Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.invest,americast.usa-today.invest From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: invest Tue, Sep 8 1992 Date: Tue, 8 Sep 92 04:30:16 EDT Message-ID: 09-08 0000 DECISIONLINE: Personal Investing USA TODAY Update Sept. 8, 1992 Source: USA TODAY:Gannett National Information Network INVESTORS WATCH ELECTION: Presidential elections no doubt can affect the stock market. Tom Gallagher, political analyst at Shearson Lehman Bros., said Monday that a victory by Bill Clinton would make investors aware of policy. Pollution-control companies and engineering companies would fare well with Clinton, while insurers, cable companies and big exporters would benefit from George Bush's reelection. (For more, see special Election package below.) STARBUCKS' SHARES CLIMB: Since Starbucks, the Seattle coffee company, went public June 26, its share price has climbed almost 70% to $28 3:4. The public offering raised $28 million. Shareholders are enthusiastic and President Howard Schultz said Monday he hopes to accomplish great things by spreading his chain across the USA. Starbucks' 60 espresso stands and coffeehouses are the blueprint for expansion. COFFEE COULD BE A HOT STOCK: Starbucks and other coffeehouses that saturate Seattle have made coffee more than a wake-up cup. With the popularity of java on the rise, analysts say the time is ripe for a company devoted to coffee aficionados. Starbucks' planned expansion is a hot tip, Seattle -area analysts said Monday. The higher-priced, higher-quality coffee such as Starbucks now constitute a larger part of the market. FONTAINE SEES MARKET CRASH: A lot of money managers see a modest selloff in stocks - say 5% or so - given the election and economic uncertainties. But market grizzly Richard fontaine of Fontaine & Associates says it will be much worse. "We're in for a crash; there's no escaping it," he says. That crash he's talking about - a 25% to 35% decline in the next six months - would send the Dow down between 2130 and 2460. S&P INDEX SPELLS TROUBLE: Richard Fontaine, of Fontaine & Associates has extremely dour predictions for the stock market in the coming months. He said Monday that he is alarmed by huge stock valuations, which as measured by Standard & Poors 400-stock index, sells at three times its book value. That's higher than the 2.8 times book value of the index before the '87 crash and 2.7 valuation before the '29 crash. WYATT LIKES ENERGY STOCKS: Oscar Wyatt, chairman of natural gas pipeline giant Coastal, apparently is gung-ho on prospects of a number of energy companies. Analysts said Monday that Wyatt bought shares in oil-service companies McDermott International and Baker Hughes and producer Pogo Producing. Wyatt is excited about possible energy spending by Russia and tax incentives for energy exploration in the USA. INSIDER LIKES GAP: Milton Petrie, CEO of Petrie Stores, the women's specialty retailer, has bought 1 million to 1.5 million shares of Gap, the big clothing chain, analysts said Monday. Gap has 144 million shares outstanding, of which the controlling Fisher family owns 37%. DOLLAR WON'T SEE PULLOUT: Global investors won't begin a widespread attempt to pull out of dollar-dominated investments even though moves by the German Bundesbank have caused it to tumble, presidential aide Richard Darman said Friday. Darman is the director of the Office of Management and Budget. He said the United States still has the world's leading economy. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens at 3281.93 Tuesday after closing down 10.27 Friday. Markets were closed for Labor Day Monday. The New York Stock Exchange composite opens at 229.75, down 0.37. The American Stock Exchange market value opens at 384.85, down 0.25. The NASDAQ OTC composite opens at 573.44, down 1.44. SPECIAL PACKAGE ON ELECTION: ELECTION BRINGS MIXED ADVICE: Conventional wisdom on Wall Street says the best news for the stock market would be a George Bush victory in the presidential election. But some say investors shouldn't worry about where Bush stands in the latest polls. "It doesn't matter who wins the election," Charles LaLoggia said Monday. LaLoggia, editor of Special Situation says either man will have to make tough calls. S&P WILL RISE AFTER ELECTION: Hugh Johnson, investment strategist at brokerage First Albany, has studied stocks in election years. Monday he said that in 23 election years this century, the stock market as measured by the Standard & Poor's 500 index has risen an average 9% each time. The 13 times a Republican won, the market rose an average 15%. Stocks gained an average 3% in 10 Democratic victory years. NO CANDIDATE WILL SOLVE ALL: John McGinley, editor of Technical Trends newsletter said Monday that a George Bush victory in the presidential election could help stocks. Investors dislike uncertainty and nobody is sure what Clinton would do as president. Regardless who wins, McGinley warns investors shouldn't look for more than a short-term pop in stock prices. (End of package.) 24-HOUR TELEPHONE INFORMATION: USA TODAY Money Hot Line. 95 cents a minute. 1-900-555-5555. Personal Investing editor: Martin Baucom. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution purposes 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. For more information, send-email to usa@AmeriCast.COM