HDTenEightyP/NetNews huggingface dataset:
From: chedley@carthago.intel.com (CHEDLEY_AOURIRI)
Newsgroups: misc.invest
Subject: Re: WSJ: "Many Companies Sell Securities to Bolster Their Balance Sheets"
Date: 13 Nov 92 19:50:16 GMT
Reply-To: chedley@carthago.intel.com (CHEDLEY_AOURIRI)
Distribution: usa
Organization: Intel-Corp,_Hillsboro,_Oregon

In article <BxLxwz.u8@hsi.com>, ross@hsi.com (Michael Ross) writes:
|>... 
|> O.K.  My questions ... (and pardon if it is only my ignorance that shines
|> through) ...
|> 
|> 	- Doesn't the selling of stocks and bonds imply yet new debt (although
|> 	perhaps less costly ... i.e. dividend or interest payout)?
|> 
NO.
Selling stock means raising money to pay back the debt. Thus, equity
is replacing debt on the balance sheet of the company. A major problem
of the 80's was the high rise in the debt/equity ratio of many
corporations. Now, they are reversing the trend.

Selling bonds generally means refinancing the debt at lower interest rates.

|> 	- Where is all this money being raised coming from? Are low interest
|> 	rates and some renewed optimism in the stock/bond markets shifting
|> 	funds from somewhere else?
|> 
Right.
As the debt is being retired (refinanced or payed off), the money used to
pay that debt goes back to the stock market to buy equities. Essentially,
from a macro view, companies are simply replacing debt by equity ownership:
ie. instead of lending money to a company, you now own a piece of it!!

As to whether this is a positive development, the jury is still out.
The question is really about the proper mix of debt and equity in the
capital of a company. Should it be 50/50, or 30% debt to 70% equity, or...?
Theoretical economists -some of them won Nobel prizes researching this
topic- claim that the debt/equity mix does not really matter!!! And what
is important is the operational performance of the company.

But it is obvious that in the 80's many companies went way off course because 
of the over use of leverage and debt instead of equity. They are now correcting,
and in some cases suffering because of that.

-- 
..CHEDLEY..
..!{uunet|tektronix|ogicse}!littlei!chedley    chedley@carthago.intel.com     
------------------------------------------------------------------------
Standard Disclaim: The above statements and opinions are strictly mine,
and do not represent any company or organization's position.
......................................................................
From: guido@island.COM (Guido Marx)
Subject: Re: Tokos Medical (TKOS)
Organization: Island Graphics Corp.  San Rafael, Ca.
Distribution: usa
Date: Sat, 21 Nov 1992 01:30:55 GMT

In article <1992Nov17.191446.10684@asl.dl.nec.com> alie@csl.dl.nec.com (Andrew Lie) writes:
>Tokos Medical, one of Barron's Fund favorites, takes a dive today
>(down 8 3/8). Does anyone have any news to share? Thank you.

Our local business columnist (Herb Greenberg - Buisness Insider S.F. Chronicle)
wrote a couple of articles about this company.  It seems that the FDA has
been investigating whether or not Tokos has been promoting some of its
medical monitoring devices for uses for which they have not been approved
by the FDA.  Obviously, if the FDA decides that they have, it will be bad
for the company.

Guido
From: braver@magnolia.Berkeley.EDU (Michael Braverman)
Newsgroups: misc.invest
Subject: Mutual Funds Fees - 12b-1s, in particular
Date: 19 Nov 1992 08:20:38 GMT
Organization: University of California, Berkeley
Distribution: usa
NNTP-Posting-Host: magnolia.berkeley.edu

All other things being equal, if I'm trying to decide between two
mutual funds, A and B, whose total annual fund operating expenses 
are the same, but fund A doesn't charge 12b-1 Fees, whereas fund B
does, is there any reason to prefer A over B or vice-versa?  That is,
as an investor, am I only interested in to bottom line operating
expenses (which already include any 12b-1 fees, if any), or does the
presence of 12b-1 fees have some hidden sinister consequences?

