Path: bloom-picayune.mit.edu!enterpoop.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, Sep 11 1992 Date: Fri, 11 Sep 92 04:33:18 EDT Message-ID: Lines: 127 09-11 0000 DECISIONLINE: Personal Investing USA TODAY Update Sept. 11-13, 1992 Source: USA TODAY:Gannett National Information Network AUTHOR'S ADVICE IS QUESTIONED: Some investors are calling into question the advice of Charles J. Givens, best-selling financial author. Helen Giszczak, a retired secretary, said Thursday she lost $53,800 - half her life savings - the past few years by investing with a broker-dealer in which Givens was once an owner. She bought four limited partnerships, including an oil and gas deal now in Chapter 11 bankruptcy. (For more, see special Givens package below.) STOCKS SOAR ON OPTIMISM: Stocks soared Thursday on optimism over potential tax cuts. Bearishness has become common among investors, prompting some analysts to say such widespread pessimism must be wrong. Only 14% of investors polled last week were bulls. Don Hays, analyst at Wheat First Butcher & Singer thinks the Dow will be 3500 or 3600 by November and 4100 by August. GILLETTE BUYS PARKER: Gillette, best-known for making razor blades and Right Guard deodorant, is expanding its line of stationery products. It has agreed to buy Parker Pens Holdings for $561 million. Wall Street was lukewarm to the acquisition. Gillette stock dipped 1 3:4 Thursday morning, then recovered some to finish down 3:8 at $57. One possible concern is debt. SOME ANALYSTS LIKE MOVE: Gillette will finance the Wednesday acquisition of Parker Pens Holdings by borrowing about $360 million and siphoning off $200 million cash that would otherwise be used to pay down debt, says analyst Patrick McCormack of Dean Witter Reynolds. McCormack says he sees no problem because Gillette's current debt burden is moderate. Of every $100 of the company's capital, $48 is borrowed. AIRLINE STOCKS JUMP: Airline stocks continued to rise Thursday in anticipation of domestic-fare increases set for Friday. Most U.S. airlines will increase fares between $10 and $50 on domestic routes. News that TWA will end flights to 12 cities also pushed the stocks up. TWA cutbacks will no doubt open routes for other carriers. But insiders doubt these factors will return the airlines to profitability. BUSH PLAN PLEASES INVESTORS: President Bush's plan to revitalize the economy heartened stock investors Thursday. The Dow climbed 34 points in response to his speech which emphasized tax cuts, reduced spending, free trade and job training. Little in Bush's speech was new, analysts say. But they think the program will help his chances in the election, which is good news for traders who usually support the incumbent. TRADING SUGGESTS BIG VOLUME: Analysts were encouraged by the active stock trading Thursday, which suggests that the rally was powered by broad-based buying. "The kind of volume necessary to extend a rally is surfacing," says Greg Nie of Kemper Securities. Some analysts say the market is likely to be whiplashed as the presidential campaign rolls to its conclusion. Others say exports will spur a rally. GOLD, SILVER MIXED: Gold prices were mixed Thursday. On the New York Commodity Exchange, gold bullion for current delivery settled at $342.20, unchanged. Republic National Bank quoted at price of $341.60, down from $342.00. Silver bullion in London was steady at a late bid price of $3.74 a troy ounce. On the Comex, silver bullion for current delivery settled at $3.701 a troy ounce, down from $3.709. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens at 3305.16 Friday after closing up 33.77 Thursday. The New York Stock Exchange composite opens at 230.78, up 1.68. The American Stock Exchange market value opens at 384.87, up 1.99. The NASDAQ OTC composite opens at 581.24, up 6.35. DOLLAR OPENS UP OVERSEAS: The dollar opens up on Friday. It opens at 0.5075 British pounds, up from 0.5053; 4.8205 French francs, up from 4.8055; 1.4150 German marks, up from 1.4063; and 123.10 Japanese yen, up from 122.92. (As of 3 p.m. Thursday. Source: First American Bank of New York.) SPECIAL PACKAGE ON GIVENS: INVESTOR FILES FOR HEARING: Helen Giszczak said Thursday that her lawyer has filed for an arbitration hearing before the National Association of Securities Dealers. Parties accused of mishandling her funds include financial advisor and author Charles J. Givens and Delta first financial, a broker-dealer partly owned by Givens. "I trusted Givens, and he gave me heartaches," says Giszczak, who lost half of her savings. DELTA LED HER ASTRAY: Giszczak's "big mistake," as she put it: Investing $78,200 in the four limited partnerships. She was persuaded by several Delta people to take money out of her Merrill Lynch cash-management and individual retirement accounts and invest in limited partnerships. As any pro knows, those are about the worst investments for a senior citizen who has limited capital and needs safety and income. GISZCZAK WANTS THE WORD OUT: Whether Giszczak gets her money back is anyone's guess. One thing she wishes she could do: Go on a TV show that has praised Givens - such as "Oprah!" - to present the other side. "I want people to know the truth," she says, "that this is a financial adviser you should only recommend to your worst enemy." (End of package.) 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