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 Mon, Nov 2 1992 Date: Mon, 2 Nov 92 04:47:35 EST Message-ID: Lines: 119 11-02 0000 DECISIONLINE: Personal Investing USA TODAY Update Nov. 2, 1992 Source: USA TODAY:Gannett National Information Network GM BOARD MEETS MONDAY: General Motors' board of directors meets Monday in New York, atop a mountain of nearly impossible expectations. No matter what the board does to revive money-losing GM, some will see it as too little or too late. "The expectation level may be getting out of hand," says Salomon Brothers analyst Jack Kirnan. Kirnan says probable changes will hurt the stock because people want more. BOARD MAY CUT DIVIDEND: In addition to naming new executives Monday, analysts expect the board of General Motors to cut the quarterly 40-cent stock dividend by up to 75%. That would save GM close to $1 billion a year without scaring big investors. Other moves might wait until after the election Tuesday. Analysts foresee: Doubling of planned job cuts; firing old-guard executives; and giving big investors more say. SHAMES LIKES STOCK MARKET: Many big stock players are increasing their cash reserves. Not so Jeff Shames. In fact, he's got money to burn - about $200 million. And he plans to spend it all on stocks the next six weeks or so. Shames runs the $10 billion stock portfolio of Boston-based mutual fund giant Massachusetts Financial Services. He is betting big bucks a year-end rally is on the way, but not a huge one. (For more, see special Shames package below.) ROBERTSON HEADS FOR HOLLYWOOD: A battle could be shaping up for British broadcasting company TVS Entertainment PLC. Conservative evangelist Pat Robertson's International Family Entertainment is set to close a $68.5 million deal for the parent of MTM Productions in January. The potential rival: Unidentified New York entertainment company backed by TCW Capital, affiliate of Los Angeles money-management giant Trust Co. FDIC SEIZES TEXAS BANK: First City Bancorporation, which owns 20 Texas banks hurt by bad loans, was declared insolvent Friday. Regulators say First City is the largest bank failure this year and the eighth largest ever. Sen. Don Riegle, D-Mich., says the failure is the second time the bank has been bailed out. In 1988, the Federal Deposit Insurance Corp. gave First City $977 million to protect depositor money. CONSUMER CONFIDENCE LESSENS: Consumer confidence weakened in October, according to a survey by the University of Michigan. The university's consumer-sentiment index slid to 73.3 from 75.6 in October. The index's base is 100, set in 1966. Analysts say consumers are uncertain about the outcome of Tuesday's election. LANGONE BETS ON HIS BUDDY: Ken Langone, Ross Perot's longtime Wall Street buddy, says the Texan will "squeak out a win" in Tuesday's election. Langone heads Invemed Associates, a New York brokerage and investment banking firm. Langone told USA TODAY Sunday that he's never seen Perot so optimistic. He believes people will get in the booth, realize their disenchantment and pull the lever for Perot. GOLD DOWN, SILVER DOWN: In Friday trading on the New York Commodity Exchange, gold bullion for current delivery settled at $339.40 a troy ounce, off 10 cents from Thursday. Republic National Bank said gold slipped 50 cents an ounce to a late bid price of $339.50. On New York's Comex, silver bullion for current delivery settled at $3.751 a troy ounce, down slightly from $3.752 on Thursday. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens at 3226.28 Monday after closing down 19.99 Friday. The New York Stock Exchange composite opens at 230.57, down 0.85. The American Stock Exchange market value opens at 381.29, up 2.29. The NASDAQ OTC composite opens at 605.17, down 0.65. SPECIAL PACKAGE ON SHAMES: CONFIDENCE SHOULD IMPROVE: Jeff Shames of Massachusetts Financial Services has a rosy market outlook: A modest gain of 5% or so that will drive the Dow Jones industrials to about 3400 by year-end. Then on to another gain to 3600 to 3700 by mid-'93. Shames' reasoning: The election will be over and confidence will improve; the economy is growing - although very slowly; and the German central bank will ease credit. MID-SIZED BANKS MAY GAIN: Mid-sized regional banks are among his top stock picks. Pegged as 25% gainers over the next 12 months: National City (Cleveland), Key, U.S. Bancorp and Bay Banks. Even bigger 12-month stock gains, about 30% are projected for key players in the fast-growing computer-software industry. Shames likes Microsoft, Autodesk, Oracle Systems and Systems Software. FOOD COMPANIES MAY LOSE: Other favorites from economic recovery: Phelps Dodge, Deere, Monsanto and Willamette Industries. On the other hand, Shames is shunning food and beverage companies he rates vulnerable to sharply slowing earnings growth. He says many will be without pricing power because of low inflation. The names: Coca-Cola, Gerber Products, Borden, Kellogg and Anheuser-Busch. (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