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 Fri, Mar 27 1992 Date: Fri, 27 Mar 92 05:43:21 EST Message-ID: 03-27 0000 DECISIONLINE: Personal Investing USA TODAY Update March 27-29, 1992 Source: USA TODAY:Gannett National Information Network WARNING ON ENERGY STOCKS ISSUED: Top energy analyst Alan Gaines says the energy sector - a poor performer last year - won't do very well this year. "The outlook is horrible. I'd sell virtually every energy stock," he says. So his advice - very timely now since many brokerage firms are pushing a slew of supposedly cheap energy stocks: "Don't get sucked in. Many are still on the skids." (For more, see special Energy package below.) STOCKS FINISH MIXED: Stocks were mixed in dull trading Thursday as traders awaited next week's end to the first quarter. The Dow Jones industrial average rose 8.28 points to 3267.67. Losing stocks edged winners 842 to 765 on the New York Stock Exchange, where volume was 177 million shares. Traders say investors have retreated to the sidelines until after the second quarter starts Wednesday. SALOMON IN THE SOUP AGAIN: An error made while executing a customer's program order has Salomon Bros., disgraced last summer in a Treasury-bond scandal, mired in a new controversy. A last-minute, computer-driven program trade Wednesday erased a 14-point gain in the Dow Jones industrial average and knocked the index to a loss of 1.57 points for the day. The New York Stock Exchange is reviewing the trade. SALOMON SHARES SLIP: Wednesday's trading error at Salomon Bros. was enormous. Word on Wall Street was that a clerk punched in an order to sell 11 million shares of stock - instead of $11 million worth of shares, as had been requested. The 11 million shares were worth several hundred million dollars. Salomon said the trade is "not material" to the firm. Thursday, Salomon's stock slipped 5:8 to $27 5:8. ANALYSTS GIVE PROFIT OUTLOOK: U.S. corporate profits fell 4.5% last year to $188 billion, the third straight annual drop, the Commerce Department says. Earnings fell 4.6% in 1990 and 1.9% in 1989. Profits rose 0.4% in last year's fourth quarter, well below the third quarter's 3.8% rise. Analysts say the improving economy will lift earnings this year, but investors shouldn't expect a big jump in profits. REVLON MAY HAVE OFFERING: Revlon Chief Ronald Perelman plans to sell 15% to 18% of the cosmetics giant in an initial public offering, BusinessWeek magazine says in its April 6 issue, out Monday. BusinessWeek says Perelman plans to make the Revlon offering in about two months. It said the offering would raise $400 million to $600 million, much of which would go toward debt reduction. FOREIGNERS CAN BUY NTT SHARES: Japan plans to lift a ban on foreigners owning stock in communications giant Nippon Telephone and Telegraph. Officials expect Japan's cabinet to approve letting foreigners own up to 20% of Japan's largest company. Analysts say NTT needs foreign investors. In addition to the recent declines in the general stock market in Tokyo, NTT's shares have been hurt by a bribery scandal. GOLD PULLS BACK: Gold prices pulled back on precious metals markets Thursday while silver prices posted mixed results. A troy ounce of gold closed at $341.00 on the Commodity Exchange, down 10 cents. Republic National Bank quoted gold at $340.50, off 50 cents. Gold fell in London and Zurich. Silver on the Comex was quoted at $4.089 a troy ounce, up slightly from $4.084. The metal fell in London. SPECIAL PACKAGE ON ENERGY: GAINES ON HOT STREAK: Analyst Alan Gaines' predictions for the energy sector range from earnings declines and heavy losses to dividend cuts and bankruptcy. Gaines has been on a hot streak with his forecasts. He predicted the filing for Chapter 11 bankruptcy-court protection of Columbia Gas; the dividend cuts at Panhandle, Tenneco and Pacific Enterprises; and stock drops at Transco Energy, Arkla and Sonat. OKC IS GAINES' FAVORITE: Gaines' chart lists his "good, bad and ugly" of energy, plus 12-month targets. His good guys: OKC, Amerada Hess and Union Texas Petroleum - that have rising production. His Pennzoil pitch assumes a major restructuring at some point. He rates Texaco "a fine widows-and-orphans stock." It yields 5.6%. His No. 1 energy stock: OKC. Gaines sees it doubling from Thursday's close of $13 5:8. (End of package.) DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Friday at 3267.67, after closing up 8.28 Thursday. The New York Stock Exchange composite opens at 225.49, up 0.10. The American Stock Exchange market value opens at 398.86, down 1.43. The NASDAQ OTC composite opens at 615.40, down 4.08. DOLLAR OPENS UP: The dollar opens up on foreign markets Friday. It opens at 0.5804 British pounds, up from 0.5780; 5.6125 French francs, up from 5.6060; 134.01 Japanese yen, up from 133.37; and 1.6620 German marks, up from 1.6528. (As of 3 p.m. Thursday. 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: 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