Show Business 2F Sunday November 26 2000 Standard-Examin- er WEEKLY WALL STREET f L' ) THV under the Ronald Reagan’s ministration BusinessPeople reports news and information about Top of Utah businesspeople To have Richard PO 332 S Ward Box 12790 Ogden Please include a stamped envelope if you would like photographs returned You can also fax information 9 News items about to general business happenings are featured in the Business Buzz column which runs every Thursday UT 84412-279- 0 Y' Inc has earned his professional I J li- engineer’s cense He has worked for En- - sign since 1995 and has worked on projects from West Jordan to St George Andrew Bufimire was appointed to the board of directors of Crown Energy Corp in Salt Lake City He is currently Vice President of Business De- charge of the IRS Fraud Detection Center oversee- velopment for Ubiquitel Inc with responsibilities that include development of strategic ing criminal investigations He business transactions previously worked as a rev- Bufimire graduated from the University of Utah' enue agent and special agent in the Salt Lake and Provo areas and as senior analyst in Washington DC I He graduated from Utah State University Sacramento Califbased EMAssist with offices on Hill Air Force Baise and in Sandy has appointed Lynn Ken Gee a programmer for tile Utah Department of Food afad Agriculture has been j Meland as President of the company She will be named the department’s first Employee of the Year He received a certificate and $1000 He was nominated for excellence in his position responsible for overall success and report di- rectly to the CEO She has held several executive positions in the past and graduated from the University of Michigan Carlos Braceras and Dal Hawkes have been appointed as region directors for Utah Department of Transportation regions 3 and 4 respectively Braceras will be based in d)rem His region encompasses five counties Hawkes will be based in Richfield His region (Jovers 15 counties throughout Southern and central Utah Elizabeth Cappon janitorial manager at Newgate Mall was recently honored as site manager of the Year for the second consecutive year She has been with Newgate Mall for three years and is responsible for the upkeep of the mail’s common areas Cappon was selected from a pool of over 200 managers for the award and was commended for her overall excellence in her duties Fack-re- ll McNeil Engineering Mike Johnson a branch manager at the US Bank in Ogden was promoted to assistant vice president He is among 156 branch managers nation-wid- e to achieve this position Johnson was selected for his dedication and commitment to !' Thomas K Lewis Jr was iiamed chief executive officer of Campus Pipeline Inc a higher named provider He also will serve as chairman of Campus Pipeline’s board of directors He served previously as CEO pjf Ameritrade Holding Corp and as chief information officer for the Executive Office of the President of the United States time these days With a string of analysts’ downgrades of stocks in other sectors this past week it’s clear that investment firms that for months have focused on high-tec- h issues are now a broad range of stocks Blame the more bearish market analysts say “These other industries are just catching up to the prospect of an economic slowdown” said Larry Rice chief investment officer at Josephthal & Co Analysts cited two other key reasons for why they’re broadening the range of companies being hit with lowered projections First consumers and investors increasingly wary about the economy are becoming more careful in their spending Also' as technology firms have been battered by investors a spillover effect has taken other sectors down as well So as the Street lowers projections for pricey high-tec- h stocks as it just did for chip maker Intel and network equipment maker Jutliper Networks it sees softer sales and earnings promising to plague practically everything else The ripple effect that’s hurt non-tec- h companies has a lot to do with how quickly dot-cofirms have entered and left the marketplace analysts say While industries like advertising benefited from the dot-cosurge they now are suffering as companies like Petscom go under or as others shrink their budgets for commercials print ads and Internet consultants The dot-cobust has led to downgrades for media companies m m ’ his custpmers and to the company Ken Newton-Pende- Vice was r President of Operations for Homes Illustrated magazines to work in the Salt Lake City office He will review current circulation and distribution in four states and implement programs to expand those programs He previously worked for United Advertising Publications YORK - Mutual rjk TEW fund investors who have HrVj w kept their money in gold funds over the past decade prob- ably deserve some sort of award lor their patience ’ Once considered a safe hedge against global economic turmoil gold is no longer the first place investors look when intemation-!a- l markets are temporarily JDiled That shif) in investors’ attitudes has kept gold funds mired in a slump 10-ye- ar I Consider the latest numbers: "Funds that buy the stocks of igold mining and other precious Imetals companies are down Jnearly 28 percent so far in 2000 They have fallen 27 percent over the last 12 months and are down 16 percent since late 1995 according to Lipper Inc a Sum-m- it NJ-base- d company that tracks fund performance -- “There is still a small minori- ty of people out there that be- lieves the world is coming to an end and that gold is the only place to be” said Donald Dion Jr editor of the Fidelity Inde 15964 for the week ending Fnday Nov 24 2000 -- e high: 11722 98 18 2000 Jan Dion noted that the price of gold was