Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!tamsun.tamu.edu!mtecv2!americast.com!americast.com!usa-post From: usa-post@AmeriCast.Com Newsgroups: usa-today.invest,americast.usa-today.invest Subject: invest Tue, Sep 1 1992 Message-ID: Date: 1 Sep 92 08:40:11 GMT Organization: American Cybercasting Lines: 116 Approved: usa-post@AmeriCast.com 09-01 0000 DECISIONLINE: Personal Investing USA TODAY Update Sept. 1, 1992 Source: USA TODAY:Gannett National Information Network ANDREW MAY BOOST SOME STOCKS: The effort to put together what Hurricane Andrew ripped apart might blow a few stocks skyward, but it's not likely to make investors rich soon. Jim Solloway, strategist at Argus Research, said Monday that Andrew wouldn't change investing trends and is nothing to invest on. Still, stocks of some companies that would logically benefit from rebuilding efforts jumped last week. (For more, see special Andrew package below). AMEX ALLOWS MORE TO TRADE LESS: The American Stock Exchange said Monday it will allow stocks with prices under $5 a share to trade in increments of 1:16 of a dollar instead of 1:8. The move is an attempt to increase business. The change will take effect Wednesday and will allow 370 stocks to trade that way, up from 100. The current cutoff price for trading in 1:16s is $1 per share. AUTO STOCKS JUMP: An unexpectedly strong showing by automaker stocks was not enough to keep stocks from slipping Monday. Both GM and Ford gained 1 point, while Chrysler rose 5:8. The Dow Jones industrial average fell 10.26 points to 3257.35. Broader indexes also declined. Falling stocks edged out gainers, 885 to 855, on the New York Stock exchange, where volume was moderate at 161 million shares. ENERGY, ANDREW DOMINATE AUGUST: Energy, Hurricane Andrew and a weak economy just about sum up August for stocks. Oil and gas stocks continue to energize portfolios. Stocks in those groups had been helped by a rise in natural-gas prices since March. They got a kick last week when Andrew tore through Florida and Louisiana. Another strong hurricane-related group was manufactured-housing companies. RECESSION WORRIES TRADERS: Economic worries can be blamed for many stock groups'drops last month. Auto, heavy-duty truck,machinery, machine-tools, steel, aluminum and home-building companies could see earnings remain in the dumps if the economy continues to stumble through the fall. The transportation stock group also could suffer. Recession-resistant groups like soft-drink, food and tobacco stocks have benefited. PENNY-STOCK KING SENTENCED: Convicted penny-stock king Meyer Blinder was sentenced to 46 months in prison and fined $100,000 for his role in a stock scam. Blinder, 70, calmly accepted the sentence in court Monday, unlike earlier this summer, when he threatened to kill a federal prosecutor. Blinder had faced up to 60 years in prison. In the 1980s, Blinder's firm was one of the largest selling penny stocks. GOLD, SILVER UP: Gold prices rose Monday in limited trading. Gold bullion for current delivery settled at $342.70 a troy ounce on the New York Commodity Exchange, up $2.80 from Friday. Republic National Bank said gold added $2.45 an ounce to a late bid price of $342.20. On New York's Comex, silver bullion for current delivery settled at $3.730 a troy ounce, up from $3.674 on Friday. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens at 3257.35 Tuesday after closing down 10.26 Monday. The New York Stock Exchange composite opens at 228.03, down 0.40. The American Stock Exchange market value opens at 380.78, down 0.40. The NASDAQ OTC composite opens at 563.12, down 0.44. DOLLAR OPENS DOWN OVERSEAS: The dollar opens down on Tuesday. It opens at 0.5023 British pounds, down from 0.5045; 4.7765 French francs, down from 4.7965; 1.4010 German marks, down from 1.4068; and 123.01 Japanese yen, down from 123.31. (As of 3 p.m. Monday. Source: First American Bank of New York.) SPECIAL PACKAGE ON ANDREW: GAINS WON'T LAST LONG: Analysts don't expect lasting gains in stocks of businesses that may benefit from Hurricane Andrew, but some have been boosted. Stock of Dycom Industries of West Palm Beach, Fla., which builds electricalstations and service buildings, has fared well since Andrew. Roof shingle maker Elcor and home manufacturer Fleetwood Enterprises have climbed in the market since Andrew. BUILDING STOCKS STAGNATE: Miami-based Lennar, the largest home builder in the state, has barely moved. Ditto Greensboro, N.C.-based Oakwood Homes. Atlanta-based home products chain Home Depot ended the week up only slightly, even though it expects a lasting boom - up to four years - from Andrew-inspired sales at its 25 stores in south Florida and Louisiana. INSURANCE STOCKS MAY CLIMB: For the most part, analysts say expected business from the rebuilding effort shouldn't be the only reason to buy a stock. But there are always exceptions. Shearson Lehman Brothers believes some insurance company stocks are attractive, even though some will have to pay billions in claims. They believe the claims from damage will lead to higher premiums, giving some companies a boost. (End of package.) Personal Investing Editor: Martin Baucom. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. 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