European Stars And Stripes (Newspaper) - June 29, 1986, Darmstadt, Hesse                                Sunday june 29, 1986 the stars and stripes Pago 19 business news Market up slightly Dow at 1885 new York up11 the Slock mar Ket managed a slight gain last week. Trading was moderate and analysis noted prices were Little changed from where they were a month ago. The Dow Jones Industrial average gave up ground monday retrieved it tuesday and wednesday incurred a modest loss thursday and erased it Friday for the week the Dow Rose 5.72 to1885.26, just under in record closing High set june 6, of 885.90. Analysis said the Market continued to encounter resistance Asil approached1900 on the Dow. Scepticism about the Economy s ability to produce stronger corporate earnings dominated investors thinking analysts said. The Market fell into the pattern of the previous three weeks Laid Brian Luck Lac of Piper Jaffray 4 Hopwood. When the Dow nears 1900, profit Tak ing sets in Luedtke said volume last week was rather disappointing but he said the Lead advancing issues had Over losers to Ward the end of the week was a Little More  led Lac said the Dow still appears poised to move above 1900 within Thene a few weeks. Higher prices in the Bond Market retelling us Ihal the Federal Reserve will probably Cut the discount Rait after the fourth of july and that should have Posi Tive implications for  Lundt Esaid. Hildegard Zagorski of Prudential Stock pulse Bache securities said the Market could do better this week. The Market s not going like gang bus ters but it is behaving Well she said. A Money managers make last minute adjustments in their portfolios As the Sec Ond Quarter ends the Market could make it through 900, Zagorsky i said. At to was the most Active nose listed Issue easing / to 25. Members of at to largest Union returned to work Friday ending their 26-Day strike. Commonwealth Edison followed was associated dry goods was he third most Active Issue and the week s biggest Winner. It soared 1 9 a to 65 on news that May department stores co. Offered $2.7 billion to buy it. The move would make May the biggest general merchandise retailer in the nation. May fell 7 to 80v other retailers advanced. Allied stores jumped 7 i to 52 i Kmart rang up i to56h and Sears Rose 1 to 48. Sanders associates was the week s Sec Ond biggest gainer. It jumped 19 to 50 after Loral corp. Proposed a business combination in which Sanders shareholders would receive j44 a share in Cash and securities Sanders chairman called the offer inadequate. Loral Rose 1h to43trading in Panhandle Eastern helped push the Dow Utility Index to new highs thursday and Friday. The diversified Energy company said it received and rejected a request from a third part to negotiate its possible acquisition. Its Stock jumped 8w to 48 i. Fruehauf sex dividend added 2 a to 49 a ii accepted a leveraged buyout offer from management for 548.40 a share but then received a sweetened bid of $49.50 a share from a group led by new York investors Asher Edelman. Safeway stores Rose 5 a to 53w amid talk that the Dart group will bid for the company. Itt climbed a to Svi on news that it is discussing the Sale of its european telecommunications division to the French National telecommunications company for More than $2 billion. Philip Morris Rose 4h to 74w. The company said tuesday it has terminated its agreement to sell seven up to Pepsi co. Termination of the Deal which had carried a Price lag of $380 million Fol Lowed last week s decision by he Federal Trade commission 10 oppose the Sale on the grounds that it would reduce Competition in the soft drink Industry. Overall 1,203 issues posted gains while 750 showed losses among a total of 2,177 issues traded. The Dow transportation average lost0.63 to 777.50. The Dow Utility average Rose 8.29 to 198.78. Broad Market indicators ended the week at new highs toppling records they set wednesday. Standard i poor s too Stock Index climbed 2.02 to 249.60. The new York Slock Exchange composite Index Rose 1.53 to 143.18. Big Board volume totalled 684.069,240 shares compared with 629.777.fioo week earlier and 518,342.082 during the same week a year ago. Composite volume for the week was 814,016,120 shares compared with735.804,820 a week earlier. Shipping officials note gains in . Exports by Prim pit Man manuf out Nyu Cali want hot a Flam or vol Una s10c or a cum Elm Fth Glim re 1221 .000 us i 1 07 a7 i 12 Pix 4.122.900 4ik 2s3 Iso 47 itt  53 1942so 1.9 Al  a. In 55h 11 it Wien i.7m900 20k 2 is 1.0 10.b set Ftp i,m�.600 eth 3, u 14.0 12 fam Hal i.4i9.too 49 i 3 d2 1to m by just  m ou910 33 Salomon 1.1ujoo 4bu 4.10 120 1.1 Rodillo t.om.700 1914 033 a 0 90 Nyu Coaloa Alm Lam he of Mojo sack a won witty wangle a Homard Amu can film Moil att Tom by volum. Vaclow earn. Be to w3.000 2j i 1 1.m 14. 0 1.4  soil 940 &27.300 i5fc 1.1 435.000 14 39s.boo 9 hither my js8 200 9 am my 290.000 7� 0.34 21 0 info int 501.900 3v, my Biol Hamas emf an a Coak Miha Lamar n1 change Slock cd Cha Earni p e my Home shop 90 --uk.3s /. Jew it 240  pita holy Keg again Luu he us Nav. 4tvi 11 3gk As 118 7?k so i 4h 4k 3k 3v. 2u 2� 1 2k t 1 07 47.0 1.14 11.0 ammo 253 19.0 191 �0 200 to 722 to 7.v  1 m 300 12 01 4.7 0.9j.5  1.3l.i 1.3 Oik Libr Ltd Pluto pan Tameno prove  431 2k 2.99 Iso 1.2 16% 3 1 to 9-017� 2 30k. 2 lit 11.0 54 Llyl 2 119 is Jin 0.96 a b2i4 in 293 Iso 09  Pri to old Dawd two Lugt met 13 Rwy ilm a uld Tud san Francisco not ship Ping companies and Pon official on the West coast say thai for the first Lime they arc seeing solid evidence of a Resur gence of american exports because of last year s International Effort to weaken the Dollar in world Trade. In acc Cal weeks containerized ship