Hhanrhrstrr Irralh Manchester, Conn

20 - MANCHESTER HERALD, Saturday, Oct. 8. 1983 BUSINESS Why MHS 'smoking ban Conard the big contest Beatles now would have been wrong for Manchester football college topic Business Market message .. page 6 ... page 15 ... page 3 In Brief Economic rebound losing steam MAJOR RETAIL CHAIN^ If you look Beyond the performance of the Dow They’re a safe secure haven for money right now, SEPTEMBER SALES Jones Industrials, the overall stuck market has been -says Kisor. anything but a roBust performer in recent weeks. In contrast, Kisor sees an average total stock return % increase from In response to favoraBle money supply figures, low of about 10 to 12 percent over the next 12 monthi September 1982/ inflation numbers and drops in interest rates, Dan Dorfman (roughly 6 to 8 percent capital gains and 4'A percent Fair, cold tonight; Sears Roebuck & Co. 27. enthusiastic investors will immediately Bid up stock yield ). Manchester, Conn. prices. But the flurry is short-lived and profit-taking Syndicated Though oBviously down on the stock market, Kisor cloudy Tuesday Monday, Oct. 10, 1983 K mart 8.8% quickly sets in. says there are always oportunities to make money. How come? Why the lack of follow-through?' Columnist And his strategy; Vou’ve got to take a "rifle shot"" — See pape 2 Single copy: 25$ The answer: Growing suspicion on Wall Street that approach — meaning individual stocks rather than' HHanrhrstrr Irra lh J.C. Penney 5.1% the widely-heralded economic recovery that eve industry groups. ryone’s been projecting will Be a lot less peppy than The chief focus, in his mind, should be on high Federated most folks think. 13.8% (2) high financing costs and (3) continued lackluster earning visiBility, and even more importantly, Department Stores In fact, that very worry recently led one of the export activity (which crosses about 10 to 20 percent of earnings predictaBility; in other words, you've got to nation’s leading banks — the Comerica Bank-Detroit the economy) as a result of an ongoing strong dollar. Be reasonaBly assured of a good earnings stream Woolworth & Co. 7.1% (formerly Detroit Bank & Trust) — to unload $250 Kisor’s convinced that consumer spending will lose almost regardless of any economic slowdown. Americstp^ million worth of stocks. a substantial chunk of its earlier zip in the months Moreover, the fella who runs the investment assess Dayton Hudson Corp. 23% ahead. HISTMVE FAVORITES in this context: Philip there ($4 Billion worth) tells me that common stock For starters, he points to the low saving rate — Morris, Walgreen, Monsanto, Fleet Financial and ^Reactions w ins Nobel have Been chopped to just 25 percent of every ne^ Below 4 percent in the second quater of ’83, the lowest Pfizer. Montgomery Ward 16.2% dollar of cash flow (aBout $10 million a month). level since 1950. In terms Bf smaller, but faster growing companies " I ’ve taken $250 million out of risk,” says chief\ Kisor also expects a slowdown in the growth of (with prospm s of annual earnings gains of 20 percent investment officer Buck Kisor, Jr., who thinks there’s ^esonal income — from 8 percent in the first half to, or Better), live companies stand out on the Bank's in medicine now a 20 percent chance of a suBstantial market ^y, 6 percent in the second half. most favonM list. decline over the next six months. Ijs reasoning: Slowing employment gains and They a ^ H B O , a specialist in hospital information STOCKHOLM, Sweden (UPI) - Relating that in specific numBers. Buck, who has varied as BarBara McClintock, an 81-year- Retail sales rise continued pressure on wages Because of the ongoing systems; iNewport Corp., a maker of components for outperformed the market the past five years and is lasers in electro-optical research; Network Systems, old American Botanist, won the The nation's retail chains reported a solid rise high level of unemployment. repeating that showin^his year (the averge account 1983 NoBel Prize in Medicine today in SeptemBer back-to-school sales Thursday even " I tmnk the Street is slowly coming to my a specialist in data communications; Dreyer’s Ice is up 22 to 24 percent), thinks the Dow could tumBle to (or her landmark genetic discov after unseasonaBly hot weather derailed tradi vfew...tHat we seem to Be swinging to a saddle-shaped Cream, aAVest;Coast producer of premium ice cream, 8 the 1,000-1,050 range. That’s about a 200 to 250-point and Stryker Corp., a manufacturer of specialty ery three decades ago of "jumping tional fall Buying in the first two weeks of the recovery,” says Kisor. drop from current levels. medical devices. genes” — a major stride in the 0 month. Analysts said the reasonaBly strong Saddle-shaped, as he defines it, is'up, down and up The thrust of Kisor’s Bearish thinking: The understanding of cancer. showing at the cash register indicated the agair' The bank is also increasing