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 Tue, Nov 10 1992 Date: Tue, 10 Nov 92 05:07:26 EST Message-ID: 11-10 0000 DECISIONLINE: Personal Investing USA TODAY Update Nov. 10, 1992 Source: USA TODAY:Gannett National Information Network GAME STOCKS LOOK HOT: A back-to-basics Christmas may be brewing, but thanks to a price war between Sega and Nintendo, plenty of kids will wake up to computer game systems this holiday. That's good for companies that make games played on the systems. "This Christmas will be fantastic for them," says Bob Kleiber, analyst at Piper Jaffray. The only problem: Stocks may not have much room to rise. (For more, see special Game package below.) EC WANTS TALKS TO RESUME: The 12 European Community foreign ministers agreed Monday that talks with the USA on farm subsidies should resume immediately to head off the risk of a transatlantic trade war. But the ministers also agreed the EC should retaliate if the USA carries out its threat to slap 200% tariffs on white wine and other EC imports Dec. 5, German Economics Minister Juergen Moellemann told reporters. GOVERNMENT TO SELL BONDS: The government Tuesday and Thursday will sell investors a pile of 10-year notes and 30-year bonds in a market that has been weak since Labor Day. The weak market probably means big investors will be shy about buying. The upshot is that long-term interest rates, which are set by the bond market and have been rising, may go higher still. BUY MUNICIPAL BONDS: Financial planners may soon offer a bit of post-election advice: President-elect Clinton is raising taxes, so buy municipal bonds. They are exempt from federal income tax and from state tax in most states where the bonds are issued. In a survey of securities brokers, 56% say taxes are going up; 73% say they will recommend municipal bonds to their clients. FORD TO PICK NEW CEO: Ford directors, meeting Thursday, may decide who will run the USA's second-largest automaker after CEO Harold Poling retires. Poling, 67, has said he will retire next year but hasn't set a date. Analysts say Alexander Trotman, 59, Ford's executive vice president of North American operations, is the favorite to succeed Poling. CREDIT CARDS STOCKS STILL HOT: Even with competition heating up and rates lower than ever, the credit card business can still be very good, according to Al Lerner, chief executive officer of MBNA. MBNA is the USA's third-largest issuer of MasterCard and Visa Cards. Last month, Lerner bought 500,000 shares of MBNA, his first purchase in nearly two years. SEC SUSPENDS TRADING: The Securities and Exchange Commission Monday temporarily suspended trading in Members Service Corp. shares. Trading was suspended because of questions over the adequacy and accuracy of publicly disseminated securities and how the company sold or distributed the securities. The company's chairman said the company had not done anything wrong. FOUR DEALERS ARE DISCIPLINED: The National Association of Securities Dealers Inc. Monday took disciplinary steps against four firms: Wakefield Financial Corp., Kelly Trading Corp., Bagley Securities Inc. and Royce Park Investments Inc. Wakefield and Kelly for scheming to alter trading in Weaver Arms Corp.; Bagley for trading in Quantus Capital Inc.; and Royce for trading dominance in an offering of LBO Capital Corp. STOLEN STOCKS DECREASE: The Securities and Exchange Commission said Monday the amount of stocks reported to its lost and stolen securities program decreased by 10% in 1991, according to Bloomberg Business News. The aggregate dollar value of certificates reported as lost, stolen, missing or counterfeit totaled $2.331 million in 1991, down from 1990's $2.6 million. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens at 3240.87 Tuesday after closing up 0.81 Monday. The New York Stock Exchange composite opens at 230.634, up 0.54. The American Stock Exchange market value opens at 385.36, up 2.10. The NASDAQ OTC composite opens at 622.05, up 5.23. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mixed on Tuesday. It opens at 0.6612 British pounds, up from 0.6538; 5.3935 French francs, down from 5.3960; 1.5963 German marks, down from 1.5967; and 124.10 Japanese yen, up from 123.43. (As of 3 p.m. Monday. Source: First American Bank of New York.) SPECIAL PACKAGE ON GAME: INVESTORS BET ON GAME STOCKS: Earlier this year, investors bet big on some of computer game stocks. Electronic Arts, creator of games like Desert Strike and John Madden Football, surged. So did Acclaim Entertainment, creator of games based on Wrestlemania, "The Simpsons" and Marvel comics. The question is whether they're now too expensive. Some of the stocks already have retreated a bit from this year's highs. STOCKS STILL ARE HIGH: But they're still trading at high price-earnings multiples. Electronic Arts sells at 27 times expected 1993 earnings per share. Acclaim Entertainment trades at 19 times 1993 earnings. By contrast, the Standard & Poor's 500 trades at 16 times 1993 earnings estimates. But if earnings gains aren't great, the stocks could be hit hard. ANALYST SAYS DEMAND WILL SURGE: Analyst John Taylor says demand for games is likely to surge as people snap up more of the latest systems. By the end of the year, 13 million systems will be installed in the USA, says Scott Smith, analyst at Donaldson Lufkin & Jenrette. That's up 333% from 3 million last year. Compact-disc systems are also going to be a hit. One company analysts like: Electro Brain, a tiny company. (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