thanks for the info,

Michael Braverman
braver@cs.berkeley.edu
Newsgroups: misc.invest
From: mpb@troy.cc.bellcore.com (bunz,marcus p)
Subject: Re: Inheritance forthcoming...advice sought
Organization: Bellcore, Livingston, NJ
Distribution: misc.invest
Date: Thu, 19 Nov 92 18:16:17 GMT
Keywords: Loop Holes

In article <1992Nov13.203738.16082@src.dec.com>, pardo@src.dec.com (Phil Pardo) writes:
> 
> 
> I am expecting an inheritance soon that is in the neighborhood 
> of 10 to 15K.  Does anyone out there know of any loop holes that 
> might exist to get around the taxes that will have to be paid on
> it or if there is a manner in which to invest it before I physically 
> touch the money?
> 
> Any and all advice on this matter would be greatly appreciated.
> 
> Heres to wishful thinking!
> 
> 				--Phil Pardo
> 
> 
> 

Don't sweat it.  It's the estate that has to pay the estate taxes
(i.e., if the estate is worth more than 600,000 in total).  The
only part of the 10-15K you are expecting that will be taxable would
be any interest or dividend income generated THIS year (assuming
you get the check this year).  If the trustee got you 5% this year
(not very likely), then you'd only owe taxes on $500-$750, or at most
something like $250.00.

And, as far as I know, there's no way around it, unless you get the
trustee to lie to the IRS and tell them they didn't give you anything,
but I wouldn't expect them to do that.

Marc
Organization: Penn State University
Date: Sun, 22 Nov 1992 00:08:38 EST
From: <SXS30@psuvm.psu.edu>
Newsgroups: misc.invest
Subject: Chinese Stock Market

Source: UPI, 11/20/92
Written by: John Leicester

BEIJING -- The Chinese government has said it will allow no new stock
markets for at least three years, citing fears of chaos if new exchanges
are set up before stock laws are strengthened, an official newspaper said
Friday.

The ban on new stock markets came despite economists' warnings that China's
present two fledgling stock markets in Shanghai and Shenzhen, near Hong
Kong, can no longer cope with huge investor demand.

"The two exchanges are obviously unable to stand the strain," the state-run
China Daily quoted economists as saying.

Economists and market experts also warned that limiting exchanges to
Shanghai and Shenzhen had drained funds from elsewhere in China and "will
widen the gap between the economies of the south and the north," the
newspaper said.

"It is necessary to establish a bourse in each economic region by the end of
the century," it quoted one economist as saying.

But the government, still unnerved after frustrated would-be investors
rioted in Shenzhen in August, stated no new market will open until laws
governing stock markets are strengthened and will "refuse to open a new
stock market for at least three years," the China Daily said.

"The need to guarantee the health of the experiment became obvious after the
Shenzhen stock riot," the newspaper said.

The argument about the future of China's stock market experiment strikes the
heart of a debate about the speed at which recent calls for capitalist-style
market reforms can be carried out.

Local governments want to make use of new economic freedoms and use stocks
to raise capital for investment, but have been refused by Beijing for fear
of chaos if stock markets are not kept under central control.

Local governments, like freewheeling Hainan province in south China, that
tried to set up stock exchanges without government approval were quickly
reprimanded and had their markets shut down.

Foreign experts agreed with government statements that stock laws and
company regulations must first be strengthened and say running China's
existing exchanges more efficiently would remove the need for new stock
markets.

