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,-THE HOUSTON HOME JOURNAL, SATURDAY, DECEMBER 29, 1990
10A
The computer game; AT&T makes wise choice
In light of AT&T's recent S 6
billion cash bid for computer giant
NCR Corp., a phone call as placed
to John Bain, Raymond James'
Telecommunications analyst, to get
his thoughts on the proposed deal.
Here is what John said:
"AT&T absolutely must
maintain a presence in the computer
industry if it hopes to participate
fully in the future growth of the
overall information processing and
transmission business. Since the
company has been unable to
develop its own computer business,
buying one makes sense."
AT&T will acquire a proven
management and produce! line in a
very well established company. At
roughly S 6 billion in revenues,
NCR is about half the size of
AT&T's own manufacturing and
product sales segment. This would,
therefore, be a very meaningful
acquisition in terms of the scope of
AT&T’s activities.
Also, NCR is one of the few
major computer companies to have
adopted AT&T's unix operating
system. The NCR architecture
should be amendable to adoption of
Christmas T-shirts
Students in the first grade at Tucker Elementary made special t-shirts for Christmas. The
shirts, made with paint and sponges, were made with the help of several mothers, including Amy
Harris' mother, Jennifer Harris' mother, and Kyle Padgett's mother. Other students showing off
their shirts are Molly McKinley, Nikki Thompson, Sarah Register, Laltakka Washington, Titus
Billings, Chris Dekmar, Carla Pierce, Cassie Simmons and Michelle Coates.
Guard unit receiving
hometown news
V
Jack L. Witty
Financial adviser
any developments from AT&T's
own considerable research and de
velopment effort.
Although the slock market has so
far taken a dim view of this deal,
the timing could be good. I feel that
most of the market's movement
downward is a result of the Middle
East situation and not business
fundamentals alone. AT&T is
finally beginning to show signs of
success in major business seg
ments, and has apparently done
quite well with its credit card
project. If long distance market
Jdapyy O\[ezo year to
the Members of the
48th ‘Brigade
S & E Sales & Service • Comfort Inn • The Body Boutique • Ralph's Snack Shop • Auto Shade
Hamby Chevrolet • The Red Barn • H & H Bonding Service • Fresh Air Bar-B-Que • Bank South
Farmer's Furniture • Mark Powell Chrysler-Plymouth-Dodge • Rural Electronics • Family Pontiac
The Golden Palette • Home & Hearth • Carpet Express • Perry Hospital • Butler Chevrolet-Oldsmobile-GEO
Macon Feed & Seed • Rosey's Dry Cleaners • PPG Industries • Akin Drug Company • Scrupples
Crazy J's Party Shoppe • American & International Travel • Wayne Morris Ford • GTE South
Handyman Hardware • Holiday Inn • Hays Wrecker Service • Investment Management & Research Inc.
Tolleson Supply Co. • Kmart • Mid-state Insulators, Inc. • First Family Financial • Trust Company Bank
Walker Rhodes Tractor Co. • Warner Robins Supply • Perry Brake & Muffler • Woodruff's Auto
Beckham Brothers Dist. • Perry Pawn Shop • Edwards-Harper • Jones Jewelers
Pennington Plumbing & Electric • Perry Hosiery & Lingerie • Nelson & Turk Used Cars
Production Credit Association • Harrell's Greenhouse • Arnold's Auto * Moss Pharmacy
New Perry Nursery • Connors Decorating • Beavers & Moore Ins. • Harold's Amoco • Precision Tire
Preferred Trophies • Interstate Body Shop • Tuggle & O'Neal • Kellwood Outlet • Crossroads Bank
Jim Clance • Atlanta Coca-Cola Bottling Co. * Houston Lake Country Club • Jones Surveying Co.
Charlie Pike Chevrolet • The Travel Center • Northrop Corp. • Quality Inn • The Citizens' Bank
shares stabilize, as they seem to
have done, and AT&T can continue
to improve margins on its sales of
traditional telclcommunications
equipment, they could turn out to
be a good performer when the
economy pulls out of its current
slump.
John went on to say that AT&T's
near term earnings could suffer if
NCR is acquired. Assuming a $6
billion price tag, profits could
approximate $2.75 per share in
1991, Bain estimates. A higher
price for NCR would mean
proportionately lower earnings.
I prefer to look at the longer term
and look past the short term drop in
earnings, but for the shorter term
AT&T may no longer qualify as a
stock suitable for "widows and
orphans", like it was before the
court mandated break up in 1984. In
other words, the slock could well
become a more volatile and less
reliable market performer than
conservative investors can stand.
Also,it is possible that dividend
growth would not be in the cards
for some time.
For the near term, analyst Bain
In an effort to help members of Delta Company of the 48th
Brigade of the National Guard Keep up with happenings
at home while they are on active duty, The Houston Home
Journal, along with leading members of the business
suggested switching out of AT&T
and into GTE or one of the "Baby
Bells" such as Bell South or
Amcritcch.
Please give me a call at 923-991 X)
if you need to discuss AT&T or any
other investments. As with any
advise offered in this column, sorry,
but there are no guarantees as to
eventual outcomes. Be sure to
consult a trusted advisor before
acting. 1 hope all had a wonderful
Christmas and may 1991 bring
health, happiness and prosperity to
all. Have a great New Year.
Jack Willy is a registered
representative with Investment
Management & Research, Inc., a
member of NASD/SIPC. IM&R is
an affiliate of Raymond James &
Associates, Inc., a New York Stock
Exchange Firm. IM&R has offices
in Warner Robins and Perry.
Area Births
Carter daughter born
Christina Noel Carter was born
on December 20 in Taylor Regional
Hospital in Hawkinsville to Paula
and Rob Carter of Perry. Her sister
is Jessi and her brother is Dallas.
Grandparents arc Thomas and
Elizabeth Hill of Elko and David
and Marlene Carter of Perry. Great
grandparents arc Jeanette Vowel of
Philadelphia, Miss., Floyd and
Dorothy Carter of Bradford, Penn,
and Pauline McDowell of Elko.
Son born to Pearce
Robert Dalton Pearce was born
on December 19 in Houston Medi
cal Center of Warner Robins to
Jamie and Robert Pearce of Perry.
Grandparents arc Jim and Kalhie
Kueven of Millcdgcvillc, Jerry and
Mabel Moss of Perry and Louis and
Maryann Pearce of Swainsboro.
Great-grandparents are Earnestine
and Claude Davis of Kathleen and
Elsie Kueven of Hawkinsville.
Toomer daughter born
Shanlcll Eugenia Toomer was
born on December 18 in Perry
Hospital to Joanne Toomer of
Perry. Grandparents arc Mr. and
Mrs. Charles Green of Perry.
Wishing You Fun ri v
In V1! \
WOODRUFF AUTO SALES
ANO M’
AUTO mm RENTAL!!
912 Commerce St. at Washington St
Downtown Perry * 987-0053
TO SUBSCRIBE TO THE HOME JOURNAL, CALL
987-1823
THANK YOU
for the biggest and best year ever!
Happy New Year
1991
community listed above, is providing each soldier with a
free subscription to their hometown newspaper. The
courtesy subscriptions are being mailed to the soldiers
until they return home.