Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.invest From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: invest Wed, Aug 19 1992 Date: Wed, 19 Aug 92 04:20:00 EDT Message-ID: 08-19 0000 DECISIONLINE: Personal Investing USA TODAY Update Aug. 19, 1992 Source: USA TODAY:Gannett National Information Network WANG FILES FOR CHAPTER 11: Wang Laboratories filed for Chapter 11 bankruptcy protection Tuesday, casting new doubts on its future as a stand-alone computer maker. The filing protects the company from creditors and gives it time to reorganize assets. Richard Miller, Wang's chief executive, said he expects Wang to emerge from Chapter 11 as a smaller company. FILING NO SURPRISE TO ANALYSTS: Few analysts were surprised by the bankruptcy announcement by Wang Laboratories Tuesday. "It's been on a downward spiral for some time," says William Zachmann of Canopus Research in Duxbury, Mass. Wang CEO Richard Miller plans to slash 5,000 jobs, or 39%, from the 13,000-member work force. Miller also wants to shrink Wang to a company with annual sales of $1.4 billion. SUN TO JOIN S&P INDEX: Shares of Sun Microsystems Inc. could rally because Standard & Poor's Corp. will add the stock to its benchmark S&P 500 index at the close of trading Wednesday. S&P said it's adding Sun, based in Mountain View, Calif., to replace Wang Laboratories Inc., which has filed for Chapter 11 bankruptcy protection. Sun has a 40% share of the workstation market. DELL CLAIMS PC WAR VICTORY: Personal-computer makers are locked in a long-running, profit-draining price war. But discount manufacturer Dell Computer is claiming victory. Dell said Tuesday net income soared 77% to $21.9 million in the second quarter ended Aug. 2 from $12.4 million a year earlier. Shares of Dell jumped 2 1:8 to $25 3:8 on the news. BALLY'S GETS CASH INFUSION: Creditors of a debt-ridden subsidiary of Bally's Manufacturing will receive cash, stock and new mortgages in a reorganization, company officials say. Bally's Grand is protected from creditors under Chapter 11 bankruptcy. Bally reported its best second quarter in three years last month, earning nine cents a share, vs. a loss of 45 cents a year earlier. CHRYSLER GETS CREDIT EXTENSION: Chrysler, trying to accelerate its climb back to competitiveness, has persuaded 152 banks around the world to extend its $6.8 billion credit agreement through 1995. The carmaker's existing line of credit wasn't set to expire until next year. But Chrysler, about to launch its crucial LH sedans, wanted the time-consuming negotiations finished early. CHRYSLER STOCK SLIDES: Though Chrysler managed to get an extension on its $6.8 billion line of credit, Wall Street wasn't impressed. Chrysler slid 1:8 Tuesday to $21 1:8. Terms of the deal may be a reason. Chrysler will pay 1.5 percentage points of interest over the prevailing LIBOR (London Interbank Offered Rate) amount. Currently, the LIBOR rate is around 3 3:8%. IBM, SEARS TO LINK: IBM and Sears are creating the largest computer-network services company in the USA. When the joint venture, Advantis, comes online by year's end, it already will have $1 billion in annual revenue. In a related development, the Wall Street Journal reported Tuesday that British Telecommunications PLC plans to build a computer network with voice, data and video transmissions. ELJER DISPUTES ANALYST'S VIEW: Officials of Eljer Industries Tuesday disputed an analyst's assessment of product liabilities that may be pending against it. Eljer stock rose more than 48% Monday after a court ruling said a former insurer had to cover damages from product liability claims filed against an Eljer subsidiary. Analyst Chriss Street says Eljer still could be responsible for claims not yet filed. DOW UP IN MODERATE TRADING: Stocks edged higher in moderate trading Tuesday. The Dow Jones industrial average gained 4.59 points to 3329.48. Broader indexes were mixed. Winners beat losers 922 to 783 on the New York Stock Exchange, where volume was 172 million shares. U.S. stocks performed well considering huge losses in Tokyo, where the 225-stock Nikkei average sank to its lowest level in 6 1:2 years. GOLD DOWN, SILVER MIXED: Gold fell in light trading while silver was mixed. Gold for August delivery fell $1.10 to $335.80 on the Commodity Exchange. Republic National Bank of New York quoted a bid of $336.40, down 85 cents. Gold fell in London to $336.00 from $337.20. Silver rose in London to $3.80 from $3.79. On the Comex, silver was quoted at $3.771 an ounce, down 0.9 cent. DOW JONES OPENS SLIGHTLY UP: The Dow Jones average of 30 industrials opens Wednesday at 3329.48 after closing up 4.59 points Tuesday. The New York Stock Exchange composite opens at 231.90, up 0.30. The American Stock Exchange market value opens at 386.81, up 0.13. The NASDAQ OTC composite opens at 570.87, down 1.60. DOLLAR OPENS DOWN OVERSEAS: The dollar opens mostly down on Wednesday. It opens at 0.5179 British pounds, down from 0.5187; 4.9400 French francs, down from 4.9565; 1.4563 German marks, down from 1.4618; and 126.07 Japanese yen, up from 125.60. (As of 3 p.m. Monday. Source: First American Bank of New York.) 24-HOUR TELEPHONE INFORMATION: USA TODAY Money Hot Line. 95 cents a minute. 1-900-555-5555. Personal Investing editor: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution purposes violates federal law. This article is copyright 1992 Gannett News Service. 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