"I'm not sure it makes sense for a country to have four or five stock
markets," said one Beijing-based economist. "Most countries only have one."
Newsgroups: misc.invest
From: paul@panix.com (Paul Gatker)
Subject: Top Ten Stocks/Biggest Dollar Gain in Decade
Date: Thu, 19 Nov 1992 18:59:29 GMT
Organization: PANIX Public Access Unix, NYC

Top ten stocks/biggest dollar gain in decade-- all figures in billions:

AT&T/Baby Bells	$140.1
Wal-Mart Stores   67.3
Philip Morris     60.8
Exxon	 	  50.4
Coca-Cola         47.5
GE                46.1
Merck             44.7
Bristol Myers/Sqb 30.5
PepsiCo           27.6
P&G               27.1

 This is gain in market value.

-- 
*******************************************************************
paul@panix.com                                    COMPULITE GRAPHICS
Brooklyn NY usa                                Design & Consultation
********************************************************************
From: rolfer@leonardo.src.honeywell.com (Tom Rolfer )
Newsgroups: misc.invest
Subject: Re: December wash sale effect
Date: 18 Nov 92 17:46:46 GMT
Article-I.D.: src.1992Nov18.174646.9443
Reply-To: rolfer@leonardo.src.honeywell.com
Organization: Honeywell Systems and Research Center


If you sell a stock at the end of December, knowing that it has
a good chance of going up, don't you have to wait 30 days until
you can buy the stock back in order to declare the capital gains loss?

just wondering

Tom
Newsgroups: misc.invest
From: adwright@iastate.edu ()
Subject: buying foreign currency for the little guy
Organization: Iowa State University, Ames IA
Date: Mon, 16 Nov 1992 14:15:40 GMT

I am interested in buying foreign currency on a small scale. Is it possible 
to get, say Swiss Francs or Yens at a Bank in the form of Travellers Checks
and just cash them in for dollars later on? Would i need to have proof that 
i intend to travel to that country or can just anyone get them? Am i missing
something or would this be an easy way for a little guy to invest in foreign 
currency? Any advice, opinions, or references to books would be appreciated.
Allen


Newsgroups: misc.invest
From: cs101a64@eng-nxt04.cso.uiuc.edu (cs101 student)
Subject: Re: Clinton and the Stock Market (Jason Hsu)
Organization: University of Illinois at Urbana
Distribution: usa
Date: Fri, 20 Nov 1992 21:23:25 GMT

In article <1eh175INN5oe@mizar.usc.edu> ciarlett@mizar.usc.edu (Joni  
Ciarletta) writes:
> I am new to this list, so I don't know if this subject has
> already be hashed out.  It probably has, but I'll ask anyway.
> 
> I currently have investments amounting to about $15,000 in
> my retirement account through Fidelity.  This account allows
> you to move money around between any of Fidelity's cash accounts,
> bonds, stocks, etc.  This money is in for the long term, so I would
> think that slight fluctuations in the market won't hurt me
> much.
> 
> Now that Clinton is President Elect, everyone says to "prepare
> for inflation". Should I be concerned? Should I move my money
> to a certain type of account to avoid losing much money?  Or since
> it is in for the long haul, do I not need to worry?  Are they
> specific accounts to avoid?  Any recommendations on specific
> funds?
> 
> Any help or advise you could give would be appreciated, as I am
> new to this game.  Please respond to me directly at  
ciarlett@mizar.usc.edu,
> as I rarely have time to read the boards.  If there is any interest,
> I will post the responses I receive.
> 
> Thanks!!!
> 
> Joni
I predict inflation and interest rates will rise, but not because of  
Clinton.  Both are very low. Currently, long-term interest rates are much  
higher than short-term interest rates.  Every time this happened in the  
last 30 years (1964, 1973, 1977, 1986), rising interest rates followed.   
On the other hand, interest rate peaks occur when short-term rates are as  
high or higher than long-term rates (1970, 1974, 1981, 1990).  I suggest  
you avoid long-term bonds like the plague.  Keep your maturities no longer  
than a year.  I predict that the biggest bear market since 1974 in stocks  
will begin in late 1993 or early 1994.  I suggest keeping a lot of money  
in money market funds so you can save your skin and be liquid enough to  
buy stocks when more opportunities are available and bonds when interest  
rates are high but peaking (when money market fund maturities are short  
but lengthening).  For now, buy top-yielding CD's of no more than a year  
in maturity and buy stocks with price/book value ratios of 2/3 or less and  
either a yield of at least 5% or PE in the single digits.  These  
Graham-and-Dodd bargains will dodge the bullet when the bear pounces on  
Wall Street. 
Newsgroups: misc.invest
From: weiqing@utdallas.edu (Weiqing Wu)
Subject: about JWP		
Reply-To: $USER@utdallas.edu
Organization: The University of Texas at Dallas, ACC
Date: Tue, 17 Nov 1992 01:30:58 GMT

