European Stars And Stripes (Newspaper) - December 8, 1985, Darmstadt, Hesse                                Sunday december 8, 1985 the stars and stripes Page 19 business news taking a round trip on the Stock Market new York not everyone loves to pick winners in the Slock Market but professionals like average inverters can go wrong. The smart ones learn to prof it by this experience turning Lemons into lemonade so o speak. The Ltd corp. Is a company that Fredric e. Russell an investment officer for the Utica National Bank and Trust co., in Tulsa okla., remembers with mixed emotions "1 bought the Slock in late 1983, paying As High As $18 a share he said. But i did t move fast enough to sell it earlier this year when weakness hit the semiconductor Indus try. I finally sold out at prices As Low As ii2." earnings for Ltd which provides equip ment and software for testing semiconductor parts advanced sharply in the first six months of fiscal 1985. But declining order rates put a crimp in company profits for the Quarter ended april 30, 1985. In a Market environment hostile to disappointments the Stock Price tumbled. It taught me to avoid esoteric businesses digest and to focus instead on companies in Mun Dane but proven industries with a history of steady earnings and dividends companies like her shy foods. Wets markets and general Cinema Russell said. It also made me wary of using ideas from the out Side. Nowadays i generate Rny own ideas and i use Wall Street research mainly to play Devil s  Donald i. Trott an analyst at Mabon. No gent & co., is a Wall Street Veteran who has no trouble recalling a Stock pick that want against him. At the time he was chairman of Jas. H. Oliphant & co., a former member firm of the new York Slock Exchange. It was International industries a Diversi fied f incise company known originally As the International House of pancakes he said. I got involved with the Stock at about $20 a share in the Early 1970s and put people in at substantially higher prices before finally get Ting them out at around $10." what particularly Hurt was that he Rode the Stock up to $90 a share and then Rode it investment company Lowers to debt rating Dallas up blaming fierce Competition from japanese semiconductor manufacturers Moody s investors service has lowered the rating of $360 million Worth of Texas instruments senior debt from double-a3 to single Al. The announcement affects to s $200 million 12.7 percent Coupon due in 2005, a $150 million Guarani end eur Nolc paying $ 11.875 Pyrc Cal due in 1991 and $ 10 million on a 4.8 Percy no Coupon due in 1990.  Lerm improve meals in Texas instrument margins and fixed charge coverages May be difficult primarily because japanese integrated circuit manufacturers continue to make inroads into the . Market and prices in Texas instruments comic Tiline data processing markets remain under pressure Moody s said. Yen May be close to stabilizing against Dollar Tokyo up the yen is close to ending its meteoric Rise against the Dollar but where the japanese currency will come to rest is still unclear the head of the Nalion s Central Bank has   of the yen has proceeded smoothly said Bank of Japan governor Satoshi  yen has risen nearly 20 percent since monetary officials from five Industrial nations agreed sept. 22 on a concerted Effort to bolster the yen and weaken the Dollar on foreign Exchange markets. Farmers warned of further income declines Washington a Farmers can expect at least another year of Belt tightening and further declines in property values according to new agriculture department project by one reckoning us a economists think net farm income could drop another 10 percent or so in 1986, on top of this year s decline. And there is Little on the horizon to suggest that a Boom in exports is just around the Corner to help cat up surpluses j, boost commodity prices. Down known in the brokerage business As a round  ultimately he said. International industries Slid into bankruptcy. Trott was Frank in discussing his erroneous judgment with this Slock in Sharp con Trast to one usually talkative Mutual fund Money manager who developed an acute attack of memory loss when asked to re count any portfolio holdings that turned sour. What happened was that i compromised my Quality standards in picking this Stock Trott said. When you have a group that is hot As franchise stocks were at that Lime that sort of thing can happen in the brokerage business which is geared to con stantly feed out new ideas. But one should be sufficiently disciplined to avoid inc temptation. You also learn not to be Overly seduced by what sounds like a great management Story. Even though you might suspect some flaws in the Story you think others will gloss Over it. That s known As the bigger fool  in addition he cited the natural inclination of brokers and analysts who serve pen Sion funds and other institutional investors to Start commiserating with the client when something goes wrong with a Stock that had been  instead Trott said you get More objective input from people who Don t have any emotional involvement with the  Fred Frank cd director of equity re search for Prudential Bache securities once endorsed Quality systems Only to find that a big Winner can turn into a loser. The company produces turnkey computer soft Ware systems for denial practices. The Stock went Public in late 982 and ran from 58.50 a share to a High of $29.75 by mid-1983." Frank cd said. We got out Well before the Slock hit its Low but clients who bought it took a  earlier this year the shares traded below $2. Initially the company showed rapidly growing sales and earnings but the product was based on a Minicomputer