Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!tamsun.tamu.edu!mtecv2!americast.com!americast.com!usa-post From: usa-post@AmeriCast.Com Newsgroups: usa-today.invest,americast.usa-today.invest Subject: invest Wed, Aug 26 1992 Message-ID: Date: 26 Aug 92 08:21:15 GMT Organization: American Cybercasting Lines: 115 Approved: usa-post@AmeriCast.com 08-26 0000 DECISIONLINE: Personal Investing USA TODAY Update Aug. 26, 1992 Source: USA TODAY:Gannett National Information Network SOME BIG STOCKS SHAKEN: Hundreds of stocks, many of them household names, have shared the same fate as Sears, 31% below its 1987 peak of $59 1:2. Five years ago today, the Dow Jones industrial average began peeling back from its Aug. 25, 1987-record 2722. The big crash came two months later. The Dow has regained everything it lost, but one in five stocks has not, including Kodak, IBM, CBS and Xerox. BE PATIENT, SELECTIVE: The list of big-name stocks that have never regained pre-1987 crash peaks - including Travelers, Maytag, Marriott and Caterpillar - raises serious questions about how to choose stocks. Big names and market leaders are no guarantee; being a long-term investor won't necessarily help, either. The key, experts say, is to be selective and patient. BANK STOCKS BACK OFF: Bank stocks are retreating in the face of the dollar's free fall. Since Friday, an index of 24 big bank stocks tracked by Keefe, Bruyette & Woods has fallen 90 points (4%) to 2114 Tuesday. The index is down 9% from its 2312 peak July 2. Analysts blame this week's bank sell-off largely on the dollar's woes. During the day Tuesday, the dollar hit a post-World War II low vs. Germany's mark. FED CAN'T CUT RATES: The sinking dollar would hurt bank stocks because it may keep the Federal Reserve from pushing short-term interest rates any lower. Banks have feasted the past year on steadily lower short-term rates, cutting the rates they pay savers faster than the rates they charge borrowers and pocketing fat profits. Now the Fed is trying to stop investors from dumping dollars but can't cut rates. LANCZ EATS UP FRISCH'S: The Lancz Letter recommends stock in Frisch's Restaurants, which operates 168 restaurants under names including Big Boy and Hardee's. FRS is coming off the first of what should be several years of strong earnings growth, the newsletter says. FRS is benefiting from new restaurant designs that increase customer traffic and a renewed focus on customer service, Lancz says. ILLEGAL MINING SHAKES DE BEERS: Illegal mining of diamonds in Angola is causing an oversupply and unsettling De Beers, the South African-based mining giant. De Beers' American shares, which traded on NASDAQ in November for nearly $30, closed Tuesday at $14 1:8. Mining analyst Roger Chaplin predicts the stock could lose another 30% in the next year. Garimpeiros, or wildcat diggers, are stripping the diamond beds. SEIBELS STOCK NEARLY HALVED: Stock in Seibels Bruce Group plunged by nearly half Tuesday after Lincoln National blocked a planned takeover of the South Carolina insurer. It closed at $3, down 2 5:8. Lincoln National was down 1:4 at $62 3:4. A takeover by Lincoln National would have given property insurer Seibels Bruce a much-needed capital infusion. GABELLI GROUP UPS ELJER STAKE: A group led by New York financier Mario Gabelli Tuesday increased its stake in Eljer Industries to 14.14% from 13.08% by acquiring shares worth about $675,000, Bloomberg Business News said. The group's increase included purchases between Aug. 18 and Aug. 20 at $9.25 to $9.50 a share, according to a statement filed with the Securities and Exchange Commission. IBM LEADS STOCK CLIMB: Stocks rose slightly Tuesday as IBM led technology stocks higher. The Dow Jones industrial average rose 4.05 points to 3232.22. Broader indexes were mixed. Winners trailed losers 719 to 1,002 on the New York Stock Exchange, where volume was moderate at 203 million shares. Bad economic news hurt stocks early in the day. Also: Consumer confidence sank in August to a five-month low. GOLD DOWN, SILVER FALLS: Gold prices fell worldwide Tuesday. On the New York Commodity Exchange, gold bullion for current delivery settled at $340.60 a troy ounce, down $1 from Monday. Republic National Bank said gold fell to a late bid price of $340.50 an ounce, off $1.10. On New York's Comex, silver bullion for current delivery settled at $3.70 a troy ounce, down from $3.712 on Monday. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Wednesday at 3232.22 after closing up 4.05 Tuesday. The New York Stock Exchange composite opens at 226.47, up 0.13. The American Stock Exchange market value opens at 379.52, down 1.38. The NASDAQ OTC composite opens at 554.22, down 1.17. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mostly down on Wednesday. It opens at 0.5025 British pounds, up from 0.5023; 4.7725 French francs, down from 4.8225; 1.3988 German marks, down from 1.4040; and 124.66 Japanese yen, down from 124.79. (As of 3 p.m. Tuesday. 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: 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