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 Mon, Sep 28 1992 Date: Mon, 28 Sep 92 04:52:55 EDT Message-ID: 09-28 0000 DECISIONLINE: Personal Investing USA TODAY Update Sept. 28, 1992 Source: USA TODAY:Gannett National Information Network PHARMACEUTICAL STOCKS PLUNGE: An announcement by Democratic presidential candidate Bill Clinton that he would limit drug prices and medical costs sent pharmaceutical stocks plunging Friday. Particularly hard hit were companies that offer outpatient treatment and home-infusion therapy. Many analysts maintain that the rout, which caused a drop in the overall market, was overdone. FIVE KEY REPORTS DUE THIS WEEK: This could be the most important week between now and the Nov. 3 election for voters who believe the economy is the campaign's crucial issue. Five major economic reports are due this week. And it's unlikely there will be much good news in them. Potentially hottest are Friday's reports, the last pre-election reports on unemployment. It will be "just awful," says one economist. SLUGGISH MARKET FRUSTRATES: Institutional investors are growing increasingly frustrated by the stock market, according to Bloomberg Business News. The Dow Jones industrial average has been stuck in a 200-point range for nine months now. The sluggishness in the stock market stems directly from concerns about the weak economy, fund managers said. Investors are still waiting for signs of an economic recovery. MEDICAL CARE SHARES DROP: Medical Care America Inc.'s shares lost more than half their value Friday after investors were told their growth stock was a no-growth-at-all stock. The shares dropped 33 points to $25 from Thursday's close. The sharp decline was sparked by Medical Care's announcement that it expects no growth in third quarter earnings. Analysts had predicted that Medical Care was a strong growth stock. GROUP SELLS SHARES: A group led by New York money manager George Soros cut its stake in Perkin-Elmer Corp. to 8.1% from about 10% by selling shares worth about $21 million. The group sold the 641,000 shares at $33.75 to $35.58 a share. It now holds 2.774 million shares of the Norwal, Conn., electronic company. Company shares recently traded at $33, unchanged. SHAREHOLDER SUES CELLCOR: A shareholder has sued Cellcor Inc., a Boston-based biotechnology company, claiming a March 1992 public offering prospectus misled investors about the effectiveness of a kidney cancer treatment. William Glosser, owner of 200 shares, filed the suit in Delaware Chancery Court last week. Cellcor stock dropped over 40% on Aug. 5 because of a failed joint marketing program. ATLAS' LEASE HELPS STOCKS: Atlas Corp.'s decision to lease gold sites in Oregon and Idaho to Newmont Mining Corp. may have salvaged the company's financial budget. But analysts can't decide where the company is worth investors' money. Atlas shares have risen 4 7:8 since the deal. Company officials said Atlas now can pay off a $14 million revolving credit line to Bank of America that comes due Sept. 30. COMPAQ HEADS TO JAPAN: Compaq Computer plans to introduce low-cost computers in Japan, a move that could shake up the high-price Japanese computer market. The Associated Press says Compaq will announce plans Thursday to market its low-price Prolinea models in Japan, the same line that sparked the computer-price war in the USA. Compaq's cheapest model will cost half as much as low-end Japanese computers. BOOK VALUE RELATES TO STOCK: Financial experts say that book value as it relates to stock analysis refers to a company's assets minus liabilities, divided by the number of shares of common stock. Think of it as a way to determine what the company, not the stock, is worth. If a company's stock is trading below its book value, some investors would say the stock is undervalued. DOW DOWN 76 POINTS FOR WEEK: The Dow Jones industrial average slid 37.55 points to 3250.32 Friday, dragging the Dow down 76.73 points for the week. The yield on 30-year Treasury bonds tumbled to 7.36% from 7.41%. The discount rate on three-month T-bills plunged to 2.80% from 2.89%. The dollar closed lower against most major currencies. On the N.Y. Merc.: Platinum fell $1.50 to $372.20 an ounce. GOLD UP; SILVER MIXED: Gold prices rose slightly Friday. On the New York Commodity Exchange, current gold bullion settled at $349.30 a troy ounce, up 10 cents from Thursday. Republic National Bank of New York quoted $349.30 a troy ounce, up 20 cents. Silver bullion rose in London to $3.82 a troy ounce, up from $3.81 bid Thursday. On the Comex, current silver bullion was at $3.79 a troy ounce, down from $3.814. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens at 3250.32 Monday after closing down 37.55 Friday. The New York Stock Exchange composite opens at 227.73, down 2.25. The American Stock Exchange market value opens at 378.49, down 2.45. The NASDAQ OTC composite opens at 577.20, down 8.73. 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. 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