Dow holds on to gains IBM slips to 11-year low

The Ticker

December 22, 1992|By Julius Westheimer

Holding on to most of Friday's 44-point rally, the Dow Jones industrial average slipped less than one point yesterday, closing at 3,312.46. IBM stock, which reached 139 3/4 last year, sank 2 5/8 points to 48 3/4 , an 11-year low.

AND NOW WHERE? "We see definite signs of economic improvement, but today's danger is that interest rates will rise and stocks fall." (Martin Zweig) . . . "Rising short-term rates plus rising optimism could lead to short-term Wall Street trouble." (LaLoggia's Report) . . . "It doesn't get any better than this: low interest rates, low inflation and stocks higher." (Harvey Eisen) . . . "I would buy Home Depot and Wal-Mart Stores. We wouldn't eliminate a company with a high price-earnings ratio as long as its growth rate is strong." (James Jundt, growth stock specialist)

LOOKING BACK: "Money is a good servant, but a bad master." (Handbook of Proverbs, 1855) . . . "I don't know what a chamber of commerce is unless 'tis a place where businessmen go to sleep." (Finley Peter Dunne, 1867-1936) . . . "If you can build a business up big enough, it's respectable." (Will Rogers) . . . "Grub first, then ethics." (Bertolt Brecht, "The Threepenny Opera," 1928) . . . "General Motors is not in the business of making cars. General Motors is in the business of making money." (Thomas A. Murphy, GM president, 1915)

LOOKING AHEAD: A list of "Superior Industries for 1993 Market Performance" includes banks, drugs, pollution control, rails, restaurants, semiconductors and steel in S.& P. Outlook, Dec. 16 . . . "To accumulate $500,000 at retirement, assuming a 10 percent annual return, you need a monthly investment of only $79 with 40 years to retirement, but $219 with 30 years to go, $653 with 20 and $2,421 with 10 years remaining. The required investment triples for every decade you delay." (Kiplinger's Personal Finance Magazine, Dec.) . . . "The best 1993 investments will be stocks, but pick individual companies rather than play the market trend." (Dessauer's Journal)

BITS & PIECES: In the 1970s and early '80s, all IBM salesmen were required to wear white shirts and have their shoes shined every day. . . . The latest Kiplinger Washington Letter says that the new budget director, Leon Panetta, is well-known as a deficit fighter and tax raiser, adding that he will probably attack military spending and entitlement programs. . . . I can hardly comprehend what I recently saw and heard on CNN-TV: that 13 million (no misprint) children around the world starve to death each year. That number of children would fill to capacity 282 (no misprint either) Oriole Park at Camden Yards stadiums.

BALTIMORE BEAT: Legg Mason's Gerald Scheinker (486-8010) will mail his firm's 24-page Mid-Atlantic Review. ("Black & Decker: earnings estimates lowered, debt agreement revamped . . . Giant Food: Modest nature of recovery and growing impact of warehouse clubs will sustain competitive environment; Home Depot: continue to rate as source of funds purely on valuation basis.") . . . Westinghouse Electric stock is listed under "Five-Star Stocks: S&P's Buy List" in the publication's 1993 forecast, and T. Rowe Price International Stock Fund appears under "Recommended Mutual Funds" in the same issue.

HOLIDAY HASH: "Hiring Demand Soars for Sales, Marketing Professionals" is worth reading in National Business Employment Weekly, Dec. 18-24 issue, on newsstands this week. ("Of 1,100 hiring authorities polled, 37 percent plan to boost sales staffs in first half of 1993 . . . Three industries anticipating major hiring gains are environmental, pharmaceuticals, health care.") . . . "Don't advertise to thieves; before throwing out packaging for that new VCR, TV set or computer that you just bought or received, cut up the cartons and stuff them in trash bags." (Dollar Stretcher) . . . "Of course, when you seasonally adjust me, I suppose I'm better off than I think I am." (Threadbare, unshaven man on park bench talking to well-dressed man in a Barron's cartoon, Dec. 21 issue) . . . "Worthless securities are deductible in the year in which they become worthless. If you're not sure of their worth, check your broker or 'Capital Changes Reporter,' published by Commerce Clearing House and available in most libraries." (KPMG, Peat Marwick)

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