ments of american made products from West coast ports have been up More than 10 percent above the previous year shipping officials Climati typically port officials say they Are the first to spot shifts in the flow of International Trade. Las fall the United slates France Britain West Germany and Japan took Steps that led to a reduction of nearly 30 percent in 1he Dollar s value against Sev eral major foreign currencies making american products cheaper abroad and imports More expensive we re seeing a definite Rise in exports said Mick Dinsmore director of the Marine division of the port of Seattle. The firm handles about 40 per cent of the containerized shipments from the United states to Asia. He estimated that shipments to Japan and other asian countries this year from the port were up 20 percent Over 1985. We re in an cup Ort Boom agreed Ronald b. Gottshall. He is managing director of the trans Pacific westbound rate agreement a rate Selling Confer ence that includes 14 of the largest ship Ping lines serving the West coast and Asia. He said he expects exports across the Pacific by the end of this year to be up As much As 15  some West coast shipping officials Are not As enthusiastic As others about the Rise in exports. And they say there is no indication hat the nation s Large bal Ance of payments deficit will he Nar rowed substantially soon. Although . Manufacturers appear to be Selling More goods abroad imports Are still filling american piers on the West coast. Ken Mclaughlin director of inter modal marketing for the port of los an Geles said that exports of containerized cargo through that port the West coast s busiest were up More than 11 percent during March and april. But unfortunately he said the Fig ures show hat inbound shipments were up by More than 20 percent during the same period. Investor s guile q. A company in whih i own Stock has bought Back i urte number of its Hans through a Stock repurchase program Orr the jul year. Pm the company All t Stock Faour meeting far fete on nil Issue that mag Bunot be in Ike Bat intern of stockholders and vote Thott Rthur Cloud him for or against that Issue a. The Short answer is no. Most companies hold stockholder meetings annually and can Call meetings More often. But repurchased Hock cannot be voted at stockholder meetings. Only Stock that is issued and outstanding owned by Stock Holden is entitled to Vole Al Hose meetings. Also Only issued and outstanding shares receive dividends. Shares that have been repurchased by u company become Treasury alack neither entitled to vote nor to collect dividends. Each share of issued and outstanding Stock rep resents a share of ownership in the company. Treasury shares own nothing. Nor do authorized but unissued shares Sharei authorized by the company s charter but never issued. When a company buys bade Sony of its Slock each than that remains issued and outstanding represents larger ownership. So your company s repurchase pro Gram has resulted in you owning a bigger piece of that company. The Craion usually Given for a repurchase program is that the Stock s Price in the marketplace is lower than what company management considers the Stock s underlying value. That reasoning of course is always open to argument. However when companies Are flush with Cash they often Institute repurchase programs q. The Lap Brut of a rom puny to which 1 am a stockholder if taking Over by buying Oul ail Nelber Stock holders i consider Hill an involuntary conversion. It ii my understanding that if put the full amount of Money i receive for my shun into a like kind of investment within 60 Days i won t Lute to Par any us True a. False. Sorry about that. Your understanding is Way off base. Your profit on the Sale of your Stock will be subject to tax As a capital gain. Involuntary conver Sion Means the loss of properly from destruction theft. Seizure requisition or condemnation or the Sale or Exchange of property under threat of any of those conditions. Without knowing the details of this particular buy out it certainly could not be accomplished without the affirmative vote of the majority of the company s Slock in the imperfect world of corporate democracy that makes it voluntary. Technically you Don t have to sell your shares Al the Price agreed to by the majority of stockholders. You could sue for an appraisal a tune consuming and expensive procedure. In practice it s almost always better to take the buy out Price. In a Case such As this when the top company s management people become owners of virtually All the Stock the company is reorganized and Small share holders who refused to sell Are left in limbo. They have absolutely no voice in corporate affairs and receive no dividends. Q. In a newspaper tabulation i noticed one company with a $1.10 dividend and $3.20 per Mbaie earning. Four quarterly dividends of �1.10 equals s4m More than the earnings. A second Slock shown do dividends and$1.37 earnings. Why these discrepancies a. The dividend column shows the amount paid annually. The first Slock pays 30-cent dividends quarterly for a total of $1.20 a year. The second Stock pays no dividends. It s a rare thing for any Slock to pay annual dividends equal to its per share earnings. Most companies pay out part of their earnings As dividends and keep the rest of the Money to expand their operations. Through the Purchase of new factories equipment and such other companies pay no dividends and plough Back All of their earnings with the intention of Mak ing their business grow. And in some cases companies need every dime they earn to stay afloat. King Flur cd trim do to water rat Kritun que toot. But in ctn provid inv Man Only trough it column. You can win to him in cd Asin we