European Stars And Stripes (Newspaper) - May 11, 1986, Darmstadt, Hesse                                Sunday May 11, 1986 the stars and stripes Page 19 i a 1 to 7f, pc of t " business hews tepid Economy made Market uneasy new York up the snark Etsch sawed last week As investors tried to assess the Impact of a weaker . Dollar firmer interest Rales rebounding crude Oil prices and new la proposals. Unease about the tepid Economy also kept aggressive buyers sidelined. The Dow Jones Industrial average Rose 14.75 Points to finish the week at 1789.43. The Market climbed monday lost most of. That gain tuesday and wednesday moved higher again thursday and posted n. Small gain Friday. One of the Market s main concerns last week was How Well the Bond Market would respond to the Treasury s sales of $27.billion of new debt said Brian Luedtke of Minneapolis based Piper Jaffray & Hopwood. On u Short term basis investors will re main defensive Luck Lac predicted Jerome Winkle of Sanford c. Bernstein agreed. Even though the Treasury s auctions went fairly Well investors will main lain a wait and see Altitude he said. Hinkle said the Market had found Good technical support Between poo and i73i on the Dow. But he said this week when scheduled government reports will probably reflect a lacklustre Economy the Market will be Likely to spend some Mare time in the doldrums looking for direction. On the trading floor. Sperry was the most Active new York Stock Exchange listed Issue climbing Svi to 73h Burroughs corp. Launched a s70-a-Sharc Lender offer for the company. Burroughs Rose in to to6i�. Phillips Petroleum followed rising i to i of As crude Oil prices climbed above s 1 5 a Barret. Elsewhere in the Oil Patch Mobil added a to 30vi, Exxon climbed w to 58k, Occidental Petroleum jumped 2h to 28 a Chevron Rose 1 w to 40ta and Texaco spurred investor s guide by William a. Doyle q. I purchased $25,000 of municipal Bonds three years ago. Toe confirmation slip from my broker stated that these Bonds were due i pm and were callable 7/1/9z at 103," a few weeks ago my broker said $5,000 of the Bonds have been exited and 1 received redemption at heir face value. Based on the confirmation slip i had assumed none of these Bonds could be called before july 1, 1992, and that if they Are called on thai Date would gel 103 percent of face value. Am i getting the runaround front my broker a i doubt it. More Likely  of those Bonds have been called for Early redemption through a sinking fund provision Many municipal and corporate Bond issues have such arrangements. At the Lime Bonds Are issued 8. Maturity Dale is set Jan. 1, 1995, in the cose of your Bonds. The issuer pledged to pay off your Bonds at face value on that Date. The Bonds might also have a Call provi Sion giving the issuer the right to redeem All the Bonds on and after a certain Dale at a stated Orice july 1, 1992. At 103 percent of face value in the Case of your Bonds. However when there s a sinking fund provision the issuer also had the right to redeem some of the Bonds gradually even before the Call Date. Sinking fund provisions vary from one Bond Issue to an other. An issuer might have the right to redeem say s percent of the Bonds each year and pay them off at face value. Ism wus the third most Active Issue Tail ing 4 a to 149ft. A Morgan Stanley analyst Oil her 1986 and 1987 earnings estimates for the company. Among other actively traded Blue chips at to Rose w to 25 a general motors added w to 77%, american express lost w to 58, . Secl climbed 1u to 21 w and Eastman Kodak snapped on 14 to 55ft. Takeover situations were responsible for some of the week s most dramatic gains. Besides Sperry which wan the week s big Gest Winner Viacom jumped 9 to 72 amid acquisition speculation. Saga jumped 8m to 37 h. The restaurant and food service company received a s34-a share offer late wednesday from Marriott corp Black & Decker advanced 2h to 23. Its management said it is not considering a buyout. Retailers advanced. April sales gains were subdued but investors concluded that the new lax proposals including a corporate lax Cut and the potential for More disposable consumer income  retail outfits. Gap inc. Jumped r%io77, a Marl added 3hlo49wandscursclimbcd2 .4lo.i6w. . Pc Nuy rang up 7il to 75w. A said it expects a 20 percent Rise in first Quarter earnings. Goodyear climbed i. 10 31h. Ii reported a first Quarter loss of fio million is. Net earn along with All other provisions "1 ing fund details Are set at the time Bonds arc issued. You la find them spelled out in the Fly speck Type on the Back of the Bond certificate if you have left your Bonds with your broker and Don t have Possession of the certificates you have to gel the in formation from the broker crawled in this particular Case the Sinkins fund Story comes to you too late. But you should find out about rails and sinking funds before a i to 2fi6, the nose composite indu Rax 1,7310137.12. Firms still in Nicaragua despite Reagan embargo attached. Of course it1 a bother la clip a Coupon and Cash it each Lime one comes due. And our tank charges $10 for each Coupon we Cash or even Deposit in our account. We thought about tuning the Bonds changed to registered form to thai the interest checks would be mailed directly to us. After disclosing this with our broker he made a different suggestion he said. If we clip All the remaining coupons off our Bonds and Ghe him