Buy Shares

Q. We're thinking of buying 10 shares of Blockbuster Entertainment. Its stores seem to be on every corner. Though 10 shares isn't a lot, we want to be careful with our retirement dollars.A.This flashy company isn't receiving rave reviews anymore.Don't buy shares of Blockbuster Entertainment (around $10 a share, New York Stock Exchange), the big video rental chain which both owns and franchises stores, for company growth has been slowing since 1989, said David Presson, analyst with Edward D. Jones & Co.For example, average monthly sales of its company-owned stores, up 35 percent in 1988, rose just 8 percent in 1989 and 7.5 percent in 1990.

Penn National has spent $13 million to defeat Question 7 and protect its gambling interests in Maryland. Now it may be abruptly altering its strategy. The Pennsylvania-based company, which owns Hollywood Casino Perryville, is in discussions with the Cordish Cos. about acquiring a 49 percent stake in the Maryland Live Casino, according to a state source familiar with details of the negotiations. The Washington Post first reported the talks on its Maryland Politics blog. Officials from Cordish Cos. could not be reached Tuesday.

Q. What are your thoughts about investing in International Paper Co.? I know the paper industry has gone through hard times, but so has everything else. I'd appreciate your opinion.A.You can expect plenty of paper profits. Buy shares of International Paper (around $69 a share, New York Stock Exchange), the pulp, paper, lumber and plywood company, because it is well-positioned for eventual economic recovery, advised George Adler, analyst with Smith Barney, Harris Upham & Co.International Paper is a great paper producer, in Adler's opinion, one of the few companies making money in that field.

Mall owner Simon Property Group said Thursday it would increase its ownership in Arundel Mills Mall and Arundel Mills Marketplace in Hanover as part of a $1.6 billion deal to acquire its joint venture partner's stake in 26 Mills malls and shopping centers nationwide. Simon has signed an agreement with Farallon Capital Management LLC to acquire Farallon's stake in properties owned by The Mills Limited Partnership. The purchase price includes the repayment of some of the Mills' debt.

Q. I am currently holding 45 shares of Amoco Corp. and want to keep them. What are your thoughts on the stock? Should I buy more?A.If you're confident about investing in Big Oil, this company is among the best.Buy more shares of Amoco Corp. (around $51 a share, New York Stock Exchange), a giant firm in resins and domestic integrated oil, because they should outperform the overall stock market and offer little risk, said Robin Shoemaker, analyst with Shearson Lehman Brothers.It's true that oil companies are facing reduced long-run consumption and must emphasize fuel efficiency.

O. What are your thoughts on the Gap Inc. as an investment? I This clothing chain's shares are wearing well.A. This clothing chain's shares are wearing well.Buy shares of Gap Inc. (around $61 a share, New York Stock Exchange) because it has handled recession well with its reasonably priced sportswear and continues to open 100 new Gap stores each year, said Bill Smith, analyst with Smith Barney, Harris Upham. Its GapKids and Banana Repuplic divisions have also been expanding its popular product line, he addfed.

Q. My broker has always advised me to buy on bad news, and that's all there seems to be with bank stocks. What do you think about Citicorp?A.Don't bank on this stock prospering just yet.Hold off buying shares of banking giant Citicorp (around $15 a share, New York Stock Exchange) until the quality of its assets starts to stabilize, advised Frank DeSantis, analyst with Donaldson Lufkin & Jenrette."While I'm currently neutral on Citicorp stock, there is really more positive than negative news," said DeSantis.

Q. What are your thoughts on Microsoft Corp.? My investment adviser is always pushing this stock.A. There are definite reasons why Microsoft Corp. chairman Bill Gates is so rich.Buy shares of Microsoft (around $118 a share, over the counter), the computer software giant, for it's enjoying considerable success with its MS-DOS 5.0 upgraded operating system, said Betty Liter, analyst with Montgomery Securities.After getting off to a great start thanks to its relationship with IBM, Microsoft's image dimmed a bit in 1990 when that relationship soured.

Q. We own 100 shares of Texas Instruments. This investment hasn't been all we'd expected. Should we hold on or move on?A. There are still problems deep in the heart of Texas as far as this stock is concerned, but there's no reason to get out just yet.Hold your shares of Texas Instruments (around $30, NYSE), the famous semiconductor and electronic equipment firm, even though the company will lose money this year and probably just do OK next year, said Wendy Abramowitz, analyst with Argus Research Corp.

Q. I'm always hearing about the other big brewers, but not much about Adolph Coors.I own 35 shares and want to know where my investment stands.A. This company is a spunky chimp locked in a brutal battle with two powerful gorillas.Sell your shares of Adolph Coors Co. (Class B, around $21 a share, over the counter), the nation's third-largest brewer with a 13 percent market share, for it's becoming increasingly difficult to compete against the giant brewers, said George Thompson, analyst with Prudential Securities.