its holding ih foreign ; Watt quits economy, following a super second quarter gain in the NoBel officials said her Break consumer recovery that developed early this stocks. The chief reasons includesigns of an economic gross national product of 9.7 percent, will slow down through was “ the second great year is still on track and should continue to Bolster TRANSLATED INTO NUMBERS, Kisor sees GNP pickup aBroad and the Benefits of lower foreign more than -expected Because of continuing high currency translations. Kisor figures that the dollar discovery of our time” in genetics. the ecomomy. growing at a 4 percent rate in the fourth quarter (less By United Press International Be answered is whether the as interest rates. may come down a Bit in the face of a slight easing of It went virtually unnonticed until than half the second-quarter growth rate), rising 3 saults on our environment will." In fact, Kisor sees the possiBility of an actual GNP interest rates — which should help foreign corporate the mid-1960’s when it Became percent in the first half of ’84 (with one of those Environmentalists cheered the William Turnage, executive di decline in either the first or second quarter of ’84. earnings. But as mentioned earlier — Because of that crucial to understanding tumors, Sikorsky to build plant quarters showing a slight decline) and expanding news of Interior Secretary James Kisor, at one time director of investment strategy at Big Budget deficit — he expects U.S. rates, in rector of the Wilderness Society, viruses, and infectious disease. slightly to a 4 to 5 percent rate of gain in ’84’s second Watt’s resignation but worried his MONTGOMERY, Ala. — Sikorsky Aircraft, a Paine WeBBer, figures that interest rates, at most, comparison to foreign rates, to remain high. called Watt the worst of any of the Dr. McClintock — the first half. policies will remain in place with suBsidiary of United Technologies, will soon will drift about 100 Basis points (or 1 percent) lower 43 secretaries of the interior in woman ever to win the NoBel Prize The Big market proBlem, as Kisor sees it, is that The Bank’s five favorite foreign securities: Ho construct a J2(Pmillion plant in an east AlaBama over the next 9 to 12 months. the Blessings of President Reagan. United States history. in Medicine alone — was not while a 4 percent gain in fourth-quarter GNP is Yokado, a large, diversified Japanese retailer which city that will employ about 250 people. His reasoning for only a modest drop: Continued Conservatives were somBer and Rafe Pomerance, president of immediately availaBle for com respectaBle, it’s insufficient to generate the very also oeprates 7-11 and Denny's units in Japan; Officials with United Technologies, Based is concern over the huge deficit (which is likely to offset others said the step was inevitaBle. Friends of the Earth, called Watt ment. Colleagues at the Cold large earnings gains that are needed to support a lot of Fujitsu, a leading Japanese office equipment and Connecticut, said construction will Begin on the the favoraBle inflationary numBers.) Watt announced Sunday in Santa "the most anti-environmental se Spring HarBor LaBoratory in Long stocks in view of the sharp runup in equity prices. electronic component maker; Broken Hill Proprie ' Ynez, Calif., that he was quitting. 90,000-square-foot facility in Tallassee early next Everyone knows government spending is too high cretary of interior of the 20th Island, N.Y., said she wanted "as And so while he sees a shot of a Big market selloff, he tary, Australia’s largest natural resource company (a He read aloud to reporters from year. and that the Budget has to Be cut, But Congress — century.” but said: "The general little fuss as possiBle.” thinks his economic scenario — which, he reiterates, play on the pickup in the world econom y);. L.N. the letter he wrote President Production of composite products for various especially with an election year coming up — lacks the in charge of Ronald Reagan's war "She’s out on her nature walk, growing numBers of Wall Streeters are suBscribing to Ericsson, a Swedish maker and marketer of Reagan that Began. ’’Dear Mr. aerospace applications is scheduled to Begin in political will to do it, says Kisor. NoBody want to have on the environment may Be gone, picking walnuts," said Williani — implies at the very best, a relatively lackluster telephones, and Novo Industrl, a danish drug firm President, The time has come.” 1985. cuts come in his or her own district. ..and who’s going but the commander-in-chief and Udry, the laBoratory’s executive market performance for the remainder of ’83 and specializing in human insulin and enzymes (a He said his "usefulness to the The Tallassee plant will Be the first manufac- to vote to raise taxes? most of the officers remain.” director said of the prize winner.

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