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 Thu, Oct 8 1992 Date: Thu, 8 Oct 92 04:25:12 EDT Message-ID: 10-08 0000 DECISIONLINE: Personal Investing USA TODAY Update Oct. 8, 1992 Source: USA TODAY:Gannett National Information Network INVESTORS KEEP SELLING BONDS: Investors continued to sell bonds Wednesday, pushing yields higher, on growing fears that interest rates may have hit bottom. Short-term and long-term Treasury securities dropped in value. The discount rate on three-month Treasury bills jumped to 2.81% from 2.73% Tuesday. The yield on 30-year Treasury bonds rose to 7.48% from 7.41% Tuesday and 7.34% Monday. INVESTORS LOOK TO ELECTION: Pessimism in the bond market eventually spilled into stocks Wednesday. The Dow Jones industrial average fell 25.94 points to 3152.25 -its lowest close of the year. Among the reasons for the sell-off in 30-year bonds: Investors increasingly believe that whoever wins the presidential race will try to boost the economy by increasing government spending and will have to issue more bonds. WALL STREET CALM OVER STRIKE: Wall Street doesn't seem too worried about the strike against USAir by machinists. But analysts say that could change if the strike - now in its fourth day - goes on for two weeks or more. USAir Group stock fell 1:4 Wednesday to $11 5:8, down from its prestrike close Friday of $12. Most analysts expect the strike to be short because neither side can afford a long holdout. LONERS MAY BE SELLING SHORT: Individual investors appear to be betting big on a stock-market decline. The number of shares sold short, a bet on falling prices, is at record levels on both the New York Stock Exchange and NASDAQ system. However, professional short sellers have been inactive. SHORT-SELLING COULD CAUSE RALLY: While it's impossible to judge who is doing all the short selling taking place on the NYSE and NASDAQ, "I would speculate the individual is part of it," says Harry Strunk, whose Palm Beach, Fla., research firm tracks 19 big-name short sellers. If he's right, a lot of people may be in for disappointment. Large short-selling by individuals is a tonic for a rally. WALL STREET TURNS GRIZZLY: Investment advisers have turned decidedly gloomy about the stock market. According to a weekly survey by Investors Intelligence, the number of professional investors calling themselves bears rose to 40% Wednesday vs. 35% a week ago. Those calling themselves bulls fell from 41% to 37%. That marks the first time since December bears outnumbered bulls. LOOK FOR NEW PRODUCTS: The slow-growth, low-inflation 1990s will be no time to invest in companies that depend on price increases to boost profits. In a September report, Salomon Bros. highlights companies that should show revenue and earnings growth without higher prices. Look for stocks of companies that will introduce new products or win market share from competitors. UAL, Mattel and Apple are examples. TROUBLE ON THE LEFT: Here's hot information for investors planning their investments around the election: No left-handed president has ever been re-elected. George Bush is a southpaw. His lefty predecessors: Jimmy Carter, Gerald Ford, James Garfield. The report, from Donaldson Lufkin Jenrette, notes that markets "have not done well in the year in which the incumbent party has lost." SURGICAL CHIEF LOSES PROFITS: Leon Hirsch's vanishing $122 million is proof that potential profits are just numbers on a page until the holder sells stock and turn it into cash. U.S. Surgical's annual statement showed Hirsch's 1991 compensation included options on 2.75 million shares. But U.S. Surgical shares have dropped 44% since the options were revealed, wiping out Hirsch's profit. NATIONAL STORES TRADING HALTED: The New York Stock Exchange said Wednesday it will immediately suspend trading in common stock for National Convenience Stores Inc. Also suspended: National's convertible preferred stock. National has filed for bankruptcy protection and has fallen below the Big Board's income criterion for continued listing. MERGERS & ACQUISITIONS FALL: The number of cross-border mergers and acquisitions in publishing fell dramatically in the first six months of 1992, according to a study released by KPMG Peat Marwick. The figures analyze cross-border M&A trends in the publishing industry since 1989. In 1989, there were 106 acquisitions worth $5.4 billion. In the first six months this year, there were 23 worth $56 million. ENVIROFIL IS IN DEFAULT: Envirofil Inc. said Wednesday it was in default on its outstanding 10% convertible subordinated ntoes due Sept. 1, 1996. The company failed to make scheduled interest and principal payments. Envirofil said it also is in default on certain other obligations and did not have enough cash to make scheduled debt obligations. INVEST IN UTILITY STOCKS: Plugging into a utility could give your stock portfolio the jolt it needs. As certificate of deposit yields hover at a 29-year low, savers are eager to find an income vehicle that replaces the CD. Some tout utility stocks. Utilities long have been a popular option for conservative investors because they generally offer steady growth and high dividends. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens at 3152.25 Thursday after closing down 25.94 Wednesday. The New York Stock Exchange composite opens at 222.84, down 1.25. The American Stock Exchange market value opens at 366.88, down 0.83. The NASDAQ OTC composite opens at 569.20, down 1.35. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mostly up on Thursday. It opens at 0.5838 British pounds, down from 0.5861; 4.9060 French francs, up from 4.8485; 1.4470 German marks, up from 1.4304; and 120.27 Japanese yen, up from 119.83. (As of 3 p.m. Wednesday. 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