those coupons his firm will give us a receipt. We would retain the Bond certificates with out the coupons. Then u each interest Coupon comes due his firm will Cash it and Send us a Check. What do you think of this idea a Don t go along with ii. It could Lead to problems. If you Ever want to sell any of those bearer Bonds you la have to present them with All remaining interest coupons on them As they were issued not Sepa rate or even cellophane taped or paper clipped to the Bonds. Otherwise you won t make what s known As Good delivery and no broker or banker in his or her right mind will accept them for Sale. The same thing applies if the Bonds Are called for Early redemption or Are re deemed through sinking funds coupons from bearer Bonds should never be clipped off until the time to Cash them. I suggest you go ahead with your thought about having those Bonds changed from bearer to registered form. That can be done with most municipal Bonds by presenting them to the registrar for each Bond Issue " ". A a radio fiyut Natal commentator said the interest from municipal Bonds b completely us  in t ii True that Stales Levy income tax an interest from municipal Bondi issued in Liber tales a. States with income taxes do just that. Also five slates Illinois Iowa Kansas Oklahoma and Wisconsin Levy state in come tax on interest from All or some of the municipal Bonds issued within their Borders. King Fatur i column Davit welcomes  but i can provide a intr Only trough la column. You in wrist to him h can of the ,po�ll..for.,. By Cox news Stoice Managua Nicaragua some 30 . Companies continue operating in Nicaragua despite difficult conditions brought by he Reagan administration s Trade embargo imposed nearly a year ago. The alternative businessmen and Diplo Mats said would be to abandon investments made Long before the marxist dominated sandinista came to Power All but one of the 30 companies arc nicaraguan staffed outlets of Large multinational firms ism Nabisco and Monsanto Are among them. The largest of the . Investments Here is the Esso Oil refinery which under the control of the government Oil company re fines 11,500 barrels a Day of soviet crude Western diplomats said nothing Here is important in economic terms except the Esso refinery diplomats said and that s not important in world wide terms. They just Don t want to walk away.". Xavier Ortiz general manager of the Esso refinery declined to discuss its opera Tion but he confirmed that none of the re finery employees Are . Citizens. Only one . Businessman the manager of a . Oil company is still based in Nicaragua. He agreed to discuss conditions Only if he and his company remain Anonymous. We stay Here because we have an in vestment Here he said. Our executives feel Yon Don t walk away from an invest ment. You Slick it out and Hope things gel  company s investment is valued at some $3 million he said. The company is not profiting from its Nicaragua operation. All business must be done in the National currency Cordoba because of the shortage of foreign Exchange. And Cordoba do not get repatriated. We make earnings in Cordoba but we Are unable to transmit those earnings to the Mother company he said. Stock pulse do my Gnu to Hummil c Atli Frklic Miv v i nose commute Hotl a claw by Dumi the Trade Sanction imposed last Muy added to the difficulty of working in Nicaragua. While the company previously Pur chased parts and supplies from its dealers in the United states now ii must go through third countries. The embargo hoi disrupted our sup plies the businessman said. We were bringing in lubricants from the Stales. Things like pumps hoses we would have used a . Supplier. Now we be had to find alternate sources.". Nicaragua companies face the sum dilemma. Foreign Trade minister Alejandro Martinet Cuenca estimated thai lasses caused by dislocation and higher costs in pc been j50 million. The amount is not insignificant in a country As poor As Nicaragua Martinez said but the nation has won sym Pathy paints internationally because of the embargo. The effect of the embargo has been Lew than Reagan iries to make it Mur incr said it has been the Mirror of u failed.  Between Nicaragua and. The United slates had been dropping steadily since the 1979 revolution. Although the . A a major Market for nicaraguan sugar of fee and beef the nation has found other outlets for its exports. In 1980, Trade with the United Stales comprised 30 percent of Nicaragua s Tola Trade. By 1984, the figure dropped la i percent and for the first five months of 1985 the figure was Only s per cell. Trade Wilh was Lorn and Western Europe has grown As Trade Wilh the United Stales has diminished according to government Fig  sanctions As such have probably not been very effective in economic terms diplomats said. Far More serious has been the Lack of foreign  businesses that require an import have found ways around the sanctions. Basically there has t been much they Haven t been Able to attain if they wanted to attain ii diplomats said they just have to pay a middleman  Stock did sir Roik   Coody Ocean Modi m4u4v it a Outlin pm cum Earni be old Owoo ran i  u3,410,600 lit " lit 7.0 j.st073s.a 0.7n 1.47 a uj.j4 11.0 u is 11.0 7.z  Sim i.407.mo in Lillo Joo my 1,447,400 a  life Hose cup let Grant nil chm9 Slock Cal in of earn be old dog Lull Eppl 1774k it i 7.s4 74.0liwtr 45 so 9,4 3j 77 422714 a Oil i pcs inn Ojill Sara Leta a Wacky l