Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.invest From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: invest Wed, Jul 15 1992 Date: Wed, 15 Jul 92 05:08:08 EDT Message-ID: 07-15 0000 DECISIONLINE: Personal Investing USA TODAY Update July 15, 1992 Source: USA TODAY:Gannett National Information Network OIL AND GAS TAKE OFF: Oil-and-gas companies' stocks rose Tuesday, buoyed by buy recommendations, warm weather and international events. Pennzoil closed up 3 7:8 at $48 7:8. Amoco: Up 1 3:8 at $50 1:4; Anadarko Petroleum, up 1 5:8 at $27. One exception: Independent oil refineries, which can't easily pass on crude oil price increases. Ashland Oil was down 1 at $24 1:2 and Sun unchanged at $26. BROKERAGE EARNINGS STRONG: Falling interest rates continued to help brokerage earnings last quarter. Some top brokerages Tuesday said that second-quarter earnings were higher than a year ago. Investment banking helped gains. Primerica, parent of Smith Barney, said second-quarter net income was $151 million vs. $117 million a year earlier. Its shares rose 1 3:4 to close at $40 7:8 Tuesday. COMPANY `UNUSALLY ATTRACTIVE': Air Methods, new leader of the aeromedical industry, may be a hot prospect. "We believe Air Methods is a virtually undiscovered, unusually attractive investment," says a report by brokerage Josephthal Lyon & Ross, which makes a market in the stock. Air Methods operates helicopter and airplane ambulances. WinterGreen Research predicts industry revenue of $255 million this year. COMPANY SOUNDS LIKE GOOD BUY: Advest recommends buying stock in Boston Acoustics, which makes automobile- and home-stereo speakers. The company has produced 13 consecutive years of record revenue and earnings, which is particularly impressive considering the sluggish economy, the brokerage says. Boston Acoustics' outlook is strengthened by upcoming product introductions, Advest says. SEC RULE COULD LOWER FEES: A rule approved Tuesday by the Securities and Exchange Commission could mean lower fees and sales charges for mutual fund investors. In addition to the up-front sales charge, or load, some companies have annual marketing fees, called 12b-1 fees. The rule will make some funds that charge 12b-1s reduce their loads. And some may have to cut 12b-1 fees. The rule takes effect next July. DIVIDENDS GETTING BOOST: More companies are boosting dividends on their stocks this year, a sign that they're growing more optimistic about profits. But stock yields - the annual payout from the company to the shareholder divided by the stock price - are low by historical standards. But in today's low interest rate, low inflation environment, stock yields are high compared to other yields. ECONOMY AS GOOD AS IT WILL GET: Experts say the economy is about as good as it will get until 1994 or 1995, despite short-term interest rates at 29-year lows, levels that theoretically should stimulate borrowing and spending, kicking the economy into higher gear. Economist Jeffrey Rosensweig says "there will be money to be made" in the second half of the decade. Until then, interest rates likely will stay low. T-BOND YIELDS WON'T MOVE MUCH: Economists at the National Association of Manufacturers expect yields on 30-year Treasury bonds to average 7.3% next year, after averaging 7.6% this year, as the economy hovers near its current position. Economists say low interest rates will continue to prop up the stock market because it will be the only place where there's a chance to make money. But gains are likely to be slight. PRO PREDICTS TOP EARNINGS: Investment pro George Jacobsen suggests investment in stocks such as drug maker Eli Lilly, ketchup king H.J. Heinz and household products giant Colgate-Palmolive could show potential gains of 35% to 40% over the next 18 months. Jacobsen predicts earnings growth of up to 15% a year over the next three to five years, twice the rate many see for Standard & Poor's 500-stock index. STOCKS MOVE UP ON REPORTS: Stocks rallied Tuesday after economic news and earnings reports fulfilled expectations. The Dow Jones industrial average rose 21.08 points to 3358.39. Broader market indexes also gained. Winners beat losers 1,095 to 659 on the New York Stock Exchange, where volume was 196 million shares. There was little reaction to government figures on inflation and retail revenue, which met expectations. GOLD UP, SILVER MIXED: Gold and silver prices were up. On the Commodity Exchange, gold for current delivery was quoted at $351.10 per troy ounce, up $2.00. Republic National Bank quoted the metal at $350.60, up $1.90. Silver bullion fell in London to $3.94 from $3.93 but on the Comex, silver was quoted at $3.938, up by nearly 2 cents. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Wednesday at 3358.39 after closing up 21.08 Tuesday. The New York Stock Exchange composite opens at 229.51, up 1.47. The American Stock Exchange market value opens at 386.08, up 2.94. The NASDAQ OTC composite opens at 575.21, up 4.99. DOLLAR OPENS UP OVERSEAS: The dollar opens up on Wednesday. It opens at 0.5210 British pounds, up from 0.5187; 5.0030 French francs, up from 4.9890; 1.4832 German marks, up from 1.4770; and 125.05 Japanese yen, up from 124.89. (As of 3 p.m. Tuesday. Source: First American Bank of New York.) 24-HOUR TELEPHONE INFORMATION: USA TODAY Money Hot Line. 95 cents a minute. 1-900-555-5555. Personal Investing editor: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution purposes violates federal law. 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