Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.invest From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: invest Tue, Jun 9 1992 Date: Tue, 9 Jun 92 05:19:54 EDT Message-ID: 06-09 0000 DECISIONLINE: Personal Investing USA TODAY Update June 9, 1992 Source: USA TODAY:Gannett National Information Network GD ANNOUNCES STOCK BUYBACK: General Dynamics stock jumped 5 5:8 to $71 Monday after the USA's No. 2 defense contractor said that it will buy back up to $975 million in stock. General Dynamics says it will buy back 13 million shares - about 30% of its outstanding stock - for $65 3:8 to $75 each. The buyback marks the company's latest move to adjust to shrinking U.S. defense spending. DUTCH AUCTION TO BE USED: General Dynamics' stock buyback announced Monday will be conducted in what's known as a Dutch auction. Interested shareholders say what price they would accept within the $65 3:8 to $75 a share range the company says it will pay for the stock. If General Dynamics can buy the shares for $65 3:8 each, the buyback will cost $850 million. PAPER BETTER THAN TANGIBLES: Paper investments such as bonds, stocks and Treasury bills outperformed tangible assets - paintings, gold and silver - the past 12 months, according to the Salomon Bros. annual investment survey. That trend could continue, says money manager James Neel. "We're experiencing low inflation or moderate disinflation," Neel says. "Stocks and bonds do best in periods like that." STOCKS POST SLIGHT GAIN: Investor uncertainty over the course of Federal Reserve credit policy and interest rates made for mixed markets Monday. The Dow Jones average of 30 industrials rose 5.45 points to 3,404.14. But declining issues slightly outnumbered advances 887 to 827 on the New York Stock Exchange. Other indexes finished mixed. ABBOTT PLUNGES ON CHARGE TALK: Shares of Abbott Laboratories plummeted 4 1:8 to $27 3:4 Monday after the company said it will take a charge against second-quarter earnings to cover costs associated with removing its Omniflox antibiotic from the market. Abbott voluntarily withdrew the new drug Friday after reports of three deaths and dozens of severe reactions. Abbott has not determined the amount of the charge. P&G GAINS ON WORD OF NEW DIAPER: Procter & Gamble said Monday that it it will introduce a thinner, more absorbent disposable diaper this fall to replace the Pampers and Luvs Phases lines. Its shares rose 1 3:8 to $102 on the news. The new Ultra Dry diapers use a curly cellulose fiber to absorb fluids on contact to prevent leakage. P&G controls about 50% of the $4 billion U.S. diaper market. UTILITIES TO MERGE: Electrical utility Entergy said Monday that it agreed to buy Gulf States Utilities for $2.3 billion. Entergy has annual revenue of $4 billion. Gulf States shareholders will receive $20 a share in cash and stock. Investors didn't like the deal. Entergy shares fell 1:8 to $27. Gulf States rose only 1 1:4 to $15 1:4 - well below the $20-a-share merger price. RECENT OFFERINGS STRUGGLING: For the initial public offering Class of 1992, it's been a tough-luck year. Half of the 268 initial public offerings the first five months of this year now trade below their offer price, according to Securities Data. Average loss: 20%. About 40% trade above their offer price at an average gain of 18%. The remaining 10% are even. TOP CENTEL SHAREHOLDERS TO MEET: Centel shareholders meet in New York Tuesday to talk about the proposed Centel-Sprint merger. The three largest shareholders are expected to attend the meeting, sponsored by shareholder Gabelli & Co. Centel's top brass haven't been invited. GOLD MIXED, SILVER LOWER: Gold prices were mixed, but silver was lower Monday. On the Commodity Exchange, gold bullion for current delivery settled at $338.20 a troy ounce, off 50 cents. Republic National Bank said gold slipped 70 cents to $337.90. The metal rose in overseas trading. On the Comex, silver bullion for current delivery settled at $4.041, down from $4.051. Silver also fell in London. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Tuesday at 3404.14 after closing up 5.45 points Monday. The New York Stock Exchange composite opens at 227.71, down 0.17. The American Stock Exchange market value opens at 396.43, down 0.73. The NASDAQ OTC composite opens at 582.01, down 3.42. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mixed on Tuesday. It opens at 0.5452 British pounds, down from 0.5454; 5.3500 French francs, up from 5.3435; 1.5855 German marks, down from 1.5890; and 127.11 Japanese yen, up from 126.75. (As of 3 p.m. Monday. 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