once a good barometer of global inflation If inflation was on the rise so was the price of gold since investors wanted part of their money in a “hard asset” to hedge their bets against the volatile and inflation-sensitiv- e stock markets - But with US inflation in check for much of the 1990s the use of gold as a hedging instrument by domestic investors has declined and witfcflt'the value of 7 gold 12 months- S&P Daily S&P 500 r 12100 closes 1600 1 500 1 -- 2595 March 24 2000 e 550 500 1450 1400 1350 1300 1250 1200 1150 1100 1050 1000 134177 high: 152746 950 900 T 12199 3100 6100 9100 12100 12199 3100 6100 9100 12100 AP ' Its stock fell more than 16 percent Tuesday after ING Barings downgraded its rating to “hold” from “buy” a slowing economy that would further crimp corporate profits ' ’ “Everybody is very apprehen- I sive” Myers said The Dow closed at 1047023 down 1 5964 or 1 5 percent for r the week " ‘ The Standard and Poor’s 500 ' index fell 2595 or 19 percent for the week closing at 134177 The Russell 2000 index which s tracks the performance of smaller company stocks lost 903 for the week a 19 percent decrease It K closed at 47187 Who can blame consumers and investors for closing their ' wallets Myers said Evidence pointing to a slowing economy continues to pile up But the Federal Reserve Board earlier this month maintained its position that inflation still threatens the economy That reawakened investors to the possibility of higher interest rates in LOS ANGELES - Got a really big stockRobb Report ' ing fo fill? Foj- the has a few idehsr These aren’t for under-a-dolldiscount store shoppers bulk buyers or those searching of deals on Razor scooters and George Foreman grills The luxury lifestyles magazine’s 17th annual gift guide suggests 21 gifts for the 21st century ranging from a $9 million Charleston SC estate to a $30 million yacht and a $258000 Ferrari 550 Barchetta Pininfarina Pricey? Robb Report readers with an average annual income of $755000 and a $37 million net worth like it that way “These are for the individual who has a keen eye for luxury” said Daniel J Phillips chairman of Luxury Media Corp publishers of Robb Report The gift issue hit the stands Thursday “We put together a list that is pretty sub well-heel- ar stantial” Phillips said this week noting without hesitation “It is all attainable by our readers a person who has appreciation for the finer things in life” Particularly timely he said without hint of a chuckle was the $775 million Star Caliber 2000 Collection of four double-facepocket watphes from Patek Philippe It took 10 artisans eight years to create the unique time- pieces “Today we see technology and everybody has the technology This proves that old word craftsmanship is still alive and well” Phillips said The set includes a pocket watch with chimes that accurately echo the melody sounded by the Big Ben clock tower in London But buyers must move fast “You have to get in line to get the Patek because there is only one collection being sold this year” Phillips said For that special couple the British outfit ar Nasdaq stock market spooked paid on the bonds by the issuers are adjusted each quarter to reflect moves in inflation rates many investors and sent them scrambling for stability in precious metals That quarterly adjustment provides investors with a hedge against rising inflation a hedge once provided by gold Dion explained And in the fall of 1999 international gold stocks got an unex- pected boost when a group of European central banks decided to put a cap on their sales of gold bullion The announcement triggered the biggest one day ' price increase for gold in 13 years and pushed gold funds into the unfamiliar position of being a performance leader during the third quartet of 1999 ' r Energy stocks and real estate investment trusts are also sensitive to inflationary pressures but both categories have proven more capable than gold of bouncing back after a temporary ' downturn “These alternatives achieve a similar purpose without the risk of owning a hard asset that’s been declining in value for 10 years” Dion said Both of those reprieves proved little more than blips on the long-rang- e radar however 5 World price for the metal have been fallir g for two decades since pea dng at $875 an ounce in January 1 980 - a time when the US inflation rate was in double figures oil prices were rising rapidly and Soviet troops were entering Afghanistan Gold currently sells for about $270 an ounce Consequently as the value of gold funds has plunged in recent years investors have sought other alternatives to hedge against inflation namely funds that focus on inflation indexed govemr ment bonds but also energy stocks and real estate investment ' trusts according to Dion Gold funds got a short-live- d boost earlier this year in the immediate aftermath of the huge selloff in technology stocks last spring The sharp decline in the Inflation indexed government bond funds are exactly what the name suggests The funds buy government bonds that are indexed to stay in step with inflation meaning the interest rates These factors have also served to bleed money out of gold and precious metal funds and relegated the sector to a minor role in the overall industry ' j ter Holland & Holland offers a $325285 Af-ncan safari package including a special edi- tion Holland & Holland Range Rover a pair of shotguns and sporting accessories The gift package concludes with a final day of flying in vintage British jet fighters 'i d Little wonder since funds included in the category currently average about $45 million in assets according to Momingstar Inc a Chicago fund analysis firm Funds in all categories of stock mutual fund meanwhile average just