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 Mon, Sep 14 1992 Date: Mon, 14 Sep 92 04:32:03 EDT Message-ID: 09-14 0000 DECISIONLINE: Personal Investing USA TODAY Update Sept. 14, 1992 Source: USA TODAY:Gannett National Information Network FIDELITY STEPS UP PURCHASES: Fidelity Investments, the $180 billion mutual-fund giant, reportedly has been on the sidelines in recent weeks. But analysts said Sunday it's stepping up its stock purchases. One area of interest: Energy. Recent purchases are said to include Schlumberger, Halliburton, Unocal and Chevron. It's also said to have snapped up a number of paper stocks. ANALYST SEES BAD TIMES AHEAD: George Reagan, who runs the Teacher Retirement System of Texas, said Sunday he thinks stocks are fully priced right now. He expects slow, agonizing earnings growth the next several years. Reagan thinks huge debt will limit spending at all levels. He also cites few fiscal options: The government can't cut spending or raise taxes because that would throw the USA into a recession. EARNINGS WON'T HELP: George Reagan of the Teacher Retirement System of Texas said Sunday that even good earnings comparisons over the next several quarters won't help the stock market. Reagan thinks earnings will gain, but that the earnings are already reflected in the market. He also believes the market could plunge after the election. ADOBE'S STOCKS SINK: Earnings fears and threat of competition from Microsoft are playing havoc with shares of Adobe Systems, a onetime Wall Street darling and maker of computer-systems software. Analysts said Sunday that such worries could create even more chaos despite the stock's collapse of more than 50% from its high this year. The stock hit a year low Friday of $31 1:2 from its high of $68 1:2. ADOBE TO REPORT EARNINGS: Adobe Systems, maker of computer-systems software will report its earnings Tuesday for the fiscal third quarter, which ended Aug. 31. It advised analysts to lower its numbers, and some estimates peg per-share earnings at 40 cents to 50 cents, vs. 55 cents a year earlier. More importantly, some bears see earnings of about $2.25 a share in the current fiscal year and only $2 next year. GAINES PUSHES OIL STOCK: A low-priced oil stock is being pushed by Alan Gaines of Gaines, Berland, a small institutionally oriented New York brokerage specializing in energy stocks. Gaines said Sunday that American International Petroleum, an oil-exploration company, could jump to $5 or $6 a share, from a current $2 1:2, if it gets lucky with its reported 160 million-barrel discovery in Colombia. RUMORS ON SHEARSON LEHMAN FLY: Analyst Dan Dorfman reported Monday that talk is popping up again of a possible public offering of Shearson Lehman Bros. by parent American Express. This possibility would tend to squash recurring speculation of a buyout of the brokerage by Primerica, which owns Smith Barney. MONEY MARKETS BORROW AND LEND: Last week's average rate on money-market accounts was 2.94% vs. 2.96% for money market mutual funds. Money market is a collective term for the different ways the government, banks, corporations and securities dealers borrow and lend money for short periods. A money-market mutual fund pools investors' money to buy those short-term money-market securities and passes the interest to investors. NEWSLETTERS ARE HELPFUL: In searching for help with first-time stock offerings, brokers should help in tracking down promising offerings. For those who go it alone, a handful of newsletters report on companies that issue stock to the public for the first time. Analysts reached Sunday suggest New Issues and Emerging and Special Situations. Both include a calendar of offerings and reports on performance. LEXINGTON HOLDS FUNDS: The Strategic group of mutual funds was taken over in December by the Lexington Group of Investment Companies. Lexington is at Park 80 West, Plaza Two, Saddle Brook, N.J., 07662. Investors in the Strategic investment funds should now have money in the Lexington Strategic fund. GOLD, SILVER DROP: Gold and silver prices fell worldwide Friday. On the Commodity Exchange, gold bullion for current delivery ended at $340.90, down $1.30. Republic National Bank put gold at $340.90, off 70 cents. Gold traded in London at $340.55, down from $342.30. On the Comex, silver bullion for current delivery settled at $3.679, down from $3.701. Silver traded in London at $3.69, down from $3.74. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens at 3305.70 Monday after closing up 0.54 Friday. The New York Stock Exchange composite opens at 230.80, up 0.02. The American Stock Exchange market value opens at 386.45, up 1.64. The NASDAQ OTC composite opens at 583.01, up 1.77. 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