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 Wed, Sep 30 1992 Date: Wed, 30 Sep 92 04:52:36 EDT Message-ID: 09-30 0000 DECISIONLINE: Personal Investing USA TODAY Update Sept. 30, 1992 Source: USA TODAY:Gannett National Information Network SEARS' MOVE HELPS SHAREHOLDERS: Sears, Roebuck and Co.'s decision to scale down to a retail-only corporation has split opinion on whether Sears will be a star stock. Sears' financial and credit subsidiary has certainly been a strong performer lately. Dean Witter Financial Services has accounted for a rising percentage of Sears' total earnings in recent years. Analysts say Dean Witter is a very solid franchise. (For more, see special Dean package below.) STEAKHOUSE STOCKS SIZZLE: Steakhouse stocks are a hot stock. Longhorn Steaks, Outback Steakhouse and Lone Star Steakhouse & Saloon are up 35% to 340% in a flat '92 market - and up 15% to 30% in the past three weeks alone. Behind investors' appetite: Juicy growth in profits, same-store revenues and number of restaurants. And short sellers are covering their positions by buying the rising shares. RESTAURANT STOCKS SHOULD GROW: Analyst Bryan Elliott of Robinson-Humphrey sees more sizzle for steakhouse stocks ahead. "The economy is dead in the water and restaurant stocks, steakhouses included, are one of the only growth games in town," he says. They're growing from small bases, he says, and dinners are reasonably priced. Elliott pitches Longhorn, which his firm underwrites, and Ryan's Family Steak Houses. SALOMON MAY FACE MORE PROBLEMS: Despite a $290 million settlement with government regulators last May, Salomon Brothers Inc. could still face penalties or charges of tax fraud, Jerome Powell, Treasury undersecretary for finance, said Tuesday. Powell said in written testimony to a House subcommittee that the settlement agreement doesn't preclude potential adjustments to Salomon Brothers' tax liability. CONSUMER CONFIDENCE FALLS: Consumer confidence fell again this month - a third straight decline. The Conference Board said Tuesday that its confidence index hit 56.4, lowest this year. A reading below 100 on the eve of the past five presidential elections has spelled defeat for the incumbent party, says the Conference Board, a business research group. The board's survey is a good predictor of consumer spending. MONEY MANAGER PLEADS GUILTY: Steven Wymer, a money manager charged with bilking clients out of $174 million, agreed Tuesday to plead guilty to federal criminal charges and was ordered to pay about $209 million to settle civil charges, the Securities and Exchange Commission says. Wymer, a southern California financial adviser, managed funds for more than 100 clients, mostly local and government agencies. GOLD, SILVER MIXED: Gold and silver prices varied Tuesday. On the Commodity Exchange, gold for current delivery ended at $348.20, up 40 cents. Republic National Bank quoted a price of $348.50, up 65 cents. Gold fell in London to $347.45 from $348.00. Silver bullion dropped slightly in London to $3.73 from $3.74. On the Comex, silver was quoted at $3.762, up from $3.74. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens at 3266.80 Wednesday after closing down 9.46 Tuesday. The New York Stock Exchange composite opens at 228.90, up 0.20. The American Stock Exchange market value opens at 375.61, down 1.64. The NASDAQ OTC composite opens at 577.63, up 2.29. DOLLAR OPENS DOWN OVERSEAS: The dollar opens mostly down on Wednesday. It opens at 0.5621 British pounds, down from 0.5789; 4.8200 French francs, down from 4.8940; 1.4125 German marks, down from 1.4518; and 119.37 Japanese yen, down from 119.77. (As of 3 p.m. Monday. Source: First American Bank of New York.) SPECIAL PACKAGE ON DEAN: DEAN WITTER GOES PUBLIC: The biggest winners in Sears' sell-off of its non-retail subsidiaries are current Sears stockholders. Tuesday, Sears said it will turn Dean Witter into a separate company and give 80% of it to its stock holders. The remaining 20% will go public. But it's too early to tell if Dean Witter will do well when it goes public. Analysts say the company's businesses will stay strong this year. EARNINGS SHOULD CONTINUE: Analysts expect earnings of around $400 million for Sears, its fourth record-earnings year in a row. But on Wall Street, after two strong years, "things are slowing down a bit," says David Hilder, analyst at first Boston. And the stocks of major brokerages that compete with Dean Witter are all near this year's lows. But the long-term outlook for retail stock brokerage industry looks strong. DISCOVER CARD CARRIES WEIGHT: Dean Witter's future will depend a lot on its Discover card business. After a rocky start, the card is now solidly profitable. In 1990, Discover accounted for roughly 50% of Dean Witter's income. So far this year, it has accounted for 56%. But analysts say the business has some problems to grapple with soon. One other big plus for Dean Witter is its sound management. (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