BUSINESS 4= Lifeguarding Eosyl War Against ^ ^ —R-• at Verplanck Poo/ Arson Flares the Technology Gome: Small Is
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20 — MANCHESTER HERALD. Frl.. July 16. 1982 i. -■•i BUSINESS 4= Lifeguarding eosyl War against ^ ^ —r-• at Verplanck poo/ arson flares The technology gome: Small is ... page 11 ... page 20 Quick now, which stock group is likely to suffer the the various markets — were also explored. On average, the two analysts tell me, each of the Tomorrow’s hot technology plays *‘2 most in any further market decline? chosen companies has the potential to turn in annual You’re on the money if you picked technology. earnings gains of 25 to 35 percent a year over the next That, at any rate, is the view of some savvy Wall ' r RECENT ta r g e ts three to five years. PRICE PBICjK Hazy sunshine, Manchester, Conn. Streeters — given sharp cutbacks in capital spending Primary fields include the ihanufacture of telecom (the mainstay of the technology business), softer than Analogic Corp. 25 Vt Saturday, July 17, 1982 munications and computer peripheral equipment, com Electromagnetic Sciences 12 Vt hot and humid expected earnings because of the ongoing recession and puter software products and services and medical in the fact that most technology stocks sport higher-than- DBA Systems 14 H Single copy 25(t strumentation. Electronics, Miss. & Comm. 10 V<i 2K — See page 2 average price-earnings multiples. 2|«* I r r a l b Yet, in the face of this widespread view, two sharp Their three favorites: (1) Intermagnetics General, Algorex Corp. 13 V* technical analysts, Richard Yashewski and Joseph which makes magnets and superconductive metals for Mathematica, Inc. 13 V* 2i-> medical diagnostic equipment, (2) Information Inter Information Int’l. 10 V* IC Barthel of the Philadelphia brokerage firm of Butcher national, producer of a computer-based electronic op- & Singer, are aggressively urging clients — mostly in HBO & Co. 22 3*: market decline and, moreover, they said that the Dow— iHical system which integrates all preparation and type SofTech 15 stitutional — to start building hefty portfolios of setting functions for the publishing industry, and (3) Analysis technology stocks. about 960 at the time — could possibly tumble to the 830- Intermagnetics Gen’l. 8 Vt 840 range in as little as four to six weeks. ADAC Laboratories, manufacturer of computerized im- Xidex (Torp.. 26 Ml iC However, it’s not the big boys they’re recommending ageprocessing systems and accessories for nuclear (such as Digital Equipment, Perkin-Elmer and Cray It was near-perfect forecasting, as the Dow skidded to ADAC Laboratories 20 % 3«; Research), but rather the peewees (the likes of Surival 824 by late September. diagnostic tx^y-imaging. Valleylab, Inc. 19 V* Technoiogy, Mathematica and Ask Computer Systems). In that very same July ’81 interview, Yashewski and In recommending emerging technology stocks, the National Micronetics 13 V> 26- Gulf war 'Family' As the technical duo sees it, their work indicates that Barthel also came up with a list of what they regarded two analysts flash a couple of warning signals. For one Network Systems 17 % 3(£; the emerging* technology stocks will be the stock as the 20 riskiest stocks on the Big Board. They thing, many are unseasoned companies that are spen Tandon Corp. 32 market's single hottest performer over the next 12 to 18 predicted an average decline of at least 30 percent of ding above-average amounts of capital on research and Unitel Video 6 % months — racking up individual gains of at least 50 per their selections (14 of which were in the technology development. So obviously there’s well-above average Ask Computer Systems 16 2P still has field). risks if any of their corporate fortunes turn sour, Codis Corp. 24 V« 4£ cent, and, in many cases, over 100 percent. Secondly, while the two analysts think their selections "We see these stocks under definite accumulation, " It turned out to be another super predicting job. All 20 Survival Technology 9 20i 'stalemate' are likely to be “super performers,” they also believe Yashewski tells me. "They’re hanging tough. On stocks took a drubbing — with the average decline run Recent price equals The over-the-counter quoted balance, they’re not getting slugged like the big names ning 41 Vz percent. In the same period, the major they’ll be late starters. Any strong advance in the junior bid price. contests technology ranks, they feel, will have to await both the difficult to assess action on the (such as Data General and Computervision) — but market averages fell between 13 and 16 percent. By Sajid RIzvi On tbe basis of those two marvelous predictions — final sell-oxf of the big-name technology stocks (which Target price equals 12 to 18 months. rtkSi ground, U.S. intelligence sources in they’re traveling sideways .. which is invariably a sign United Press International