Dow ekes out a gain of 1.39 points

The Ticker

June 10, 1993|By Julius Westheimer

After rising sharply in the first hour, stocks drifted steadil lower throughout the day. The Dow Jones industrial average managed to hang on to a slim gain, inching up 1.39 points, to close at 3,511.93.

WALL ST. WISDOM: "There are lots of ways to make money in the stock market. Wal-Mart was small fry when it went public in 1970, but a buyer of 100 shares at $16.50 a share (total investment $1,650) would now own 102,400 shares with a value of $2.8 million. Just hold good company stocks through up and down markets." (Michael Burke, editor, Investor's Intelligence)

BALTIMORE BEAT: Prudential Securities' investment executive Manuele Wasserman is included in the new 1993-1994 edition of "Who's Who in America." . . . Black & Decker stock has been added to Legg Mason's "Investor's Dozen," which Gerald Scheinker (486-8010) will mail you. . . . Dean Witter's Jack Rosenbloom will send "Are You Prepared for Unexpected Bills for Convalescent Care?" if you phone him at 547-7027. . . . Call Lyle Benson Jr., (825-8300) for a thoroughly researched 50-page brochure, "Small Business Owner's Guide to Owning a Business in Maryland."

JUNE JOURNAL: "As of today the share of the national debt for every man, woman and child in the U.S. stands at just under $17,000." (CBS News) . . . Showing the value of beginning early -- and investing in the right fund -- a Templeton Growth Fund ad shows that $10,000 invested in November 1954 is now worth $1,761,928, including reinvestment of all dividends. . . . "Sell a business, real estate or other property to family members or other heirs, and instead of a lump sum or a series of payments, get back income for life. Done right, this removes property from the seller's taxable estate." (S&P Outlook) . . . "Want to earn nearly 6.5 percent on two-year government paper? That's what Government of Canada notes are paying, much heftier than the 4 percent yields on two-year U.S. Treasury notes. With short-term government debt, there's little risk." (New York Times)

HOPEFULLY HELPFUL: Kiplinger's Personal Finance Magazine, June, runs an appealing cover story, "Big Ideas For a Little Money: Great Places to Put $1,000 Now." Excerpts: "Join the Low Cost Investment Plan of the National Association of Investors Corp. (1515 E. Eleven Mile Rd., Royal Oak, Mich., 48067) for $32, allowing you to buy initial shares of stock in more than 100 companies without paying broker commissions. After you own that first share, most companies with dividend reinvestment plans (DRPs) will sell you additional shares directly without commissions. . . . Mutual funds with small minimums include Nicholas (800-227-5987), Berger One Hundred (800-333-1001), Janus (800-525-8983) . . . Take your travel agent to lunch and tell him/her to let you know when he/she gets wind of a true travel bargain."

MARYLAND MEMOS: Rick Faby, a frequent contributor to this column, has joined Dean Witter (547-7000) as a first vice president. . . . Chapin, Davis' newsletter, The Disciplined Contrarian, has issued a "Buy Report" on Tasty Baking stock and suggests that investors "accumulate shares of P.H. Glatfelter TC Co. on weakness." Phone David Clogg (435-3200) for the reports. . . . Moneypaper, June, publishes a "buy" recommendation on Bethlehem Steel. . . . Investment Counsellors of Maryland says, "One key to producing excess returns is adherence to a 'sell' discipline. Earnings results below expectations are dealt with harshly in terms of stock prices. Still, this is a market with an upward bias."

STOCK WATCH: "Price projection for the final bull market Dow Jones peak is 3,600-3,700, which is fast approaching. Timing methods point to June 4 (plus or minus two trading days) and the month of August as probable times for that peak to occur." (Prechter's Global Market Perspective) . . . "We still believe this is a bull market, although a very old and tired one. We don't think the short-term internals can support much more of a move higher at this time." (Todd Market Timer) . . . "Recent drop in net sales of aggressive growth funds provides more evidence that the market is extremely overvalued and overpriced, and confirms our belief that investors should be very cautious." (Growth Fund Guide) . . . "Market front-runners have performed miserably since 1982. U.S. Surgical, for example, sold at a 70 price-earnings ratio. By April 1993, the stock was off 73 percent." (Mutual Fund News Service) . . . "Because money rates are so low, 'floating-rate' bonds with a floor offer dandy alternative to money market investments." (Ben Weberman, Forbes, June 21) . . . "The learned ones of academe have discovered what some of us knew all along. Buying low P/E stocks is a better strategy than chasing growth or momentum or chart formations." (David Dreman, author, "The New Contrarian Investment Strategy") . . . "Inflation is a bogyman, and bonds are a buy." (A. Gary Shilling, economic consultant)

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