Stocks Plummet Amid Industry Woes

Strategic Insights -

Boston Chicken Inc. shares lost 37 percent of their value Friday after their independent auditor expressed doubts about the company's ability to continue as a going concern. This news came on a day when several major companies announced significant setbacks, including a shift in management at ABC News and the imposition of a new fee by AT&T Corp.

Key Takeaways:

  • Boston Chicken Inc. shares plummeted 37 percent to $2.03 after the company's independent auditor expressed doubts about its ability to continue as a going concern.
  • ABC News President Roone Arledge is stepping aside, handing over full control to David Westin, and will retain his title as chairman to consult on news division matters.
  • AT&T Corp. will begin charging residential long-distance customers a new fee of 5 percent of the overall bill for interstate and international calls, plus 1.8 percent of in-state long-distance calls, to help pay for internet connectivity for schools, libraries, and rural health-care facilities.
  • Montgomery Ward & Co. will close nine stores, including one in Carbondale, Ill., due to underperformance.
  • Union Pacific Corp. shares fell 5.8 percent after warning of a second-quarter loss due to track congestion and shippers' claims.
  • Bentley International acquired the assets of Best Credit Bureau, a company that provides credit reports to mortgage companies and consumers in the Miami area.

Statistics:

  • Boston Chicken Inc. shares lost 37 percent of their value, falling $1.18 3/4 to $2.03.
  • AT&T Corp.'s universal service charge for residential customers will be 5 percent of the overall bill for interstate and international calls, plus 1.8 percent of in-state long-distance calls.
  • Union Pacific Corp. shares fell as much as 5.8 percent to $46.75 before recovering slightly.
  • Montgomery Ward & Co. will close nine stores, including one in Carbondale, Ill.
  • Bentley International acquired the assets of Best Credit Bureau, but terms of the deal were not disclosed.

Sources:

  • "Boston Chicken's stock is in the soup" by an unidentified source (published on an unknown date)
  • "Roone Arledge said Friday he is turning over full control of ABC News to David Westin" by an unidentified source (published on an unknown date)
  • "AT&T will levy new fee" by an unidentified source (published on an unknown date)
  • "Bentley buys credit bureau" by an unidentified source (published on an unknown date)
  • "Carbondale store closing" by an unidentified source (published on an unknown date)
  • "Union Pacific stock tanks" by an unidentified source (published on an unknown date)