Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.ibd From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: NASDAQ Amex Market Date: Mon, 23 Nov 92 12:15:13 EST Message-ID: <3.1992Nov23.121514@AmeriCast.com> 11/23/92 TITLE NASDAQ Amex Market Nasdaq Index Pushes Toward A Record High Outback Steakhouse Gains 15/8 To Pace Restaurant Stocks Lisa Lee Freeman Another day of frenzied buying Friday carried the Nasdaq market to within striking distance of its all-time high as res- taurant, retail and selected technology and medical issues moved higher. The Nasdaq composite index rose 4.03 points, or 0.63%, to 642.60 - just 2.32 points short of its high. Advances topped declines 9-to-7 as trading dipped 4% to a still-robust 248 mil- lion shares. The NYSE composite index rose 0.66%, while the American Stock Exchange market value index added 0.73% as winners led 11-to-7. In trading, buyers gorged themselves with hamburger and steak restaurant stocks. Highflying Outback Steakhouse Inc., which leaped out of a tight trading range on Thursday, climbed another 15/8 to 273/8. Also, Rally's Inc. rose 13/4 to 201/2, Ap- ple South Inc. 13/8 to 193/8, Hamburger Hamlet Restaurants Inc. 1 to 171/4 and Krystal Co. a point to 24. Among other restaurant operators, Buffets Inc. climbed 2 to 313/4, Vicorp Restaurants Inc. 15/8 to 22 and Au Bon Pain Co. Class A 11/2 to 24. Steven Rockwell, analyst at Alex. Brown & Sons Inc., raised his fourth- quarter estimate on Outback by two cents to 15 cents a share. For the year, his target is now 50 cents a share, or 92% better than a year earlier. Rockwell increased his 1993 estimate by a nickel to 75 cents a share. The restaurant group, which has been par- ticularly strong this week, was well represented earlier this week at an Alex. Brown consumer growth stock seminar, observed Rockwell. He said the conference was well attended and that the restaurants received a lot of attention. "The better companies in the group haven't been affected by the poor economy over the past year," noted Rockwell. "Many have grown despite the sluggish economy and expectations are that the better companies will con- tinue to grow earnings." Recent gains in the group also could be related to the fact that investors are returning to emerging growth stocks, he said. Among other types of retail stocks, Ea- gle Hardware & Garden Inc., which split 3-for-2 last week, tacked on another 2 to 341/4 - a new closing high. The stock has been a powerhouse since its July debut. United Retail Group Inc.- also soared to a new closing high, up 21/8 to 291/4. The com- pany, which sells large-size womens apparel, came public in March at $15 a share. The large-size apparel theme is expected to be a hot one in the 1990s as America not only grays but also puts on a few pounds. Elsewhere in the rag trade, discount retailer Ross Stores Inc. climbed to a seven-month high, up 11/4 to 20. In the hot new issue market, USA Classic Inc., whose 2.7 million shares debuted at $13 apiece, opened at 16 and closed at 151/4. The com- pany is a clothing designer based in New York. Another new is- sue, Amfed Financial Inc.- , climbed 22% from its offering price of $11.50 a share to 14. The Reno, Nev.-based firm offered 4.2 million shares. National Western Life Insurance Co., which broke out of a 14-week base two weeks ago, climbed 31/4 to 421/2 - a new closing high. In the past three quarters, the life insurer's earnings rose 208%, 162% and 90%, respectively. Express Scripts Inc. also jumped to a new closing high, rising 3 to 281/2, but trading was thin. The company provides health-care management services. In the telecommunications field, ACC Corp. rose 2 to 201/4 and LDDS Communications Class A 13/4 to 411/4. Ted Levy, an analyst at Sage, Rutty & Co., said ACC is strengthening in anticipation of a strong initial public offering next week from Call- Net Enterprises Inc. If the offering goes well, it may boost ACC's valuation, as both are long-distance resellers. Long out-of-favor medical instrument stocks showed signs of life. Empi Inc., up 5 during the previous session, added 2 to 35. The company on Thursday said it bought out rival Nor- tech, a division of Medtronic Inc. Also, Circon Corp. rose 13/4 to 23, Idex Laboratories Inc. 11/2 to 301/4 and Stryker Corp. 1 to 34. In other medical trading, Gendex Corp.- rose to a new closing high, up 17/8 to 427/8. The stock has made a ninefold move in the past two years. Gendex is a supplier of medical and dental X-ray systems. Among biotechnology issues, Immunex Corp., which dropped 33/8 on Thursday, recouped 21/4 to 491/2 on positive analysts' comments regarding research data on PIXY321, a drug which promotes white blood cell and platelet growth in patients undergoing chemotherapy. Elsewhere, Petrolite Corp. surged 31/8 to 277/8. The specialty chemical company said late Thursday it expected a 7% increase in fourth-quarter earn- ings. Technology issues, which have been a driving force in the Nasdaq's rally since Oct. 5, were mixed. The networkers continued streaking higher. Wellfleet Communica- tions Inc., ahead 31/2 on Thursday, added 25/8 to 647/8, and Cisco Systems Inc. 2 to 74. Those are both new highs. In software trading, Microsoft Corp., up 4 in the previous two out- ings, added another point to 95, and System Software Inc. 2 to 34. But Borland International Inc. slumped 11/8 to 237/8 in heavy trading. Sybase Inc. dropped 11/4 to 43 and BMC Software Inc. 11/2 to 641/2. Also, Autodesk Inc., after rising sharply ahead of fiscal third-quarter earnings, tumbled 51/8 to 481/2. The earnings came in late Thursday at a slightly better-than-expected 50 cents a share, or 23% less than a year earlier. Analysts' were critical of Autodesk's greater reliance on sales of upgrades and some pressure on the average price of the full version of Au- tocad. Profit- taking also played a role. However, Dean Witter Reynolds Inc. analyst Timothy McCollum said the selling was over- done. He said these negative influences will reverse themselves during the current quarter. He reitereated his buy rating and raised his fiscal 1993 estimate by seven cents to 1.87 a share. Dell Computer Corp., which surged 21/8 Thursday after posting better-than-expected earnings, crumbled 33/4 to 345/8 on uncon- firmed rumors about accounting improprieties. Gencor Industries Inc. slid 55/8 to 107/8 in heavy trading. Late Thursday, the mak- er of machinery used in highway construction reported a third- quarter loss of 61 cents a share, compared with a 45-cent deficit a year earlier. Andrea Electronics Corp. stole the spotlight in Amex trading again, rising 23/4 to 311/8. The stock has gained 203/4 in the past four days. This article is copyright 1992 Investors Business Daily. Redis- tribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM