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 Fri, Sep 18 1992 Date: Fri, 18 Sep 92 04:43:57 EDT Message-ID: 09-18 0000 DECISIONLINE: Personal Investing USA TODAY Update Sept. 18-20, 1992 Source: USA TODAY:Gannett National Information Network MONTGOMERY ADVICE IS BULLISH: A year ago, with the Dow at 3024, powerhouse West Coast brokerage Montgomery Securities made a big stock pitch to the country's most influential money managers asking them to buy. With the Dow having sprinted almost 10%, or nearly 300 points, since then, Montgomery is looking pretty good - even though a lot of stocks have been laggards. Their present advice: More of the same. (For more, see special Montgomery package below.) U.S. INVESTORS KEEP QUIET: U.S. investors stayed on the sidelines Thursday, waiting to see what's next in Europe's continuing money madness. "People are hunkering down here," says Jim Solloway, strategist at Argus Research. He thinks a vote for the Maastricht treaty would increase chances for monetary unification, which could lead to economically stronger Europe. A stronger Europe could buy more U.S. exports. DEPOSITORY RECEIPTS LOOK GOOD: Roiling world financial markets have shaken many European stocks traded in the USA. For hardy investors, some analysts say there could be great opportunities in the disarray. American depository receipts of European companies, the way to invest in European companies on U.S. stock exchanges, have been volatile. Some analysts say now's the chance that shouldn't be missed. PUBLISHER GIVES TIPS: John Dessaur, publisher of Dessaur's Journal of Financial Markets, thinks there are a range of American depository receipts of European companies that could pay off well for U.S. investors. Among them: Spanish electric utility Endesa, British telecommunications firm Cable & wireless, Dutch electronics giant Phillips and Norwegian fertilizer maker Norsk Hydro. RALSTON STOCK FADES: Once upon a time, the stock of Ralston Purinawas a pretty steady performer - rising about 11% a year from 1986 through 1990. But since early last year, the trend has been lower. Thursday, Ralston plunged 5 3:8 to $43 3:4 - its lowest close since June and a 27% decline since the stock peaked at $60 in April 1991. And analysts are slashing their per-share estimates. INVESTOR LIKES GENERAL DYNAMICS: Omaha investor Warren Buffett is growing more fond of the management team at defense contractor General Dynamics every day. Last month, he increased his stake in the company to 15%. Thursday, he gave the company voting power over all his shares. General Dynamics shares hit another 52-week high, rising 1 7:8 to $81 1:8. CHANGES COULD HELP INVESTORS: The spate of currency changes in Europe is good news for U.S. investors, analysts say. Until now, European governments have been limited in their ability to stimulate their economies because their currencies are linked in a set of currency pacts called the European Monetary System. But Britain and Italy have temporarily left the system and Germany's rate cut is spurring other economies. GOLD, SILVER DOWN: Gold and silver prices declined Thursday. At the Commodity Exchange in New York, current gold cost $347.90 an ounce, down $1.90. Republic National Bank of New York had the spot price at $347.75, off $1.45. Silver traded in London at a bid of $3.80 a troy ounce, down from $3.83. On the Commodity Exchange in New York, silver for current delivery fetched $3.766, down from $3.821. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens at 3315.70 Friday after closing down 3.51 Thursday. The New York Stock Exchange composite opens at 230.97, down 0.10. The American Stock Exchange market value opens at 385.16, down 0.36. The NASDAQ OTC composite opens at 587.82, up 1.93. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mostly down on Friday. It opens at 0.562 British pounds, up from 0.559; 5.083 French francs, down from 5.174; 1.485 German marks, down from 1.520; and 124.5 Japanese yen, down from 125.3. (As of 3 p.m. Thursday. Source: First American Bank of New York.) SPECIAL PACKAGE ON MONTGOMERY: CONVENTION WILL SELL BULL: Montgomery Securities' institutional research boss John Skeen says investors are still in a bull market. In fact, that's what the hard-sell brokerage will pitch to money managers at its 22nd annual convention which starts Sunday. And it'll do so despite a slumping U.S. economy, turmoil in European economies and currencies and big uncertainty as to how pros will react to the presidential election. COMPANIES TO SELL THEMSELVES: Some 725 top money managers from the USA and overseas will attend the Montgomery event. The big feature: Talks by top officials of 165 companies. Their pitch: To entice big guns to buy their stocks. With the market as volatile as it is and the buying power on hand, Skeen believes a fair number of stocks could easily shoot up or down based on what the companies have to say. RESEARCHER BETS ON GROWTH: Skeen's best market plays: Belt-tightening companies, low-end home builders, specialty retailers that are killers in their category and some midprice restaurant chains. Kreen believes in growth companies which will prosper in low inflation. He focuses on companies geared to saving people and companies money, like HealthCare COMPARE, Circuit City Stores and Spaghetti Warehouse. (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