Path: bloom-picayune.mit.edu!snorkelwacker.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, Oct 26 1992 Date: Mon, 26 Oct 92 04:43:26 EST Message-ID: 10-26 0000 DECISIONLINE: Personal Investing USA TODAY Update Oct. 26, 1992 Source: USA TODAY:Gannett National Information Network BUY SAVINGS BONDS: Savers have been buying Savings Bonds at a fevered pace for a year.But they'd be wise to buy more before the end of this week. Next Monday, the Treasury Dept. will adjust the semiannual market-based interest rate on bonds. That rate is sure to drop, because interest rates in general have fallen since the rate was last adjusted May 1. The yield is sure to be a generous one. AT&T LOOKS AT MCCAW: Telecommunications analyst Ken Leon of Bear Stearns says he places some credence in rumors of an AT&T major investment in cellular phone giant McCaw - on the order of $2 billion. Leon sees a strong likelihood of an alliance in six to 12 months. Reasons: Cellular is the fastest growing segment of telecommunications and AT&T could minimize the risk of McCaw as a major rival. MCCAW IS A GREAT BUY: Analysts say McCaw, the cellular phone giant, is a great buy. McCaw is attracting investment interest from AT&T and possibly others. Some insiders think the stock could gain about 35% to more than $30 in 12 months. Key reasons: Expansion of the cellular market; sharply rising cash flow; revenue growth of 30%-plus a year; and a possible profit in 1994 after years of losses. DISK DRIVE STOCKS LOOK ROUGH: Analyst Barry Bosak of Smith Barney says disk drive stocks are a bad buy. One reason: Widespread fears of fatter disk-drive price cuts. Personal computer makers are being whacked by heavy industry price cutting. Bosak also thinks excessive supplies of PCs are bound to curtail disk-drive demand. Major disk-drive players: Seagate Technology, Quantum, Conner Peripherals and Maxtor. SEC CURIOUS ABOUT CANDIDATES: The Securities and Exchange Commission is asking questions about the effect of each presidential candidate on health-care companies looking to sell stock to the public for the first time. All three candidates are pushing lower health costs. And the SEC wants public-bound companies to say whether lower reimbursements from insurers will hurt revenue and earnings. CBOT BANS LEE B. STERN & CO.: The Chicago Board of Trade has banned Lee B. Stern & Co. from trading and suspended memberships of the firm's three main owners following more than $1 billion in questionable trades Thursday that shook up the Treasury bond market. Thursday, a floor broker whose trades were guaranteed by Stern & Co., initiated a series of huge trades in 30-year bond options and futures. KEATING HAS TO PAY $1 BILLION: Charles Keating Jr. and two co-defendants must pay $1 billion to thousands of investors who claim they were cheated by Keating's Lincoln Savings, the judge in their federal civil fraud trial has ruled. The final damage figure was announced after federal district judge Richard Bilby calculated the effect on a jury award of federal racketeering statutes calling for triple damages. KEATING ALSO MUST PAY $750M: Federal district judge Richard Bilby has ordered Charles Keating Jr. and two co-defendants to pay $1 billion to investors who say they were cheated by Lincoln Savings. Keating also was ordered to pay plaintiffs another $750 million in punitive damages. The judgment came in a pair of class-action civil lawsuits by investors who lost money investments sold by Lincoln Savings and Loan. SEQUOIA CONTINUES TO SUFFER: Sequoia Systems Inc.'s announcement that it would restate its results for the latest financial year is only one of several self-inflicted blows to the troubled company that has lost three top executives. The Securities and Exchange Commission is investigating its accounting practices. Also, the company has violated a $15 million revolving loan agreement with Bank of Boston. BUSH MAY GET NICE COMPENSATION: If President Bush loses to Bill Clinton in the election, he'll be saddled with a hefty pension. Bush will get $143,800 a year, or 72% of his annual $200,000 annual salary, says Pensions & Investments magazine. His pension is tied to the pay rate of his Cabinet officers. Bush raised their pay last year. CITICORP STILL BIGGEST: Citicorp is still the USA's largest banking company, according to third-quarter asset figures. Citicorp ended the quarter with $223 billion in assets, well ahead of No. 2 BankAmerica, which had $187 billion in assets. But analysts say Citicorp's rivals are making acquisitions aggressively and it's likely they will eventually pass Citicorp. Rivals include NationsBank. GOLD RISES, SILVER FALLS: Gold prices rose Friday. On the New York Commodity Exchange, gold bullion for current delivery settled at $343.60 a troy ounce, up 50 cents from late Thursday. Republic National Bank said gold rose 80 cents to a late bid price of $343.20. On New York's Comex, silver bullion settled at $3.769 a troy ounce, down from $3.781. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens at 3207.64 Monday after closing up 6.76 Friday. The New York Stock Exchange composite opens at 227.83, down 0.27. The American Stock Exchange market value opens at 374.24, down 0.27. The NASDAQ OTC composite opens at 597.30, up 0.18. 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