European Stars And Stripes (Newspaper) - July 6, 1986, Darmstadt, Hesse                                Sunday july 6, 1986 the stars and stripes Page 19 business news stocks join miss Liberty Celebration by Ellen Freilich i i business writer new York the Slock Market celebrated the 100th birthday of the statue of Liberty with its traditional pc inc Pond Cnoc Day rally last week and a Dow Jones first time close above 1900. The Dow Jones Industrial average and broader Market indexes set record highs on monday tuesday and wednesday before retreating a bit on thursday. For the week the Dow gained is.6i Points ending at 1900.87. It closed above 1900 for the first time tuesday after closing above 1800 for the first time on March 20. Analysts said Stock prices benefited from expectations that a sluggish econ omy will compel the Federal Reserve Board to Cut its discount rate and nudge Short term interest rates lower. Eugene Croni jr., technical analyst at Batman Eichler Hill Richards said prospects for lower interest rates and the willingness of Money managers to invest in Quality stocks could Send the Dow near 2000 by the end of july. But he said some of the Market s conflicting trends such As the laggard behaviour of the Dow transposition Index and the abundance of new issues coming to Market will begin to weigh on the mar Ket late this month and Lead to a correction extending through september. On the trading floor Bel South was the most Active nose listed Issue rising to 6iw. Illinois Power followed up i to 26v. Itt was third jumping 4v to 58vi in the Wake of its statement on wednesday that it will receive $1.8 Bil lion for a controlling interest in its Tele communications business from the French National telecommunications company. Sanders associates climbed 4% to 55 /4. Loral corp. Began its tender offer monday at $50 per share in Cash for 10 million shares of Sanders common Stock. Sanders jumped 19 Points the previous week after Loral made an offer of $44 a share in Cash and securities. Union Carbide gained 2 to 24carbide said monday it had completed the $1.4 billion Sale of virtually All its worldwide Batter products businesses to Ralston Purina. Midland Ross jumped 7% to 28. It agreed to be acquired by Forstmann Little for $28 a share. Burroughs was the week s biggest win Ner jumping to /4 to 7ivi after Michael Blum meal. Chief executive officer of the merged Burroughs Sperry outlined a favourable earnings picture. Among other actively traded Blue chips. Ism added 2 to 149. At to cased to 25, . Steel lost % to 20v, and Sears lost it to 48 a. Quaker Oats Rose 5 i to 83v and pc Sico a Decd i it to 35. Overall 1.135 issues posted gains while 759 showed losses among the 2.164 issues traded. The Dow transportation average edged up 0.25 to 777.75. The Dow Utility average added 1.98 to a record 200.76. Standard & poor s 500-Stock Index climbed 2.19 to 252.70 the new York Stock Exchange composite Index Rose l.49to 144.67. Things won t be the some for next Gonnett chairman los Angeles times Washington on May 20. Allen h. Neuharth explained his Deci Sion to step Down As chief executive officer of the Gannett co. This Way we think the band is playing. It s a Good time to change the guard though he mixed his metaphors Neuharth 62, did relinquish the title of chief executive at America s biggest Media company in a moment of Crescendo. Only the Day before Neuharth had announced the acquisition of the Ven Erable Louisville courier journal in Kentucky. In the previous 12 months. Gannett also had bought the pcs Moines Register the Detroit news and Gannett officials say it made a serious offer to buy lbs. In the process Neuharth also had cast off the stigma of Gannett As a company that made big profits in Small newspapers. Yet to some insiders there is 9nc instrument at Gannett the most important one of All. That is not yet in tune and that made Neuharth s timing curious. I m amazed that he stepped away from Usa today before it has gone into the Black said one source familiar with the company s operations refer ring to the company s National newspaper in 3 a years Usa today has lost an estimated $311 million and could lose $50 million to $80 million again this year Industry Anai Jau say. Few believe that Neuharth who re Mains chairman has relinquished final authority at Gannett. By naming president John j. Curley. 47 As Chiet executive insiders said. Neuharth merely formalized a situation already in place in which Curley runs Gan Nett Day to Day while Neuharth con Cerns himself with Long term planning and acquisitions. Yet Curley s Elevation does put in place an heir apparent. That could prove important if Usa today on which Neuharth has staked much of his prestige fails to make a prow. Whatever happens Curley will in Herit a company drastically different from the one Neuharth took on As president in 1970. That year Gannett owned 33 daily newspapers. The Rochester . Democrat and chronicle with a circulation of 129,000, was the largest. Today Gannett owns 91 newspapers with total circulation of 5.7 Mil lion eight television stations. 