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The BG Index Weakens
Since unveiling the BG Index more than two months ago, only a 1% increase was achieved. Double-digit percentage increases from American Business Information (ABI), Omaha, Neb., and Atlanta-based Equifax, Inc. were offset by losses from Autodesk, Inc., San Rafael, Calif.; MapInfo Corp., Troy, N.Y.; and Trimble Navigation Ltd., Sunnyvale,Calif. The index return underperforms a 4% gain realized for the Standard & Poors' 500 index (S&P 500) during the same period. Since the beginning of this year, increases posted by the BG Index and S&P 500 have narrowed to 40% and 27%, respectively.
Industry and index changes
A new company was added to the BG Index. Besides providing GIS consulting services through its TASC, Inc., Reading, Mass., subsidiary, Primark Corp., Waltham, Mass., is expanding its presence in the information services industry. Through a recently acquired unit, Disclosure Inc., Bethesda, Md., and in conjunction with New York University, Primark is providing U.S. Security Exchange Commission documents via the Internet. Primark also is affiliated with Microsoft Network (MSN). Because of those changes, Primark stock was added to the index Aug. 24, the date Windows 95 was released.
American Business Information's stock price is lower, due to a recent 3 for 2 stock split. The adjusted stock price, however, actually increased 17% during the last two months. ABI announced several new products, including a CD-ROM reference directory of 10 million U.S. businesses (see "Products," pg 62).
Landmark Graphics, Houston, declared a distribution of one preferred share purchase right for each outstanding share of its common stock. The rights, which expire in 10 years, entitle holders to purchase .01 shares of Series A junior preferred stock.
Index stocks include On-line providers
Microsoft Windows 95 debuted amid much fanfare. It also marked the beginning of MSN, an On-line service now competing with America On-line, CompuServe and Prodigy. Numerous service providers have a presence on MSN, including the index companies of ABI; Equifax; Intergraph Corp., Huntsville, Ala.; MapInfo; and the new addition, Primark. CACI Marketing Systems, Arlington, Va., has information available via CompuServe.
MapInfo's embedded mapping component, Data Map, is in the new Microsoft Excel and Office releases, which include a button that automatically connects users to MSN to download MapInfo products. The arrangement could have a favorable influence on future MapInfo sales and earnings and may significantly increase the use of mapping and data products in general.
Associated Chart being Prepared and Available Soon.
Business Geographics, November/December, 1995; pp 66.
(This article was reproduced with permission from GIS WORLD Inc., and Business Geographics.)