Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.invest From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: invest Mon, Jul 13 1992 Date: Mon, 13 Jul 92 05:08:08 EDT Message-ID: 07-13 0000 DECISIONLINE: Personal Investing USA TODAY Update July 13, 1992 Source: USA TODAY:Gannett National Information Network ANALYST LIKES CALLAWAY: Analyst John Weiss of Montgomery Securities says golf club maker Callaway Golf is an investment hole in one. The brokerage sent a report to clients over the weekend. Callaway stock teed off in a public offering in February at $20, ran up to $36 and closed Friday at $21 3:8, up 3:8. It jumped on sales of the Big Bertha driver and fell on fears that surging competition could kill growth. GROWTH NO CAUSE FOR CONCERN: Investors skeptical of Callaway Golf are "confusing rapid growth with saturation," says analyst John Weiss. "Callaway is on the fast track." He notes that a national check of sporting-goods stores on driver Big Bertha shows that consumer demand is many times its availability. He sees Callaway reporting a strong second quarter, 55 cents a share, up from 26 cents a year earlier. LINCOLN FOUR TO PAY $2.1 BILLION: A federal jury has ordered former Lincoln Savings and Loan chairman Charles Keating and three co-defendants to pay $2.1 billion in damages for swindling thousands of elderly investors. In the class-action suit, Keating and his co-defendants were found guilty of selling to more than 20,000 investors junk bonds that they claimed were government-insured. SHAKY STOCKS A GOOD BET: Small-stock tracker Binkley Shorts says he's found three beaten-up stocks that can outperform the market. He says Merisel, Abbey Healthcare Group and Filene's Basement - all off more than 20% from their 52-week highs - could rack up 12-month price gains of 85% to 95%. "The heavy bloodletting in smaller stocks is leading to great buying opportunities," Shorts says. ILN INJUNCTION UPHELD: A federal appeals court Friday upheld an injunction freezing the assets of International Loan Network Inc., a firm the government alleges deceived thousands of investors. The Securities and Exchange Commission alleged that ILN promised investors large returns if they invested in real estate or memberships in the company. The SEC sued the company and two top executives in 1991. TAKEOVER TALK STIRS STOCK: Takeover rumors are appearing over Sysco, the nation's leading distributor of food and related products to the away-from-home food-service industry. The stock hit a 52-week high of $26 1:8 Friday and closed at $25 5:8, up 3:4. GOLD, SILVER MIXED: On the Commodity Exchange, gold bullion for current delivery fell 40 cents to close at $348.30 Friday. Republic National Bank quoted gold down 30 cents at $348. Gold rose in London to $348.25, up from $347.75. Silver bullion rose in London to $3.94 from $3.91 and on the Comex, silver settled at $3.920, down from $3.926. SOME FUNDS HAVE NO MINIMUMS: Low-income investors interested in investments without a minimum balance may want to try mutual funds. A few have low or no minimums. Twentieth Century has no minimum, but it has a $10 annual fee on accounts below $1,000 (800-345-2021). Also, some funds have low-minimum monthly investment programs. Janus Growth & Income Fund lowers its $1,000 minimum to $50 in some cases. (800-525-3713). RECOVERY COULD BE WEAK: Chances of the economy slipping back into recession are low, say 77% of economists responding to a USA TODAY:CNBC economic survey conducted July 2-7. But doubts about the strength of the recovery are mounting. A USA TODAY:CNBC survey a week earlier showed that 89% of economists believed the odds of another recession were low. Between the two surveys: Rate cuts; and joblessness jumped to 7.8%. RATES ON ARMS DIVE: The average rate on 30-year fixed-rate loans has fallen from about 8.5% to 8.1% in the past two weeks. Meanwhile, rates on ARMs have nosedived. The average rate last week was 5.56% down from 5.69% the previous week. The low rates translate to huge savings over fixed-rate loans. KRANZCO REALTY FILES IPO: Kranzco Realty Trust Friday filed with the Securities and Exchange Commission to sell 5.5 million common shares in its initial public offering. The new Maryland real estate investment trust plans to raise about $116 million. Smith Barney, Harris Upham; Oppenheimer; PaineWebber and Legg Mason Wood Walker will underwrite the sale at an expected $20 to $22 a share. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Monday at 3330.56 after closing up 6.48 Friday. The New York Stock Exchange composite opens at 227.88, up .33. The American Stock Exchange market value opens at 382.32, up .48. The NASDAQ OTC composite opens at 567.80, up 0.54. 24-HOUR TELEPHONE INFORMATION: USA TODAY Money Hot Line. 95 cents a minute. 1-900-555-5555. Personal Investing editor: Beth Mann. (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