Immunex said it would seek accelerated review of
its Novantrone cancer drug for multiple sclerosis. The stock rose
$12.25, or 14 percent, to $102.75.
Internet stocks generally got ripped as day traders, those who quickly
move in and out of stocks, abandoned much of the group for new
issues. Renton's Multiple Zones International plunged 51 percent,
down $7.50 to $7.125. Egghead.com surrendered 44 percent, off
$13.813 to $17.813. Fine.com International gave back 21 percent, off
56.3 cents to $2.063. Amazon.com retreated 13 percent, down
$28.125 to $188.50. Only Go2Net, a Seattle Web-site developer, was
unscathed, up $1.25, or 4 percent, to $34.875.
Another big loser was Aris, a Bellevue computer-program trainer.
The stock skidded $4.563, or 29 percent, to $11.437, trading yesterday
as low as $9.25. The company said it will take a charge to reflect a
restructuring.
Information from Bloomberg News is included in this report. Greg
Heberlein's phone message number is 206-464-2267. His e-mail
address is: gheberlein@seattletimes.com
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