Content area
Full Text
AST Research is an aggressive company that doesn't shy away from risk. So, it stands to reason that aggressive investors, willing to take some lumps, would be most likely to buy into the Irvine-based computer maker that had the nerve, and, critics will say, the audacity, to enter the personal computer market in December 1986.
Back then, many PC clone manufacturers were getting the chips beat out of them in price wars that left several companies, such as Tandon and AT&T, in serious trouble.
But against all odds, AST has succeeded in establishing itself as a serious player in the PC marketplace, competing against the behemoth IBM and other well-entrenched PC manufacturers, such as Compaq, Epson, NEC and Tandy.
AST, founded in 1980, originally made a name for itself by tapping the large demand for PC add-ons, such as clocks and extra memory and multifunction boards, that were were not included in the earlier versions of personal computers.
During its glory years of 1984 and 1985, AST piled up hefty sales and profits from the sale of its SixPakPlus and Advantage enhancement boards. In November, 1985, the company's stock hit a high of $32 per share. Then, in 1986, with the add-on market shrinking, the company made a big bet that it could sell its own high-end personal computers and work stations.
Low of $7
That idea was not well received. AST stock price suffered a long and protracted nose dive, hitting a low of about $7 after the October stock market crash.
The poor stock performance was part of a downturn for technology in general and clearly reflected...