Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.invest From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: invest Mon, Mar 16 1992 Date: Mon, 16 Mar 92 05:48:19 EST Message-ID: 03-16 0000 DECISIONLINE: Personal Investing USA TODAY Update March 16, 1992 Source: USA TODAY:Gannett National Information Network PACE OF IPOS SCARES ANALYSTS: The pace of initial public offerings is making some analysts nervous. This year, 113 companies have sold stock for the first time, raising $6.6 billion, according to newsletter IPO Reporter. This time last year, there were 22 IPOs, raising $1.9 billion. Analysts say that while the while the quality offerings starts out high it invariably deteriorates. (For more, see special IPOs package below.) STOCKS UP ON GOOD NEWS: Stock prices rose Friday after a new government report showed wholesale prices rose only 0.2% last month. The Dow Jones average of 30 industrials closed up 27.28 to 3,235.91. For the week, the index gained 14.31 points in volatile trading. Winners beat losers 996 to 669 on the New York Stock Exchange. The NYSE's composite index rose 0.51 for the week to close at 224.30. SOMETIMES FUNDS LOSE: Although the USA's 1,250 stock funds are up an average 303% the past 10 years, the flip side of that growth is volatility. Strong long-term gains can often mask bad years. Indeed, a computer search conducted by mutual-fund tracker Morningstar for USA TODAY shows that only 16 stock funds haven't had a losing year in the past 10. One, Beacon Hill Mutual Fund, hasn't had a down year in 17 years. PRINTING MONEY PAYS: U.S. Banknote, a top printer of security documents, is exciting investors. Shares of U.S. Banknote, a merger of three companies that came public in a unit offering in 1990 with the stock at about $2 a share, recently hit a record $7 1:8. Friday's close: $6 5:8, down 1:4. CEO Morris Weissman says this year's operating earnings should be 50 cents to 60 cents a share, up from 26 cents last year. ECONOMISTS SAY RECESSION OVER: A batch of rosy economic reports released last week - on top of good news a week earlier - has economists saying the recession is over. "The recovery is finally here," says economist Bruce Steinberg of Merrill Lynch Global Securities. Among evidence: Retail sales were strong the past two months; wholesale prices remained under control last month, rising just 0.2%. AMEX NAMES 21 TO NEW LISTING: The American Stock Exchange on Friday named 21 companies lured from the over-the-counter market to trade on its new Emerging Company Marketplace, which is scheduled to start Wednesday. Firms in the new market have lower financial standards than now needed to qualify for the Amex. Amex bills it as a forum for growing companies to gain exposure and raise capital. FORMER EXEC SALES MOST OF STAKE: The former head of Salomon's Phibro Energy unit traded out of most of his holdings in the investment-banking and bond-trading firm last month. Ernst Weil, who retired as Phibro chairman last year, sold 93% of his stock in Salomon the last week of February. He sold 261,685 shares for an average $31.12, or $8.1 million. That left Weil 18,876 shares, worth $547,404 at $29 Friday. GOLD FALLS FURTHER: Gold futures fell slightly Friday in dull trading on New York's Commodity Exchange and lengthened Thursday's substantial losses. Spot gold closed on the Comex at $346.70, off 70 cents. The New York Republic National Bank set a price at 4 p.m. of $346.75, off 35 cents. Gold fell in London and Zurich. Silver turned higher. March silver rose 1.3 cents to $4.099 a troy ounce. SPECIAL PACKAGE ON IPOS OFFERINGS CLOSE TO LINE: Hugh Johnson of First Albany says a bull market is supposed to attract IPOs, allowing good companies to sell stock amid rising prices and free-spending investors. "The growing number of offerings is clearly a sign that speculation is rising," says Johnson. "Have we gone too far? We're very close to that line." NOT ALL WORRIED: Not everyone is worried, though. Bob Mescal, analyst for New Issues newsletter, says he sees signs that investors are paying more than they should, but not enough to frighten him. "As a percentage of new issues, the number of dogs is no greater than last year," says Mescal. "You're seeing more dogs today because there are more issues overall.' ' FRENZY MAY CAUSE PROBLEM: If buyers start acting like sharks in a feeding frenzy, "we might want to chat again after this quarter," Mescal says. That's typical behavior for the late stages of a bull market, says Johnson. "When the urge to speculate takes hold, people let their guard down. You can get away with it for a while, but sooner or later, it comes back to bite you," says Johnson. (End of package.) DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Monday at 3235.91, after closing up 27.28 points Friday. The New York Stock Exchange composite opens at 224.30, up 1.00. The American Stock Exchange market value opens at 404.06, up 0.47. The NASDAQ OTC composite opens at 618.62, up 2.70. 24-HOUR TELEPHONE INFORMATION: USA TODAY Money Hot Line. 95 cents a minute. 1-900-555-5555. Personal Investing Editor: William Snoddy. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution 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