15 radio stations and the nation s biggest billboard company. It employs 29.000 people. In 1985. U earned $253 Mil lion after taxes on revenues of $2.2  is a company with which Wall Street has fallen in love. While most of the newspaper Industry posts pre tax profit margins of about 15 per cent most Gannett papers come in at 20 percent to 30 percent. Gannett Overall usually tops 20 percent before Neuharth also has taken risks other publishers have not. He believed that americans would pay More for news papers than tradition dictated and Gannett papers now sell for 30 cents or 35 cents while most newspapers Are still a Quarter. He foresaw that newspapers would soar in value and Gannett has grown because it has been willing to pay More than Many had thought Pru Dent. One reason is that Gannett has the wherewithal to wait four or five years to recover its investments. Gannett s traditional strategy was to buy the Only newspaper in smaller cities set strict profit goals raise advertising rates and Cut costs. Because its Parent corporation was Able to Purchase newsprint in huge Quanti ties a  purchased Gannett paper often could save 10 percent to 15 percent on one of its major costs immediately. Where a newspaper had separate morning and afternoon staffs Gannett usually combined them. In every Gannett town where there is a second newspaper Gannett arranged or inherited a joint operating agreement to share profits and Stop Cor sneling financially with Gannell in charge of the joint operating Agency. Big Board volume in the Holiday shortened week totalled 541,003,120 shares compared with 684.069,240 a week earlier and 368,027,980 during inc same week a year ago. Comp Silc volume for the week was 637,568,240 shares compared with 814,021,120 a week earlier. The american Stock Exchange Index Rose 1.46 to 284.59. Winners outpaced losers 411-356 among 917 issues traded. Volume was 46,749,795 shares com pared with 63,161,660 the previous week and 23.952,340 during the same week a year ago. Wicks led inc amex actives edging up i to 6. . Industries followed rising /4 to 6 i. Lorimar telc pictures was third falling i % to 29%. Investor s guide by William Doyle q. You have been telling readers not to invest in Mutual funds with 12b-l. Plans for a number of years. I guess i did t pay much attention to your warnings. Now i realize i should have. Recently two magazines said to steer Clear of such funds. My financial adviser has put my invest ment into a Mutual fund with a 12b-l plan. What s in it for him should i re deem my shares of that fund and Start Over a. It s impossible to say exactly what s in it for your adviser because the details of i2b-l plans vary widely amors different Mutual funds which have those infamous arrangements. The Odds Are Long however that the i2b-l plan of the fund the adviser put you into will provide him with fat com missions. The really outrageous thing about 12b i plans is that the . Securities and Exchange commission allows some Mutual funds with such plans to promote themselves As no Load funds be cause there is no commission charge taken out of investors Money at the time they buy shares. But. Each year after that Money is taken out of the fund s assets and paid to investment advisers brokers and other Sellers of the funds shares. This is Best described As a hidden commission scheme. Annual charges can be As High As 1.25 percent and can Cut into the value of each shareholder s investment. For example if you invested $10,000 in that Mutual fund the i2b-l plan can Cost you $125.50 a year in addition to the fund s operating expenses. And it s a continuing Cost. You la save expenses by redeeming the shares of the fund you now hold and investing in a True no Load fund. Q. How can i find out if a Mutual fund in which i am considering investing is a Load or no Load fund has a 12b-l plan or a redemption fee i get a smile when you describe a redemption fee u a rear end Load a kick in the investor s  a. Read that Mutual fund s prospectus very carefully. A prospectus is a disclosure document in which pertinent info Malion must be revealed. Sometimes gelling All details of costs is a hard . It is often stated that the Success of a Mutual fund primarily depends on the skill of the fund s manager. How is it pos sible for an investor to slay informed on changes in the management of a fund whose shares he owns a. It s virtually impossible for the average shareholder to stay a courant on every management change. Mutual fund presidents., vice presidents portfolio managers and other Stock pickers change jobs with reasonable frequency. Unless a fund executive making a switch is very Well known it s Seldom noted in the press. However when a Mutual fund changes ils invest men advisory con race share holders Musl approve the new contract by majority Vole. Q. Because of fears about terrorism fewer americans will go to Europe this summer. Will this reduction in tourist dollars in european countries make inter National Mutual funds risky investments a. I d count that As unlikely. As the term implies International Mutual funds invests in foreign stocks. The major thing Hal moves the value of foreign stocks is the Rise and or fall of our Dollar. When the . Dollar declines against overseas currencies the values of foreign stocks go up. Because that s been the trend for More than a year International Mutual funds have done quite Well. Without going Loo far out on a limb i d have to say there s no indication our Dol Lar is going to shoot up in foreign Exchange dealings in the near future. For abut is can prov lds Antowan Only a Routi via column. 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