over $1 trillion in assets There’s also a $148500 guitar that took"' noted guitar maker Larry Robinson some 1 C’ years to construct The body of the guitar is decorated in lavish Oriental scenes and fea-- ‘ tures more than 3000 separate inlaid wood pieces each engraved and inked “Today’s buyer seeks rarity and quality less conspicuous form Above all they respect excellence” Phillips said but in a subtle The top-2- 1 list also features a 165-fo- ot alK aluminum custom motor yacht from the Dutch shipbuilding group Feadship Its teak decks whirlpool spa and marble floors can be anchored in your harbor by 2003 Price: $30 million-plu- s forced to pay CD burner fees in Germany Hewlett-Packar- pendent Adviser an independent newsletter i 9100 6100 3100 12199 Magazine suggests luxurious stocking stutters 0-ye- The Associated Press 1047052 Consider MarchFirst also downgraded this past week The company that started this year provides services such as Web design consulting and advertising to businesses that want to - boost their online presence But with fewer Internet companies around now and perhaps fewer starting up MarchFirst’s client base has shrunk Meanwhile all companies are contending with consumers and investors who feel less confident and less like they have the money to spend at shopping malls or on Wall Street “The consumers of this world can’t be feeling too wealthy or happy right now” Myers said “I think the stock market is adjusting to a deteriorating outlook” Department stores like JC Penney have seen their sales and profits slump Even The Gap a longtime leader of specialty retailing has struggled The latest sign of softening in the retail world came this past week from the Neiman Marcus The tony department store company warned that November sales were sluggish and that it expected sales declines for the month to be in the single digits Gold funds continue in 1 slump as investors find hedging alternatives PRIAL 7 for the week ending Friday Nov 24 2000 mid-to-hi- Jones closes Dow tising” Other companies getting pinched by techs are those that grew out of the Internet age well-respect- Daily Dow Jones m DF MUTUAL INTEREST ly DUNSTAN 12 months cuts by Morgan Stanely Dean Witter - that will see less revenue as ad sales slump “If you take a look last year’s Super Bowl we had a whole bunch of dot-coads didn’t we?” said Jim Myers director of technical research for Jam ey Montgomery Scott in Philadelphia “Well where are those guys going to be this year? Not adver- The Associated Press Inc as a manager of the Layton office He has over 10 years experience in land fflucation Internet technology NEW Markets roundup both of which suffered ratings YORK - Wall Street more than just stocks a hard m has joined Ensign Engiand neering Land Surveying surveying and was previously employed at tt ‘ nX Ted Elder was appointed as the resident agent in Stephen Pig-go- - 625-429- Ogden like News Corp and Disney By AMY BALDWIN project engineer at Ensign Engineering and Land Surveying Standard-- Ave ad- The Associated Press items considered for this column information should be received by 5 pm Wednesday Send it to BusinessPeople Business Editor Examiner Analysts lowering projections for more than just tech stocks ST" d The Associated Press FRANKFURT Computer giant Germany Hewlett-Packar- -- d Corp has become the first company to be snagged by a German law requiring firms to pay fees for making CD burners that are being used to illegally lift the latest hits off the World Wide Web The case sets the stage for other European countries to possibly adopt similar rules to stem an epidemic that cost the music industry an estimated $5 billion last year But analysts blasted the agreement reached Thursday as another example of Germany’s notorious thatch of regulations “The manufacturers are scapegoats” said Robert Labatt a new media analyst at research group Gartner “It’s the individual works of art books songs videos that need to be protected” Many of Germany’s neigh- bors including France Italy and Greece have similar laws meant to protect authors and musicians by nailing makers of equipment used to violate copyright laws But the laws date back decades and focus on devices like tape recorders and video players The German case against extends Germalaw into the digital age when such things as CD burners computer printers hard drives and high-spee- d modems make it easier to copy and transfer copyrighted items According to the International Hewlett-Packar- ny’s pre-existi- d Federation of the Phonographic Industry about 500 million CDs are pirated annually by people creating their own CDs from downloaded tunes off the Internet More than 25 million pirated music files are available online the group estimates All told that racked up a $1 billion loss for Europe’s $10 billion music industry last year and cost EU governments around $72 million in lost tax revenues the group says Several lawsuits have been filed around the world including an ongoing lawsuit a number of record companies have brought against Napster Inc whose software allows users to easily swap music files GEMA German’s main licensing group targeted Hewlett-Packard as a test case in May reasoning that the company leads the German market leader in CD burners But HewL dug in its heels when it was ordered to pay 30 marks ($1290) for each CD burner sold in Germany since February 1 998 The legal battle continued until Thursday when an agreement was reached to have Hewlett-Packard pay 360 marks ($154) for each unit sold during that period while agreeing to pay 12 marks ($516) for each one sold in the future Hewlett-Packard spokeswoman Jeannette Weisschuh refused to say how much that would set the company back rd I 9 ' |