system that was relatively expensive the research director said. I figured out later that a lot of the Market for the product was ready to take systems offering fewer solutions for less Money. I Learned that it s very helpful to conduct your own Survey of a customer base rather than relying upon somebody else s data. Bul investment professionals typically Don t have enough Lime to do  stockbrokers too can learn hard lessens from a losing Stock. A broker at another major firm remembers his research depart ment recommending Purchase of the Tan Don corp., a maker of disk drives for per Sonal computers when the Stock was Selling close to its High of $35.25 in 1983. The analyst never told us to sell until after the Slock collapsed the incensed broker said look it up Tandon traded under $3 this year. It taught me to do a lot of my own  United Patti  f nose comp Stock div Beatrice Dana Iowa Al Texaco ame a ism tens a at to scan anti we copyright itts Rilday duct Mytr of Ltd it act Levitt by Yokim vol Cote earn be 7,v2$,70q 46 1 2.2s 300 7,044,000 27 4 31? 80 1,913,300 20 1 78 170 1,884.300 31 1 1 47 310 1,670,270 49 4 3.13 160 1,638,400 141 9.86 14.0 1,607,000 11 1.406.700 73 y 1.39 170 1,361,400 3sxi 3.s7 11 0 1.789,700 2.79 14.0 nose compost let Laronal notch no i Stock clot chg earn be te1 210 120 i9"� a 093 210 9i i 065 140 am exp i we tub 9 n in  74 1h t 83 130 action 12 1h Cio Isop a proc to Tarn Nei Ratto old dividend it Ltd of dry kit St omd in Itoch old 44 36 13 old 12 27 06 1 8 07 33 earnings lat 12 Montti unaudited investor s guide by William Doyle q. My husband and i need additional information about individual retirement accounts. When did iras Start has tace Money put into an Ira always been tax deferred what is the total amount we can put into an Ira annually i am 60 and employed at a yearly $15,000 salary. And what is a rollover Ira a. Congress passed a Law creating iras in 1974 and another Law greatly expanding iras effective it. Chances Are there will be further improvements in iras when and if the lax Reform Bill now kicking around Capi Tol Hill is finally  1982, Only employed or self employed people under age Lovi who were not covered by other retirement plans were allowed to open iras. Those folks were limited to putting 15 percent of their compensation and no More than ,500 a year into iras. A married couple Only one of whom was working could put up to Al ,750 annually into a spousal Ira. Since 1982, every employed or self employed person not vet 70v4, has been allowed to have an Ira even if he or she is in other retirement plans. The annual contribution limit now is $2,000 or 10 percent of earnings. For a spousal Ira that number is $2,250. The Money put into an Ira As Well As the Money it earns in inter Cal dividends and or Gam in value has always been lax deferred. You Don t pay tax on 1ka Money until you withdraw it. In your Case you can put $2,000 a year into an Ira Lor you. Bui you can t make a spousal contribution for your husband if he s past age Tow. You la have to Stop pulling Money Inlo your Ira after you turn 70w. A rollover Ira is different than a regular Ira into which you make annual contributions. You establish a rollover Ira by pulling Inlo in All or part of a Lump sum distribution from an employer s contribute lifted retirement plan. Ution to a lax qua for example if you leave a Job and receive a bundle of Money from a qualified plan you can put it in a rollover Ira. That rollover Ira gets the same tax deferred treat ment As a regular Ira. Q. You answered a question from a Reader who said she had placed $43,000 in a rollover Ira six Yean ago and claimed her account Box is Worth $75,000. That s a fantastic increase of almost 75 percent. In retrospect Don t you think she was either bragging or kidding you a. Not at All. My Handy i talc calculator shows that works out to an average 12.3 percent annual gain not taking compounding Inlo effect. You can have iras with Banks savings and loan associations credit unions insurance companies Mutual funds or brokerage houses. Lots of investment in iras and elsewhere have produced average annual a churns of 1 2.3 per cell or Bellcar Over inc past six years. Q. A recent letter to your column stated i will reach 70m this year. Under the new rules i won t have to Start making withdrawals from my Ira until april 1, next  it is my understanding based on information from my brokerage firm that withdrawals from iras and Keogh plans must Start by the end of the Calendar year in which the participant attains age 70w. Which Dale is Correct a. The Stal Cmunt in the previous column was right As rain. The information from your broker is Oul of Dale. Congress keeps tinkering Wilh the Ira rules. A provi Sion in a Law passed last year altered the withdrawal rules. An Ira participant who becomes 70w in 1985 or later is not required to begin withdrawals until april i of the following year. The new withdrawal rules also apply to self employed persons who have Keogh retirement plans. Q. What will happen if i Don t make withdrawals from my Ira when i reach the age where withdrawals Are required a. The internal Revenue service will clobber you with a mighty fat lax Penally equal to 50 Pyrc Cal of the amount you should have withdrawn. Q. Does the internal Revenue service keep a hit list and go after certain people who have complained about its tactics a. The irs swears up and Down thai in devotes no More attention to people who have griped than it docs to the Resl of inc cilia cry. King feature columnist do to Welcome or Ellen Queil Lont but he can provide an Wert Only i Rouan Ine column. You can write to  in care of tha Start and sir Lei. Apo will . Force