of strength in a bear market.” plus some other excellent market calls — our two they believe are vulnerable to another 10 to 15 percent Source: Richard Yashewski, Joe Barthel o£;; Washington said the 22-month-old technicians, at the very least, merit a respectful decline) and the wrap-up of the bear market itself. They Butcher & Singer, Philadelphia war that has now shifted into Iraq By Paul Hendrie Why, you might wonder, shouid anyone heed the in Iraq said it launched another Herald Reporter vestment advice of Yashewski and Barthel? hearing. also expect the initial market strength — given an end to pi’Mt major counterattack against the was still “basically a stalemate.” In scoring the over-the-counter market for the best the bear market— to be focused (as is usually the case) The answer: Only if you like riding with a couple of Iranian army Friday and claimed to They said the Iraqis had managed HARTFORD — You would have technology bets, Yashewski and Barthel came up with on the blue chips. have destroyed 75 percent of the thought Connecticut Democrats hot hands. 20 names. (See accompanying chart for specific selec “What we’re recommending is for accumulation, not to push back an Iranian advance The last time I caught up with this technical twosome enemy’s armored forces and moved towards Basra, Iraq’s only Persian - were one big happy family Friday was in mid-July-of *81 (just about a year ago). At the tions and projected price targets.) They were primarily for instant gratification,” Yashewski says of the peewee another sharp decline that should knock the Dow do{& the war back into Iran with air- night, as they opened their state chosen on the basis of their technical strength (essen technology plays. to the 750-780 range by November. And after that — Gulf port, but that the Iranians have time, they stuck their necks out with some bold strikes against the city of Hamadan. regrouped in two main armies north convention with the predictable forecasting (the kind that could make you easily wind up tially stocks that showed clear signs of being under ac As for the overall market itself, the two analysts see kind of news we’ve all been waiting for. ^ Iranian ruler Ayatollah Ruhollah salutes to tlieir ghosts of the past: cumulation). However, fundamental considerations — an imminent “summer rally” which should boost the “By the time Santa comes to town,” Yashewski sam and east of Basra for a major with egg on your face). Khomeini, his troops reportedly assault expected over the weekend. Roosevelt, Kennedy, Dempsey, For starters, they toid me the market faced a severe such as earnings prospects and the potential growth of Dow to about 900 in September. Then they expect "we should have already started a new bull marketZ thrown back by the counter Ribicoff, Bailey and Grasso. offensive, issued a new set of peace “It’s basically a stalemate at the Product packaging conditions that appeared to drop a moment. Both sides have incurred You never would have guessed key demand for the ouster of Iraqi losses with no advantages gained by there remains an eight-way race for President Saddam Hussein. either side,” one source said. secretary of the state, a four-way Though conflicting claims made it race for attorney general and a two- Combat on the fourth day of way contest for governor. Multi-property plastic films “Operation Ramadan,” codename for Iran’s push into Iraq, shifted to House Speaker Ernest T. Abate fHuBCAPS the skies with reports of heavy Iraqi succeeded in winning a chance to ad Cease-fire air attacks against Iranian positions dress the convention Saturday, but promise another revolution on the Iraqi side of the Shatt al-Arab the party leadership made no secret waterway that forms part of the dis about its support of incumbent Gov. violations puted border between the two Gulf William A. O’Neill. NEW YORK (UPI) - and at least a dozen com corrosive chemicals, for refrigeration but is ideal rivals. GOV. O’NEILL, SEN. DODD AND SENATE CANDIDATE MOFFETT The extensive development panies in the United States which a strong, inert as sterile packaging for But Iraq also said its ground . march with the crowd into the Bushnell In fact, former Sen. Abraham ORShLi of multiproperty layered build machines for making material like glass is ideal, drugs, hypodermic needles reporteiJ forces resumed their counterattack, Ribicoff — in his cliche-filled plastic films promises coextruded filmt. and there are many and other medical and “contained the enemy offensive and kevnote speech - openly endorsed O'Neill another revolution in the In recent years, two products that do not hospital supplies. By Mona A. Zlade mauled the attacking force.” packaging of foods, phar companies, Composite require the extensive Etiemard said multilayer United Press International A military communique released O'Neill spoke earlier to a rally on maceuticals and hundreds Containers Corp.