OCR Text |
Show ra 2 e Experts divided over whether public will buy new inflation-indexed bonds ASE/OTC Equity Funds Taxabte 43.08 +2905 118.91 109.45 44.33 +4493 42.62 +24.85 98.05 Municipal | Funds oe—=— soot tien ote TOB.17 +116 +812 40.70 +6.74 101 83 90.08 +5.06 101.09 and te now worth 864.110. eect | Rost Gx STZ SONG TFwan || || +5.83 | 101.46 99.72 10577 116.15 4095 42.94 1.07 ¥1278 -050.426.62 | Oh MAYER bond. Butwill the public go for it? The bond, announced byTrea- sury Secretary Robert Rubin, is an intriguing new entrant into the “The value of the average investor's portfolio is determined by dividing the total assets held byAmerioansthe by number of U.S.adults fixed-incomesphere.It is designed SALT LAKE CITY — Special- ny’s name to CyberAmerica Corp. ized Health Products InternaThe name change is subject to tional Inc. Friday announced that approval by the company’s sharerevenues forthe first quarter ended holders at its upcoming annual meet- to remove one of the last risks associated with buying Treasury bonds -— inflation — bypegging their returns to the fluctuations of the cost of living. The bonds’ principle would grow at the rate of inflation, while paying fixedrates. In announcing the new issue, which he hoped would be offered bythe end of the year, Rubin said “We think the kinds ofinvestors who will be most interested in these securities will be individual Americans saving for their retirement, or for other long-term purposes, including their children’s education.” Reaction among brokers and money managers was mixed after the announcement, with many say- March 31, 1996 were $16,621 resulting in a net loss of $711,510, or 8 cents per share, on 8,566,653 ingtentatively scheduled for June 11. The proposed name change reflects the company’s entry into the market of 21st century virtual outstanding shares. This compared with revenues for the same quarter of 1995 of $82,612 resulting in a net loss of ae 602, or 27 cents per share, on .363,500 outstanding shares. The paoe completed a reverse merger with Russco Inc., in July 1995 to become a public entity, hence increasing the number of shares outstanding. SALT LAKECITY — Tenneco Packaging. formerly known as Packaging Corp. of America, opened the doors of Utah’s largest corrugated products facility Friday during a ribbon-cutting ceremony led by Salt Lake City Mayor Deedee Corradini and representatives from the Utah Department of Community & Economic Develop: ment, the Salt Lake Area Chamber of Commerce and Tenneco Corp. Designed and constructed in just nine months, the 253,000 square-footfacility located at 4654 W. 1525South features state-ofthe-art machinery capable of producing one billion square feei of corrugated productannually. business systems and coincides with the company’s expanding emphasis in providing Internet products and services. The company also announced Friday that through its wholly owned subsidiary, Canton Financial Services Corp., it has entered into an agreementtosell its who!ly owned subsidiary Cyber Baseball Inc. to Baseball Properties Inc. In addition, CFS will provide various consulting services for BSBP which will include creating an Internet mall site through which CFSwill seek to obtain the right to market and promote the products and services of major and minor league professional baseball teams. