Dow gains 14.59, halves Friday's loss

The Ticker

March 16, 1993|By Julius Westheimer

Erasing half of Friday's decline, the Dow Jones industrial average gained 14.59 points yesterday, closing at 3,442.41. When Wall Street opened this morning, the Dow stood 306 points above its 12-month low and only 36 points below its record peak.

MARCH WINDS: Your federal and state income tax returns are due one month from yesterday. You may get a filing extension, but the money is still due April 15. Consult your accountant . . . The following stocks are listed under "High-Yielding Stocks With Reliable Dividends" in Business Week, March 15: Bankers Trust, Boston Edison, Bristol-Myers Squibb, Dominique Resources, Exxon, Flowers Industries, Sierra Pacific, Syntex, Texaco and Upjohn . . . Several years ago 90-day Treasury bills yielded about 6 percent, today 2.7 percent, a painful 50 percent-plus drop in income.

DON'T BE BASHFUL: "Good negotiators are not bashful. Push to get everything you want -- realize that wanting things does not make you a bad person. Many people feel and act awkward when making an initial pitch, as if they are asking for more than they deserve. Result: a skilled opponent quickly gains the upper hand. Helpful: Recognize that you have to live with the deal once it is done. Choose your positions accordingly." ("The Haggler's Handbook" by Leonard Koren, $12.95)

MARYLAND MEMO: Inc. magazine, March, says about Ideas Inc., a $30 million telecommunications and computer company in Columbia: "For company owners who can't bring themselves to sell more equity than they want to, here's an intriguing variation on traditional venture capital: Instead of letting the venture capitalists buy 50 to 60 percent of your business outright, invite your investors to bet on your ability to perform. If you can't make your plan, give them a bigger stake in the business than they otherwise might have gotten; but if you can, ask them to settle for less and you keep more. Ideas' President Don Barrett says, 'If the owners of the companies we invest in achieve their plan, they can end up with more ownership than they'd have with most other venture investors.' "

HOPEFULLY HELPFUL: Want to shorten your phone calls? Eclipse Products, Darien, Conn., sells for $14.50 a gadget that simulates that loud click of "call-waiting," so you can politely get off the phone. Call 1 (800) 247-2570 . . . "To figure out if tax-free bonds are suitable for you, determine your taxable equivalent yield, like this: Subtract your marginal tax bracket from 100. Take its reciprocal and multiply by the yield on a tax-free bond or fund. Example: 100 minus 31 equals 69; 100/69 equals 1.45; 1.45 x 6 percent = 8.7 percent. Result: You'd need more than 8.7 percent taxable to top what a tax-free bond will bring." (Personal Finance) . . . "Looking for a good deal on a gold credit card? Try USAA Federal Savings Bank. The San Antonio-based thrift just dropped the $20 annual fee while holding the 12.50 percent rate. To apply, call 1-800-922-9092." (100 Highest Yields) . . . The latest Kiplinger Washington Letter says that real estate will improve in 1993, triggered by lower interest rates, good prices and a higher-than-usual number of first-time home buyers . . . "Some married couples may find it more advantageous to file separate tax returns rather than joint returns, especially if one person has high medical expenses." (CNN News)

WALL STREET WATCH: "We are within 5 percent of the stock market high for the year. My favorites now are foreign stocks and real estate investment trusts. Tax increases are going to hurt this economy." (Howard "Pete" Colhoun, last year's and this year-to-date's best stock picker) . . . "The market isn't cheap and won't be higher in six months. The economy is pretty weak." (Martin Zweig) . . . "The stock market will gain about 6 to 8 percent this year, interest rates will come down more and I suggest buying tax-free bonds. Regarding the economy, Clinton's stimulus package won't help much and health care reform will make the deficit worse." (John Lipsky, chief economist, Salomon Bros.) Above quotes from Friday's "Wall Street Week With Louis Rukeyser") . . . "Investors looking for growth and income should buy the common stock and bonds of Wal-Mart." (Dessauer's Journal) . . . "The more we study the overvaluation of the grand bull market, the more we feel we may see a 'take no prisoners' price decline. The grand exit will not be leisurely." (Charles Allmon, Growth Stock Outlook).

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