BU SIN ESS Inflation Rate Zero Through February
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20 - MANCHESTER HERALD. Tues., March 22, 1983 / BUSINESS They don’t take Toma gives RHAM Why Democrats cooking lightly a sober warning talle^ on taxes Be wary of market's 'hot new issues' ... page 13 ... page 19 page 6 that doesn’t have some bugs in it,” $1.20 a share in '84 on revenues of Could be that the hot new-issue wnat went wrong? cent) represents a buildup at the merited a $500 million market retorts Friedman . “ and we about $250 million. market is about to cool off, or, at For starters, some institutional dealer (or retailer) level for intial valuation. expect some improvements will be Fortune Systems, it should be inventory stocking and demonstra “ It’s worth it,” he says. And he the yen' least, that some sanity is investors immediately dumped the made shortly.” duly noted, has some tough com returning to this highly speculative stock when it failed to run up. tion purposes — so a true test of the •battled off such reasons as the As for that $l-a share estimate, petitors — like IBM, Altos Compu arena. As one of the underwriters product’s suQdpss at the end user acceptance of the product, a Friedman fires back that “ I ’ll ter and Digital Equipment. And A solid case in point: The explained it: “ Everyone knew it has yet to be determined. favorable view of it by some swear on my mother's grave that I there’s some feeling that Fortune Clear, cold tonight; Manchester, Conn. surprising performance of For was going to be a hot deal and experts in the field, the potential never said that to anybody.” could v^ell become an also-ran in ACTUALLY, only 6 percent or growth of the marketplace and a sunny Thursday tune Systems, one of the'largest everybody wanted a piece of it. We the field, given the almost certain Wed., March 23, 1983 $1.5 million of that nearly $26 He wouidn’ ttalk figures, observ initial public offerings ever. It’s could have probably sold 12 million ' firm backlog of approximately $40 new technological breakthroughs — See page 2 shares if we wanted to. People million volume is attributable to million ($27 million, of which, by ing that the company’s still in a Single copy: 25fl: one of these technology plays — a in the heart of the company’s West Coast-based producer of a expected a quick move to at least end users. the way, represents orders from “ quiet period” after the recent business. / desk-top computer system that 25 to 27 and when it didn't happen, offering. However, sources close to iEatuhPBtrf Mpralb Thomson-CSF). Friedman’s response: “ We want some os">hem ran away (by One of the chief appeals of the Friedman’s thinking say the com management claims offers the to be a substantial factor in the computing capability and software selling). I still think it's an Fortune desk-top computer sys WHAT ABOUT the bugs in the pany feels comfortable with some marketplace and we’re damn well sophistication of many minicopu- attractive company.’’ tem is that it allows multi-users product? estimates of 60 cents a share this going to make it.” ^ ters with the price,gnd ease of use and a number of different applica-' "There isn’t anybody’s system year on sales of $125 million and of a microcoputer. M AYBE SO, but if you read the tions, such as the processing of text Before the public offering on company’s prospectus — plus talk and numbers, to be done at the March 4, it was a foregone to a couple of analysts who are same time. However, one analyst conclusion that Fortune was a familiar with Fortune and its who checked with some dealers winning stock. Original plans had management — you come up with reports complaints that the perfor Inflation rate zero called for the issuance of 4 million a slew of question marks. And mance of the system erodes Attention 4th, 5th, 6th Graders, shares at between $16 and $19 a these questions, which focus on rapidly once ybu get above three share. But the demand was so such areas as the makeup of the users. In other words, says this analyst, 2 great that the underwriters. First present sales base, the short Boston, Alex Brown & Sons and operating history, the quality of “ you’re talking alraut a system Junior High and High S c h ^ l Students Montgomery Securities, raised the management and the viability of that's far from polished.” Word processi^ mathematic W' through February '■ m . calculations and'^ccounting are among the system's major functions. Another significant question is By Denis G. Gulino Gasoline prices dropped 6.7 basket” of goods and services that • Dan Dorfman raised about management depth United Press International percent, part of an enormous 10.8 cost $100 in 1967. and quality. As it turns out, the percent decline within four The department said the pur months. 