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Publication: European Stars and Stripes Sunday, March 24, 1991

You are currently viewing page 18 of: European Stars and Stripes Sunday, March 24, 1991

    European Stars and Stripes (Newspaper) - March 24, 1991, Darmstadt, Hesse                                Page 18the stars and stripes sunday March 24, 1991money matter analysts downplay Brazil Pla Coffee Price hike seen several cups Down the Road new York apr if fears of an open style Java. Cartel put Clouds in your morning Coffee relax. But be prepared for possible Price increases several cups Down the Road. A. A. A a a a a v. Brazil the worlds largest Coffee producer announced thursday it was suspending Coffee exports and was seeking to rebuild an International Cartel that. Would fix raw bean prices. That Marks a turnaround front two years ago when Brazil refused to accept a smaller Export quota so other producing countries could ship More Beans. The Price support system then in place collapsed and sent raw bean prices plummeting. A major Northeast supermarket Chain said that several . Roasters were prepared to raise prices if Brazil follows through with its commitment. Hut several Coffee commodity analysts said brazils stance does no to amount to a Hill of Beans. \ a a the  not change the physical reality a said Arthur Stevenson analyst with Prudential securities inc. A the physical reality is there Are plentiful supplies of Coffee in major consumer markets such As Western Europe and  analysts also doubted that Brazil would agree to a i other co fee producing nations demands that it accept a smaller Export quota. If the suspension holds and Brazil re establishes an International Coffee Cartel resulting Price increases in the supermarkets probably will be minimal and wont take effect fur some time they said. For Consumers the Price increases could mean up to. 10 cents More for a typical 13-ounce can of Coffee said a Coffee buyer at a major grocery Chain. The buyer also said any retail Price increases would be less pronounced in so called a a super Premium a cof fecs which currently Cost roughly $5 a can compared with $2-$3 a can for regular coffees. These Premium priced coffees already reflect the expense of buying higher priced Beans. V analysts scepticism intensified Friday when Brazil apparently moderating its stand said it could soon reopen registration of sales contracts abroad to meet emergency needs of brazilian growers and exporters. A this is All raising concern the brazilian offer Isnit completely aboveboard a said Sandra Kaul Coffee analyst for Shearson Lehman Brothers. Traders on the boor of new Yorkus Coffee sugar and Cocoa Exchange bid on Coffee futures on Friday. That scepticism was reflected in the Coffee futures Market which provides the Early indications of Price changes that eventually show up at the supermarket. After opening Friday with a surge in Price the contract for May delivery of Green a roasted Coffee on new York s Coffee sugar amp Cocoa Exchange fell for a net loss of 1.95 cents a Pound closing at 93.05 cents several factors were expected to insulate Consumers against Price hikes. . Roasters Are stocking record amounts of Coffee purchased at prices fixed a year ago. Stevenson said the stockpile totals about 6.4 million bags each containing 132.3 pounds of a roasted Beans in addition the Price of a roasted Coffee Beans is just one component in a total Coffee Price that also in eludes processing shipping and marketing costs. A we could find this is a tempest in a Teacup a said Stevenson. A it Means there need not be an immediate anxiety on the part of Trade to the brazilian  Stevenson said the brazilian suspension would have., to last at least three to four weeks before its effect is Felt on . Prices. Proctor amp Gamble co., maker of folgers Coffee would Only say it was closely watching the brazilian suspension and had not decided any Price strategies yet. A we cannot react to a hysterical Market going in All directions at once a said or. Leon Pordy chock full of nuts corp.  Page 17. Years ago by a group of military people. That fact struck a receptive chord with a Wjk associates which started with five Active duty military men. Since its formation the club has added four airmen and the wife of one of the members. Only half of the members Are stationed at Alconbury three Are in Germany and two arc at stateside bases. When picking companies they want to buy shares in this club does no to miss a trick a we look for people on the ship like the directors making sure that they own shares in the company themselves because then  have a vested interest in something that their Money is lied into a Johnson said the club also likes companies that Are International in scope. Companies that rely on sales abroad for a portion of their Revenue wont be so susceptible to a Down Trajn the . Economy the club member reason. Ruffins said the club likes Johnson amp Johnson the pharmaceutical company for that reason. The company recently became Active in Poland. Normally the club invests a set amount of Money per member every month. But about 2kh months ago the club invested nearly $4,000 Iii one afternoon despite Bleak forecasts of recession in the slates at the time. It put $2,000 in a Safe Money a . Government Bonds that done to depend on the fluctuating Stock Market $500 in a Money Market fund $590 into two German companies that Trade on the Frankfurt Germany Stock Exchange and smaller investments in the Kellogg co., Huntingdon Bank american family corp., and foreign and colonial european investment Trust. At this stage each club member contributes $25 a month to investments but the group is looking to increase that to $100 a month. Club members figure bigger monthly contributions will bring them closer to their goal of one Day haying $1.5 million in assets. Ruffins and Johnson said they figure the club has a Chance to hit that lofty goal within five to 10 years investing via a club has its advantages Ruffins and Johnson said. Individual contributions Are kept to a minimum yet the club As a whole is Able to invest $250 every month and share the  addition the club members can share the workload. In a Wjk associates Ruffins investigates overseas companies Johnson does stateside companies and Ralph Kirk a member stationed stateside checks out fixed income  Are some other tips offered by Johnson and Ruffins that have proved successful for their club a look for companies that offer a dividend. Reinvestment plan. Such a plan eliminates the need for a broker and the commissions they charge. A make use of free services available to service members such As utilizing investment related literature in base libraries and getting advice from lawyers in military Legal affairs offices. 1 a we figure being in the military probably saved us $5,0011 to $6,000�?� in administrative and other Start up costs to get educated develop resources and draw up Legal documents. Johnson said. Some individuals will spend a considerable amount of Money to get subscriptions to almost any and every publication that could prove helpful. A but the Library has so much information to offer. You a be surprised How much you can find out by going to the Library and picking up some of their business publications a Ruffins said. A whether you join an existing club form a new one or invest on your own diversify. Take risks with the Stock Market but also go with a Safe Money a banking on investments you re sure of. Part of a Wjk associates Money is in . Government Bonds. A if you re starting a club get everything Down in writing a even if its a group of trusted friends. Its Only prudent to put agreements in writing a so. There a no misunderstandings or misinterpretations a said Johnson. Other club members include staff sgt. Reginald Johnson of Sembach a Germany tech. Sgt. Kevin Burton and his wife Cheryl Burton both of Lindsey air station in Wiesbaden Germany tech. Sgt. Kirk of Myrtle Beach fab . Master sgt. Myron Jones of Scott fab i. And master sgt. Michael Hunte tech. Sgt. Allen Watson and master sgt. Kenneth Pitts All of Raf Alconbury  
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