Alger Says Now That War is over CEOs No Longer Have Excuse to Hold off Spending; A Rolling Start in Capital Spending Anticipated.Business Editors NEW YORK--(BUSINESS WIRE)--April 28, 2003 Fred Alger Management, Inc. today released its monthly Economic Review. Alger expects that capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. will begin with a rolling start A rolling start is one of two modes of initiating or restarting an auto race; the other mode is the standing start. In a rolling start, the cars are ordered on the track and are led on a certain number of laps (parade or caution laps) at a pre-determined safe speed by the safety . Now that fear and anxiety are beginning to ease, CEOs and consumers seem to be turning, tentatively, to the future. "The combination of corporate scandals, a very difficult three years for share prices and geopolitical ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. uncertainty led most companies to focus on their core business rather than aggressively spend on future expansion," said Zachary Karabell, Sr. Economic Analyst and Futurist, Fred Alger Management, Inc. As the fog of uncertainty lifts, companies will begin to examine their free cash flow and the cash on their balance sheets and will start looking ahead to the competitive position of their business. CEOs and senior management will tentatively allocate money to new projects and new equipment, facilities or R&D. As a few companies ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale spending, others will take note, and they will begin to spend in order to keep up. "The end of the war in Iraq means that CEOs no longer have an excuse to delay serious consideration about the future. The past two years have been positive to the extent that companies across industries have improved their balance sheets and cost structures, but corporate America is now lagging consumer America," concluded Karabell. To read Alger's Market Review in its entirety, please visit www.alger.com. Founded in 1964, Fred Alger Management, Inc. is a leading asset management firm employing a bottom up approach in its attempt to identify the fastest growing companies in their respective sectors. Over four decades, Alger has continued its tradition of pure growth investing Growth Investing A strategy whereby an investor seeks out stocks with what they deem good growth potential. In most cases a growth stock is defined as a company whose earnings are expected to grow at an above-average rate than its industry or the overall market. , independent research and style purity. Fred Alger Management, Inc. offers investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and services to separately managed, sub-advised and wrap accounts. Fred Alger & Company, Incorporated offers mutual funds as well as institutional funds for defined benefit and defined contribution plans Defined contribution plan A pension plan whose sponsor is responsible only for making specified contributions into the plan on behalf of qualifying participants. Related: Defined benefit plan . |
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