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 Fri, Oct 16 1992 Date: Fri, 16 Oct 92 08:02:01 EDT Message-ID: 10-16 0000 DECISIONLINE: Personal Investing USA TODAY Update Oct. 16-18, 1992 Source: USA TODAY:Gannett National Information Network COMMUNICATION RULES EASED: The Securities and Exchange Commission Thursday passed rules allowing shareholders to communicate with more than 10 other shareholders without getting written permission. The new rule also lifts limitations on spoken shareholder communications unless the shareholders own more than a $5 million stake in the company. They must mail the text of their talk to the SEC in three days. SEC ADOPTS EXEC PAY RULES: The Securities and Exchange Commission Thursday adopted rules requiring clearer explanations of how much top corporate executives get paid. Companies will have to include charts in their proxy statements detailing all compensation executives get over three years. Companies also have to disclose the compensation of their chief executives and the four highest-paid execs over $100,000. ASSOCIATION EXPELS FIVE FIRMS: The National Association of Securities Dealers Inc. Thursday said it expelled five firms for not paying fines and costs for securities violations. They were: Baring & Brown Inc.; Dow, Owen & Co.; New Century Securities Inc.; RCL Northwest Inc.; and Texas Independent Securities Inc. The NASD suspended Windsor IBC Inc. and registered principal Mary Martin for unfairly pricing common stock. EARNINGS SURPRISE ANALYSTS: Not only are third-quarter earnings better than expected in corporate America, but the Christmas quarter's profit gains are also apt to be higher than most think. A major cloud over the market - widespread fears of crummy earnings - appears to be slowly dissipating. And that could heat up stocks. Almost half the companies beat Wall Street's estimates, many by hefty margins. MCALINDEN IS A BULL: Joseph McAlinden is the bullish chief investment officer of Dillon Read. His outlook: The Dow (3175 Thursday) should trade around its record, 3411, before year's end and balloon to 3700 the first half. His best bets: beneficiaries of a stronger economy; stocks he feels can throw off gains of 25% by June 30: Ford, Whirlpool, Centex, Liz Claiborne, Wal-Mart and Bombay Co. GOODRICH LOOKS LIKE A WINNER: Several analysts surveyed Thursday came up with next year's biggest earnings gains and declines from this year. To be eligible, earnings estimates of at least 50 cents a share are required for both years. Goodrich is pegged as the biggest gainer with an estimate of 50 cents a share this year and $2.16 in '93. Salomon leads losers with estimates of $5.22 this year and $3.93 in '93. PHILIP MORRIS SLIPS: Philip Morris got slammed when it reported earnings of 1.3 billion up 18% from a year earlier. It would be robust for most big companies, but Wall Street analysts have been spoiled by Philip's success. The news prompted several analysts to slice 1992-93 earnings estimates and cut buy ratings. Morgan Stanley's Kurt Feuerman also cut estimates but kept a buy rating. IBM COULD BE IN TROUBLE: IBM stunned Wall Street Thursday by reporting earnings that, despite estimate cuts by analysts in recent weeks, were far below expectations. Now analysts are seriously questioning the company's ability to maintain its dividend at $4.84 a share a year. A solid economic recovery would boost demand for computers and likely give the stock a lift. But such a recovery could be years away. TRIO CAN'T BETTER BOESKY: A former IBM executive, his son and son's college roommate thought they could out-Boesky Ivan Boesky. They couldn't. The government charged the three with profiting in stock trades through the use of non-public information obtained through a former paralegal at takeover law firm Skadden, Arps, Slate, Meagher and Flom. The three are said to have studied Boesky's slipups. APPLE REPORTS RECORD EARNINGS: Apple Computer reported record earnings its latest quarter, boosted by strong sales of its PowerBook notebook computers and international market growth. for the quarter ended Sept. 25, net income jumped 20% to $98 million or 81 cents a share a year from $81 million or 67 cents a share a year earlier. Apple will announce more new products in the next six months than in any previous year. GM COULD LOSE ITS RATING: GM could lose its A-minus debt rating if it doesn't turn around its money-losing operations, debt-rating agency Standard & Poor's says. S&P says that if there is no clear sign of a turnaround in GM's core auto operations, GM's rating could be lowered by mid-1993. A ratings cut would raise GM's borrowing costs. GOLD FALLS, SILVER MIXED: Gold prices fell Thursday. On the New York Commodity Exchange, gold bullion settled at $341.00 a troy ounce, off $1.80 from Wednesday. Republic National Bank said gold fell $1.75 an ounce to $341.00. On New York's Comex, silver bullion fell to $3.685 a troy ounce, down from $3.688 on Wednesday. Silver bullion rose in London to $3.73 a troy ounce, from $3.71 bid late Wednesday. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens at 3174.68 Friday after closing down 20.80 Thursday. The New York Stock Exchange composite opens at 225.54, up 0.15. The American Stock Exchange market value opens at 365.63, down 0.54. The NASDAQ OTC composite opens at 578.64, up 2.42. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mostly down on Friday. It opens at 0.5898 British pounds, up from 0.5870; 4.9330 French francs, down from 4.9640; 1.4525 German marks, down from 1.4635; and 120.25 Japanese yen, down from 121.18. (As of 3 p.m. Thursday. 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: 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