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 9 1992 Date: Wed, 9 Sep 92 04:29:47 EDT Message-ID: 09-09 0000 DECISIONLINE: Personal Investing USA TODAY Update Sept. 9, 1992 Source: USA TODAY:Gannett National Information Network BULLS GIVE UP ON SUMMER RALLY: Many bulls are giving up hopes for a summer rally as the season winds down. September and October are traditionally weak months for stocks, Robert Robbins, strategist at Robinson-Humphrey said Tuesday. One reason: Investors begin selling stocks that have fallen to take losses for tax purposes. Since January, the Dow has stayed in the 3200-to-3400 range. GM LOOKS UNSTEADY: General Motors' strike-ending concessions have autoworkers back on the job and assembly lines back in action. They also have investors on Wall Street a little concerned. While investors normally would cheer the resumption of auto production, the focus instead was on the potential to GM's ongoing restructuring. GM stock dropped 1 1:8 to $34 Tuesday as three plants restarted. CONCESSIONS TO AFFECT INDUSTRY: John Casesa, analyst at Wertheim Schroder, says that General Motors' strike-ending concessions could scare off investors. "People feel that if GM's ability to restructure is constrained, it will affect the entire industry," Casesa says. He thinks others could be forced to offer rebates on cars. He says that may explain Ford's weakness: Shares dropped 1 1:8 to $39 7:8 Tuesday. BERGEN BUYS DRUG COMPANY: Bergen Brunswig, a drug-distribution company based in Orange, Calif., said Tuesday that it will pay $460 million, or $33 a share, in cash to buy fellow drug distributor Durr-Fillauer Medical. Merrill Lynch says deals in 1992's first half are up 44% from the first half of 1992. Analysts say the trend will continue: Keep an eye on automotive suppliers, banks and media companies. MERGERS MAY BE A TREND: Companies have spent $44.5 billion in mergers in 1992, but most analysts think this is anything but a replay of the wheeling-dealing 1980's. The action now is in deals for small to midsize companies. Driving the trend: Companies are looking for ways to increase market share without having to start new departments. Also, high stock prices have made stock swaps an easy way to merge. GENERAL MILLS IS A STEADY BUY: General Mills has had great success and analysts believe it will be a great steady buy - though not a quick jumper. The past 10 years, the stock has soared 549%, compared to the 240% gain of the Standard & Poor's 500 index. Michael Mauboussin, analyst at First Boston, said Tuesday that he anticipates annual growth of 14% to 15% at least until 2000. ANALYSTS PRAISE GENERAL MILLS: Stock analysts Tuesday credited General Mills management's cost-cutting moves and aggressive marketing for putting the company and its stock ahead of many rivals. Michael Mauboussin of First Boston rates the stock a hold mainly because he thinks that at 23 times earnings per share the past 12 months, it's expensive. He cites new products and expansion via joint ventures as good signs. MERCK GOES GENERIC: Pharmaceutical giant Merck is hoping to stem an anticipated revenue loss by manufacturing a generic version of its Dolobid pain killer, the company said Tuesday. Since patents on brand-name drugs expire after 15 years, generic-drug companies flood the market with equivalents that cost up to 35% less. Analysts see this as no reason for worry or glee: It's common practice in the industry. DOW, DOLLAR DOWN: The Dow Jones industrial average declined 21.34 points to 3,260.59. The NASDAQ composite index lost 2.27 points to close at 571.17. The dollar ended at 1.3945 marks, down from 1.4015 marks but still above the record low Sept. 1 of 1.3860 marks. On the New York Mercantile Exchange, platinum rose $3.40 to $361.70. GOLD UP, SILVER MIXED: On the New York Commodity Exchange, gold bullion for current delivery settled at $342.50, up $1.20 from $341.30 Friday. Later, Republic National Bank quoted at price of $342.10, up 85 cents from Friday. The markets were closed Monday for Labor Day. On the Comex, silver bullion for current delivery settled at $3.711, up from $3.703. Silver traded in London at $3.73, unchanged. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens at 3260.59 Wednesday after closing down 21.34 Tuesday. The New York Stock Exchange composite opens at 228.37, down 1.37. The American Stock Exchange market value opens at 383.36, down 1.49. The NASDAQ OTC composite opens at 571.17, down 2.27. DOLLAR OPENS DOWN OVERSEAS: The dollar opens down on Wedneday. It opens at 0.4986 British pounds, down from 0.5011; 4.7405 French francs, down from 4.5011; 1.3922 German marks, down from 1.4015; and 122.75 Japanese yen, down from 123.09. (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: 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