Windows 95 Hype Hit Warp Speed Too Soon
All that euphoria about Windows 95 is starting to dissipate just a little.
The hype began about a month ago. Analysts started talking about huge sales for the new operating system from Microsoft. They suggested not only that a gazillion copies of the system itself will be sold almost the second it hits the street, but also that it will cause ripple effects throughout the industry as businesses and individuals load up on new computers and new software.
Much of the talk was sparked by a report in the Wall Street Journal that saw Windows 95 as a whole new era in computing. Now comes a dose of reality.
Will millions of people rush out to spend hundreds if not thousands of dollars to upgrade their present systems just so they will work with an easier system?
Piper Jaffray analyst Bob Toomey, in commenting on Micron Technology, says adoption of Windows 95 has been slower than anticipated.
He urges investors to be cautious about Micron and other semiconductor stocks.
“A lot of poker winnings have been lost for not taking at least some of the chips off the table when one has made a bundle,” Toomey says.
He suggests that a pause or correction in semiconductor stocks would mean a dip down into the mid-40s price range for Micron, which closed Friday at $52.625. Microsoft ended the week at $90.88.
Stocks still reach for highs
Despite the bull market, many strong stocks haven’t returned to their highs of three years ago - or earlier.
IBM, which finally reached $100 a share Friday, was trading at $175 in 1987. Bausch & Lomb Inc., the lens maker, was 50 percent higher in 1992 than it is today.
Dow Theory Forecasts recently listed 17 high-quality stocks moving toward highs of yesteryear. The top picks are pharmaceutical makers Bristol-Myers Squibb Co. and Merck & Co.; Baker Hughes Inc., oil field services; Browning-Ferris Industries Inc., waste disposal; Crompton & Knowles Corp., chemicals; and C.R. Bard Inc., a medical device maker.
Three ‘Rs’ not elementary
The “Three Rs” doesn’t necessarily refer to elementary education.
According to a survey of 500 investors done for the American Association of Retired Persons, the letter can also stand for “read,” “research,” and “request.”
Those surveyed, all 10-year investors in AARP mutual funds managed by Scudder, recommended anyone considering their first investment first read extensively.
Follow that up with research into the kinds of plans and programs you might pursue, then request further guidance from an investment professional.
Respondents also suggested investors start early and, if necessary, small. Compounding over many years can turn even $10 a week into thousands of dollars.
How to shop for a job
On the bookshelf this week is an offering that will help you find a better job, or get a raise.
In short punchy style, “The Quick Interview & Salary Negotiation Book,” by J. Michael Farr, lives up to its claim that it will “dramatically improve your interviewing skills in just a few hours.”
When negotiating salary, for example, first make sure they want you. Then bracket your stated salary range to begin within the employer’s probably salary range and end a bit above what you expect to settle for.
, DataTimes