I read an article about JWP on the network. But today I couldn't find it anymore and lost its E-mail
address. I have followed this stock several month now and I'd like to share some information with him.

JWP's principle business is divided into three sector: technical services, energy and environmental
systems and services, and supply of water.  It is 4 billion company and is one of the largest
companies specializing in the design, distribution, integration, installation and maintenance of
complex electrical, mechanical, computer and control systems.

It's stock falling sharply since the beginning of this year. It fell to 2.25 in October never seen in
the company's history since 1987.  The drop largely is due to the first time loss 49.3 millions, or 
1.21 dollars per share for the quarter ended in June, 92. Value Line in September said that
share-earnings estimates for the second half of 1992 and for 1993 are 15-20 cents and 60-70 cents.
respectively.  In October, it revised its estimate of a loss because of company's announcement that
it expected 50 cents loss for the third quarter and a small loss for the last quarter.  The stock
lost half its value in a single day.

The stock is a great bargain and a good buy. Why?
1) It is cheap. The 52 week high is 20.  The 95-97 projection for the stock in the value line is 30
to 17.  
2) It is a very very large company. Its revenue for 6/92 is 1,028.1 mils. It would't disappear
because a quarter loss or a year loss.`
3) According to my research, it's loss is largely due to obsolescence inventory. It is caught in the
PC price war and a large portion of the inventory is out-dated. But JWP is in the PC and network
integration bussiness. After restruction, it will definitely come back.  Look at Dell computer or
Compaq's come back.
4) The company is going through a big shakeout the top management level and cost cutting measure. 
It is a positive sign. I expect that it will benefit from a lower cost structure and better internal
coordination. (They shut down two headquarters to move the one headquarter.)
5) All bad news already came out. The stock is traded about 4 dollars. It is little possibility to go
down further. It is very active.
6) If you like bottom fishing and a little risk, JWP is a very good buy.

Above is my personal opinion.

Welcome any comments and opinions.
From: rbp@sw.stratus.com (Russell Peterson)
Newsgroups: misc.invest
Subject: Re: GM card (was Re: FORD visa vs. DISCOVER)
Date: 17 Nov 92 17:33:19 GMT
Organization: Stratus Computer, Inc.
NNTP-Posting-Host: paradise.sw.stratus.com

I just got a GM card.  The reason I got it was because there
is no annual fee.  I pay off my balance each month so the
interest rate does not concern me.  True, you get a 5% credit
towards a new GM card (NOT Saturn!).  It's a seven year limit
with a $3500 maximum I think.  After seven years, if you have not
used your "car credit" the 1st year's credit is wiped out and they
count the 8th year instead.  Consequently you always have a max of
7 years worth of credit (assuming you didn't use it).

The card also has a special deal with Avis Car rental and MCI
(for all you AT&T card holders) but I don't know the details
on this yet.

Yeah, the above may not be correct and is my opinion only.
Newsgroups: misc.invest
Subject: Personal Tax Edge 1992
From: gary@cdthq.UUCP (Gary Heston)
Date: Mon, 16 Nov 92 22:13:31 CST
Organization: Garys' Home for Obsolete Computers

Well, I've installed PTE 1992, and did a test runthrough with 
last years' data. So far:

I'd have gotten about $90 more back, under this years' rules. Seems
that the standard deduction went up.

