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The Positive Sum Strategy Harnessing Technology for Economic Growth (1986) / Chapter Skim
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A View From Wall Street
Pages 467-472

The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
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From page 467...
... Morgan Stanley underwrote a commonstock offering of IBM in 1957, when the stock was selling at40 times earnings and at less than a 1 percent yield basis. Our major job was to convince people that they should buy a stock that was selling at such a high earnings multiple and such a low yield.
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From page 468...
... The Treasury Department calculated the potential loss of tax revenues by taking the 21 percent difference between the 49 percent rate and the proposed 28 percent rate and dividing it by the 49 percent rate. Then they multiplied the resulting percentage by the total dollar amount of capital gains paid in the previous year and said that was what the Treasury would lose.
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From page 469...
... As a member of Me board of the Geraldine Rockefeller Dodge Foundation, I have heard the presentations of a number of investment managers who came before the board for periodic reviews. Two of Me investment managers were leading buyers of the smaller companies' common stocks and had done very well in the several years before rnid-1984.
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From page 470...
... As ~ consider the future, ~ recall the words of the head of Morgan Staniey's research division, Dennis Sherva, the acknowledged expert in the investment world on small-growth stocks: "The Double with investing in small-growd~ companies is that every week they take one of those stocks out and shoot it." There have been a number of excellent examples recently. As a result of unexpectedly poor earnings, some highly regarded highfliers have been shot, if not in the head, in Me foot.
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From page 471...
... They will be able to obtain financing, but it will take very good quality companies to accomplish this feat. In conclusion, it can be expected Mat volatility will persist in high-tech stocks and that there will be very quick reactions to disappointments in earnings; the IPO market will return, as it has in the past, but only slowly; valuations for both public offerings and private placements will be much lower.
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Key Terms

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  • morgan stanley
  • venture capital
  • times earnings
  • capital firms

  • percent rate
  • investment strategy
  • public offerings
  • poor earnings
  • companies looks

  • quality companies
  • treasury department
  • investment managers
  • confidence reestablished
  • securities industry

  • william perry
  • percent passes
  • common stocks
  • discussion flows
  • wang set

  • personal experience
  • congress cut
  • stanley underwrote
  • treasury officials
  • finally able

  • tax revenues
  • rate brought
  • sponsored none
  • geraldine rockefeller
  • means committee


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