Business world
By Nick Pisani
Our financial future
Capitalism is the mainstay
of much of the world's
economy. Even the Soviet
Union, whether they admit it
or not, has created the
Eurobank organization with
which to invest in bourgeoisie
capitalistic businesses. In
short, capitalism is a proven
ideal that works; its major
component is companies
whose philosophy is to max
imize profits, and minimize
losses; for those people who
invest in companies that
materialistically follow this
ideal, the reaping of
dividends and other high
returns can be realized.
Unfortunately, we are not, I
repeat,- not equipped with a
crystal ball that can enable us
to see into the future and
predict when to buy a stock,
and when to sell it, because
magic does not exist, and this
is not Star Wars! However,
there are many people who
dedicate their lives trying to
predict business trends so
that investors have a better
chance of making money, in
stead of losing it. There are
many that are accurate.
In the past two months,
many leading economic hen
chmen from such pseudo
financial conglomerates as
Merrill Lynch have predicted
that the Dow would dive
below the 800 mark. It has,
and it seems to be hovering
around this figure. Certainly,
things could not get much
worse, in fact, a predicted,
and sorely needed rebound is
in sight. With falling interest
rates, and Paul Volker's tight
money supplies being realiz
ed, major banking and finan
cial execs predict a sharp
spring rebound, with the Dow
reaching a possible high of
1020.
Perhaps, it sounds a bit far
fetched, but it should happen.
Those with faith and op
timism, be prepared, if you
dare, to reap a bountiful
harvest of money in the com
ing months (but, don't curse
yourself come tax season
next year!).
The best returns will pro
bably be realized in the high
tech issues: reverred as the
"darlings" of Wall Street a
mere six months ago, these
stocks have recently gone
below their all-time lows; in
some cases, their market
value has been cut in half.
The oils have faired no better.
Mobil, the second largest cor
poration in the world, is sell
ing at around twenty a share.
But, unlike the high tech
issues, there is no relief in
sight. With projected oil
prices expected to plummet,
and an oil glut in the works,
these stocks will probably
stay where they are.
In other issues, U.S. Home
(11), the largest home builder
in the country, and controlled
by the French conglomerate
Phenix, is selling at an all
time low. You can expect to
see a rebound in housing con
struction soon. All hospital
management issues, ie
Hospital Corp. of America,
Humana, are involved in a
recession-proof service in
dustry. Whether times are
good or .bad, people still get
sick, thus providing these
companies with guaranteed
customers now, and in the
future. These stocks are
highly recommended because
of their low selling prices. In
the Transportation index, two
airlines have survived
deregulation with flying col
ors (no pun intended): Delta
(28), and U.S. Air (14); both
are selling at discounts. With
so many stocks selling at ir
resistible discounts, it is hard
to ignore the possible rewards
one can receive for investing
in such companies.
But, perhaps investing in
such "stable" stocks as those
I have mentioned, is not in
your "bag." Maybe you
prefer a bit more speculation
in your investing; I know I do.
I am particularly intrigued
by those small, speculative
compahies with explosive
growth potential: Welber
(21), data communications;
Triad Systems (18), com
puter peripherals; and,
Flight Transportation (8),
flight simulation systems. All
three companies are selling
at ridiculously low prices too
irresistible to ignore. Each
company is in a specialized
industry where competition is
low. Personally, I like four
highly speculative issues in
particular: Teleflex (17),
which makes everything
from noncorrosive specialty
coatings to nuclear reaction
cores, is especially recom
mended because of its
recession-proof balance
sheet; Aydin (18), a produder
of highly sophisticated com
munications, and microwave
systems, is attractive
because of an increasing
number of government con
tracts, and a high backlog of
unfulfilled orders; Charming
Shoppea-- (9), the operator of
Fashion Bug women's
speeialtyshoPs that has had a
32% compounded growth in
net income for the past ten
years; and, AM Cable TV In
dustries (5), a cable televi
sion equipment-and construc
tion concern that has grown
so fast that it has not been
able to fulfill all of its orders,
but is completing construc
tion of two plants in Penn
sylvania, and one in the
Philippines. Its shares are
selling at 1 / 4 their high of
twenty last year.
Whether you look over
these stocks, or others like
them, let me say that they are
all POTENTIAL gold mines;
but, looks can be deceiving.
They are very speculative.
Yet in the words of the im
mortal Alexander Pope: "Of
all sad words of tongue and
pen, the saddest are these: It
might of been." These stocks
may, or may not make it. I ar
rest my case.
Enough for now on in
vesting. Let me mention the
events that have become ma
jor issues in the business
world, in recent weeks.
Smithkline Beckman (62)
recently completed its
previous announced billion
dollar acquisition of
Beckman Instruments, "...a
marriage made in heaven,"
accordingly to one industry
analyst. Marathon Oil is now
a subsidiary of U.S. Steel;
price: 6.8 billion dollars. Coke
has made a marriage pro
posal to Columbia Pictures at
78 a share. Rockwell Interna
tional has - come under
government scrutiny by
NASA for , allegedly
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overstating its expense ac
counts with regards to the B-1
bomber • contract it received
last year. Pabst Brewing
(Blue Ribbon Beer) received
a $l6 a share takeover offer
from 'C. Schmidt & Sons, of
Philadelphia, and. told
Schmidt to stick its offer, in
plain ordinary words. Pabst
is presently fighting a proxy
battle with Minneapolis in
vestor Irwin Jacobs, and has
agreed to acquire small Pitt
sburgh Brewing. Perhaps, it
is a bit confusing, even to
Pabst chairman William
Smith. Seagrams Ltd. (V. 0.,
Seagram 7 Whiskey) was
rumored to be talking
takeover with Gillette.
Heublein (Smirnoff Vodka,
and Kentucky. Fried Chicken)
is fighting a hotly-contested
battle to ward off amorous
General Cinema's takeover
fever. And, finally, Bendix
bought 5.5% of financially ail
ing RCA's common (just for
investment purposes only,
you understand). With in
terest rates plunging, expect
to see more corporate
mergersin the future.
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Pac4tial tops electric goes
By Alan Smith
All-American as hot dogs,
baseball, and apple pie, PAC
man has become one of
America's favorite electronic
games since its inception in
August of 1980. With over
100,000 games sold by the
midway company, the trend
of playing PAC-man is
reaching new heights every
day. Yet what is it about play
ing PAC-man that is so ap
pealing?
Ron Swayer, a daily PAC
man player, sees the game's
challenge of man against
machine as a strong attrac
ting force. - "lt's like being
slapped in the face and
challenged to a duel
everytime you drop in a
quarter." Bob Tier, also a
veteran PAC-man player,
feels the cuterfess of the game
attributes to its popularity.
Lacking the war and destruc
tion themes of so many other
electronic games, PAC-man
attracts males and females of
all ages.
Whether its the challenge
or just the cuteness, Speedy,
Blinky, Inky, and Clyde will
be doing their half-time per
formance for quite sometime.
' 4 1
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