On a 1099-DIV, it does not allow for multiple sources of foreign
income or tax. I didn't see a workaround for that; it can't just
all be lumped together, since it's necessary to list the country
as well. I doubt that the IRS would accept "several"....

Otherwise, no significant problems, so far. The one time I tried 
the context-sensitive help, it was pretty irrelevant to the field
I was in (on the W2), but I finally figured it out. 

Total time to install and try was about an hour.

Incidentally, this is the "Planning Version"; they'll ship a 
finalized version (no extra cost) after year-end.

Gary Heston, at home....
gary@cdthq.uucp
Newsgroups: misc.invest
From: watanabe@cs.uiuc.edu (Larry Watanabe)
Subject: Re: A stupid question I should know
Organization: University of Illinois, Dept. of Comp. Sci., Urbana, IL
Date: Tue, 17 Nov 1992 22:53:05 GMT

keith@iscp.Bellcore.COM (Keith Hawkins) writes:

>Hello,

>After reading time and time again about this or that company
>issuing 2 million more shares, it suddenly dawned on me
>that I don't understand how this process works !!

Simple. The company decides to print new shares.
It applies to the SEC for permission to make a new
offering. It then sells the shares to the public.
Voila! It's magic! Money from nothing! 

As to their effect on the stock price: it really 
depends on a variety of things.

For some companies, i.e. a money market mutual fund,
printing out new shares will have no effect
on the price of the shares. Money market mutual funds
usually sell their shares for $1 a share, and pay out
any gains in dividends.  Whenever a new customer
buys some shares, new shares are created. It doesn't
affect the other shares in the slightest. Although it
has to split up its earnings among more shares, it has
more dollars with which to earn money and can put
them to work right away.

On the other hand, suppose you have a company that 
has a very high P/E and it prints out more shares.
Then, the earnings have to be shared among more
investors. Because the earnings have been diluted
among more shares, the price of the stock will 
usually drop. Eventually, one hopes that the additional
capital raised will allow the company to make much more
money. But there is a bit of a lag; earnings will be
better in the longer-term future, but in the shorter-term
they will be diluted.

For example, Dell recently announced
that it may offer 4 million new shares. Since it has
36 million shares already, this should mean a drop 
of about 10% in earnings per share, assuming that 
Dell doesn't use the money it raises productively.
Since Dell will probably make some effective use
of the money, we might assume that the share prices would
drop about 5%. 

If you look at Dell's pricees on Thursday, it was about
37. 5% of that is 1.85. One would expect that the
price would drop to about 37-1.85 = 35.15. 
Dell actually went down about 1.5 on Thursday
and .5 on Friday, and has gone up on Monday.
So, it looks like the news has been discounted.

(Unfortunately, news often gets "discounted" more than once.)

I think Dell is a good investment, so I bought some
after the stock dropped on Thursday. It has posted
extraordinary earnings this year. It is true that
the earnings have been diluted, but it is a cheap
way to raise capital and better for the health of
the company than taking on debt. I think Dell is growing
fast enough that it doesn't need any further leveraging
through debt.

I thought of waiting until the new shares were actually
offered (around Dec) but didn't want to second-guess
the market.

Anybody have any thoughts on Dell?

-Larry Watanabe watanabe@cs.uiuc.edu
From: pcr@quasar.genrad.com (Perry Rothermel)
Newsgroups: misc.invest
Subject: Re: GM card (was Re: FORD visa vs. DISCOVER)
Date: 17 Nov 92 19:17:43 GMT
Organization: GenRad, Inc.
NNTP-Posting-Host: quasar.genrad.com

In article <1ebacvINNfl3@transfer.stratus.com> rbp@sw.stratus.com (Russell Peterson) writes:
>I just got a GM card.  The reason I got it was because there