3 Syndicated three top men, including Fortune 1983 WASHINGTON - Falling gaso chasing power of the 1967 dollar chief Gary Friedman, were all line prices at the pump pulled Auto financing costs dropped 2.7 remained at 34.1 cents, the same as Columnist part of Itel, a supplier and ieasor of consumer prices down 0.2 percent percent, the seventh consecutive in January. IBM plug-compatible equipment in February and food and housing monthly decline, the department If the drop in fuel prices had not that went into Chapter 11 bank costs held steady to account for said. been included the overall index ruptcy in January of '81. In fact, only the second monthly overall Both factors pulled down the would have risen a moderate 0.3 Friedman was a co-founder and decline in the governnient ipdex in major category of transportion percent, the department said. III offering price to $22 and swelled the product itself, raise strong second in command at the com more than seventeen years, the prices down 1.6 percent in Febru Clothing costs went up 0.5 the numter of shares to 5 million. doubts in some Wall Streeters’ pany. And in December of '82, a government said today. ary while food and housing costs percent, reflecting the slowdown of minds-as to whether the Fortune law firm appointed to conduct an The drop in the Labor Depart did not change at all. sale prices for winter merchandise IN EFFECT, it was just about a offering was premature. investigation into Itel (as part of ment’s Consumer Price Index for The Consumer Price Index for and the introduction of more $500 million offering (given a Moreover, some believe that reorgnization) recommended that February, after seasonal adjust February, b e fm adjustment to expensive spring wear, the depart grand total of 22.7 million shares) Fortune’s shares are excessively the company pursue causes of ment, canceled the 0.2 percent show changes beyond routine ment said. for a virtual start-up company — priced at current levels, given action against Friedman, among increase for January to produce a seasonal patterns, was list at 293.2, Medical care costs kept escalat zero rate of inflation for the first equivalent to a cost of $293.20 for ing at a double digit annual rate, one that was incorporated in whatScould turn out to little others, for breach of duties as an U P I photo September of '80 and which didn’t more than a commodity-type pro officer and director. two months of the year. the government’s sample “ market with February’s overall medical begin commercial shipments until duct down the road in an intensely costs climbing 0.8 percent, part of H.B. BRASELTON (LEFT) AND HIS BROTHER. H.F. last August. competitive environment. Further, Friedman, some say, is the past year’s l l , l percent jump. Heightening the excitement of A first glance at the company’s a stock tout. A couple of analysts While the subcategory of pres . seljing their Georgia town for $14 miiiion Fortune shareholders (lots of them sales base leaves a positive im who’ve been in touch with him cription drugs and medical supp • . V ■ • institutional), as well as the pression. Sales were $21,000 in the personally told me he had sug lies was up 0.3 percent, doctors underwriters, was the super per first quarter of '82, $245,000 in the gested that the company would Reagan to give raised their prices a full 1 percent formance just a day earlier of second, $7 million in the third and earn over $1 a share this year on and hospital charges jumped 1,6 another new-issue in the technol $18.5 million in the fourth — giving sales of about $125 million. percent in the single month, ogy field — Apiolo Computer. the company a first year volume of However, some close followers A narrower index covering pri Family town for sale Originally set to come out between nearly $26 million. of the company suggOst 60 cents a ces typically paid by wage earners $15 and $18 a share, its price was and clerical workers, also went The company had an '82 loss of share is a more realistic figure. By Joe Parharh also increased to $22. And in the $3.2 million, but this is basically And one analyst thinks it could be down 0.2 percent after seasonal defense secrets United Press International told the banker, ‘Mr. Green, Daddy* sent us up first day of trading, Apolo’s shares attributed to initial start-up costs.