Word: ibm
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Dates: during 1970-1979
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...long that the opposing lawyers have argued over what to do should the judge, 68-year-old David Edelstein, die before it is over. The Government wants an agreement that would allow a new judge to pick up the trial where the old judge left off. But IBM has so far refused, which might mean starting virtually all over again...
...IBM, the Wall Street glamour stock whose price once soared to a lofty $733 per share, is finally coming down to earth. Last week the $18 billion-a-year computer giant announced a 4-for-1 stock split effective next May. That ought to bring the price of a single share down from about $284 last week to somewhere around $70-the lowest since 1932 and, for the first time in decades, within the reach of the average buyer. Says IBM Chairman and Chief Executive Frank T. Cary: "We want to make our stock more attractive to the small investor...
...IBM certainly does.not need to raise any new money from investors; it has $5 billion in cash and securities, or more than the monetary reserves of most nations. Instead, its motives appear to be pride and politics. A rising stock price confers more prestige on corporate managers than one that is just high. Despite IBM's dazzling record of sales and profit gains, its stock, adjusted for past splits, sells for a bit less than it did ten years ago. Reason: institutional and pension fund managers hold about as many IBM shares as they care to, since they want...
Still, the split represents a considerable shift in philosophy for a management that used to pride itself on having one of the highest-priced stocks around. Though IBM has declared six other splits in the past 20 years, they have been too modest (on the order of 5 for 4 or 3 for 2) to bring the price out of the stratosphere. But next year small investors are expected to seize the opportunity to buy in at Depression-era prices. As an extra inducement, IBM last week boosted dividends by $2.24 to an annual rate of $13.76 on the present...
...vigorous expansion once it ends. "It would be a horrendous error to try to fight the recession by anything other than minor palliatives," says Democrat Eckstein, who heads Data Resources Inc., the nation's leading economic analysis firm. Adds David Grove, a consultant to IBM who sometimes sides with the liberals: "The problem that the country has to face is whether it really wants to get the basic rate of inflation down very substantially, to cut it, say, in half. There is no way to accomplish that without going through a recession and having a couple years afterward...