How does one get a GM card?
Newsgroups: misc.invest
From: klur@cbnewsb.cb.att.com (david.s.klur)
Subject: Re: Israel Closed End Fund
Keywords: closed-end funds israel
Organization: AT&T
Distribution: usa
Date: Thu, 19 Nov 1992 04:07:28 GMT

In article <26741@optima.cs.arizona.edu> bakken@cs.arizona.edu (Dave Bakken) writes:
>In article <1992Nov19.001723.6898@cbnews.cb.att.com> ask@cbnews.cb.att.com (Arthur S. Kamlet) writes:
>>
>>First Israel Fund (ISL - NYSE) went public @ $15 about a month ago.
>>It dropped to around $13+ within a day or two, which is usual with
>>closed end funds.
>
>Has anyone looked into this fund, or is there a way we can get a
>prospectus (since it was an IPO)?  Does anyone have any informed
>opinions on this fund?
>
>Dave Bakken                               Internet: bakken@cs.arizona.edu
>Dept. of Computer Science; U of Arizona   Voice:    +1 602 621 4098      
>Tucson, AZ 85721; USA                     FAX:      +1 602 621 4246
>The fact that you're paranoid doesn't prove they're *not* out to get you.

My opinion on the Israel fund:

I think it will do well, because there are many American 
Jews (myself among them) who will buy this fund for
political, religious, or cultural reasons, not just 
for financial reasons.  Then again, maybe not - but I
do think that this fund has tremendous potential.


--
David Klur 	           | "There are two types of people in this world... 
AT&T			   |  Those that think there are two types of people,
dklur@attmail.com 	   |  and those that know better."
Me? Speak for AT&T?!?      |    -- Tom Robbins, "Still Life with Woodpecker"


Newsgroups: misc.invest
From: O10037@waccvm.corp.mot.com (Ray Hoff)
Subject: Re: IRA info needed.
Organization: Motorola
Date: 19 Nov 1992 12:46:09 MST

------------------------- Original Article -------------------------
sbale@netcom.com (Swamy S. Bale) writes:


)Do I need to open an account in a bank or brokerage firm?

   It really depends on what you want in terms of risk.

)Is this mandatory that I should have someone manage my IRA account rather
)than myself?

   No you can open a self-directed at most banks.

)How much of my money I can put in IRA each year?

   It depends on your yearly gross pay.  I can't remember how it works
   off hand, but it's easy enough to investigate and I'm sure another
   netter knows.
)Can I open IRA account any time of the year?

   As far as I know as long as you have the money deposited by April 15
   (assuming that's the day you file with the IRS) you can claim it on
   on that years return.  This means you can open up an IRA before April
   15 next year and claim the deduction on this years taxes.

)I would like to maintain my money by myself rather than paying fees/comms
)to somebody else, to maintain my account. Also any information on other
)tax shelters is also appreciated.

   You can open an IRA with most mutual fund families, I recommend a no
   load fund.  The minimum investment varies and I have found it to be
   true that it is usually less than a normal initial investment into the
   same fund.  There is usually a yearly fee associated with an IRA in
   some form or another, but a few mutual funds don't have any or they
   are very low in the first place.

Ray
-->a poor working stiff w/ alot of dreams.............

Newsgroups: misc.invest
From: fardad@bostech.com (Fardad Farahmand)
Subject: December wash sale effect
Organization: Boston Technology, Wakefield, MA
Distribution: usa
Date: Tue, 17 Nov 92 15:31:44 GMT


Is it true that historically when price of a given stock falls
dramatically (lets say more than 50%) during a given year that the price is
likely to fall during December due to selling for tax benefits?

Is this more apparent in stocks that are expected to rise again? (since 
those who are holding the stock kept it in anticipation that it will rise
but now that it is the end of the year they will cash in the loss and 
reinvest later.)

No speculations please.  I am thinking about historical facts.

Regards,
FF
Newsgroups: misc.invest