The AFU and Urban Legend Archive AFU AFU, Inc. afu shares continue slide Select a topic - - - - - - - - Home Searches AFU FAQ - - - - - - - - AFU Animals Books Celebrities Classic Collegiate Death Disney Drugs Food GIF Language Legal Medical Misc Movies Politics Products Religion Science Sex Songs TV - - - - - - - - Other sites

From: "Thomas O'Donnell" <todonnel@otcdev13.silver2.lehman.com>
Date: Tue, 18 Oct 1994 13:02:22 -0400

AFU Shares Continue Their Slide

NEW YORK. Shares of AFU common stock continued to lose ground yesterday, with the stock dropping 1 7/8 to close at 23 1/2. AFU has lost 7 1/4 points since Labor Day.

Since early summer, the street has been awash in rumors about AFU's financial condition, initially focusing on allegations of improper commodities trading by an ousted director. The company's CFO contended that its currency hedging operations were appropriate to its overall business mix. "Our lines of business take us all around the world, and the .sigs alone cost hundreds, if not thousands, of dollars. Hedging the currency risk is not only entirely appropriate but might well be taken to be a fiduciary responsibility." Others ridiculed this contention, however, accusing AFU traders of arbitraging pennies against copper futures (and creating regional coin shortages in the process), speculating on latex options and even trying to put a lock on the baby formula market. "What you've heard about the cattle futures is just the tip of the iceberg," snorted one angry rival.

Then too, Wall Street analysts have noted the seasonality of AFU share prices. Preston Estep, netstock analyst at Churnham & Burnham, points out that AFU is traditionally weak in the fall, often experiencing sharp declines in the month of September. "The price drops each September because there are more sellers than buyers." Estep added that the seasonality has been verified using spectral analysis.