Alex. Brown shares tumble Greenspan remarks spark $3 drop

October 21, 1995|By Bill Atkinson | Bill Atkinson,SUN STAFF

Alex. Brown Inc.'s high-flying stock tumbled yesterday by $3, and it has lost 21 percent of its value since its high last month.

The stock closed at $47.625 a share, the day after the company released strong third-quarter results.

Alex. Brown was one of a number of financial firms whose stock was hammered yesterday after Federal Reserve Chairman Alan Greenspan hinted that interest rates might not be cut soon.

Shares of Merrill Lynch & Co. fell $2.125, to $57.375, Morgan Stanley Group Inc. was down $4.125, to $87.875, and Dean Witter Discover & Co. slipped $1.875, to $52.

Alex. Brown officials could not be reached for comment.

The company's shares started slipping to the low $50s last week, after they hit a high of $60.625 on Sept. 5. The stock has been climbing since January, when it was in the $29 range. Around that time, rumors surfaced that foreign concerns, including National Westminster PLC, were interested in acquiring the Baltimore-based investment banking firm.

On Thursday, the company reported that revenues were up 45 percent and profits had jumped 73 percent. The company earned a record $4.06 a share through September.

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