McCormick & Co. is expected to make inroads into one of the world's biggest consumer markets for spices with a planned $35 million investment in an Indian spice and seasoning business. Sparks-based McCormick, the world's largest spice company, said Tuesday it had agreed to acquire a 26 percent stake in Eastern Condiments Private Limited, based in the Indian state of Kerala. The deal is expected to close in the fourth quarter and is subject to regulatory approval. McCormick says the partnership will help it capitalize on the rapid growth of the consumer spice and seasoning market in India — the second-most populous nation and, according to McCormick, the world's largest consumer of spices.

The problem: You have a stable of stocks that aren't going anywhere and you're tempted to sell to shift the proceeds to a nice, safe certificate of deposit earning a tidy 5 percent or so - three times the rate of a couple of years ago. But selling those stocks might trigger a capital-gains tax. And it would mean putting that cash on the sidelines, defying all the experts' claims that stocks are the most profitable long-term investment. If only there were a way to squeeze a little more return out of those stocks without dumping them.

NEW YORK -- The Forbes family has sold a minority stake in its magazine and Web site businesses to Elevation Partners LP, the buyout firm whose partners include U2 lead singer Bono. Terms weren't disclosed. Elevation Partners invested in newly created Forbes Media LLC, the publisher of Forbes magazine and Forbes.com, the New York-based company said in a statement yesterday. "I like our chances here," Roger McNamee, a co-founder of Elevation Partners, said in a phone interview. "Trust and authoritative content are the keys to be a successful investor in this industry and Forbes has both."

Despite a tear-filled apology and an emotional plea for mercy, Daniel Baldwin Jr., a senior securities broker who once orchestrated stock trades for pension fund manager Nathan Chapman, was sentenced in federal court yesterday to serve 18 months in prison. Baldwin, 49, of Randallstown, pleaded guilty in October to one count of securities fraud for buying hundreds of thousands of dollars' worth of shares for a startup company run by his boss at eChapman.com Inc. A federal jury convicted Chapman in 2004 of bank fraud; he is appealing the conviction.

A Connecticut-based hedge fund has bought up a major stake in Columbia-based Duratek Inc., becoming the largest shareholder in the radioactive and hazardous waste management company, according to recent financial filings with the Securities and Exchange Commission. Tontine Capital Partners LP controls 1.92 million shares out of 14.86 million outstanding, or almost 13 percent, with 342,500 shares purchased in a little over a month. The fund paid between $14.99 and $16.13 a share for its most recent purchases.

William H. Miller III, manager of the $14 billion Legg Mason Value Trust fund, said he might buy shares of Google Inc. during the company's stock-sale auction, depending on the price. Miller, whose fund has outperformed the Standard & Poor's 500 Index for a record 13 years, declined to reveal how much he would bid during the initial public offering. Google, the world's most-used Internet search engine, is worth between the market value of Amazon.com Inc., about $18 billion, and the market value of eBay Inc., about $57 billion, Miller said.

Q. I am interested in buying 35 shares of Procter & Gamble. I know it's a quality company. But what's your advice on this?A. There's never been a gamble with this company's stock.Buy shares of Procter & Gamble (around $98 a share, New York Stock Exchange), the household, personal care and food product company, because its growth in profits is strong and encouraging, said Deepak Raj, analyst with Merrill Lynch & Co.Famous brand names such as Tide, Cheer, Crest, Ivory, Comet, Folgers, Pampers, Charmin, Noxzema, Old Spice and Hawaiian Punch pack a wallop.

Mercantile Bankshares Corp. purchased a minority stake in a Virginia firm that operates hedge-fund products and invests in private companies, areas expected to bolster the wealthy-client business of the Baltimore-based bank, the companies announced yesterday. The amount of the deal, which gives Mercantile a 19.9 percent share of the McLean, Va.-based Winston Partners, was not disclosed. "This is an outstanding opportunity for Mercantile," said Wallace Mathai-Davis, chairman of Mercantile's investment and wealth-management operations.

Kenneth L. Lay sold $100 million in Enron stock last year, the company disclosed yesterday, a large part of that shares sold back to the company after he had been warned by Sherron S. Watkins that Enron might collapse "in a wave of accounting scandals." The sales, disclosed in a report by Lay to the Securities and Exchange Commission, included $20 million of shares sold Aug. 21 to Sept. 4. Watkins, an Enron executive, sent her first letter to Lay on Aug. 15 and met with him Aug. 22. It is not clear how much profit Lay made on his stock sales, many of which came while he was encouraging Enron employees to purchase shares.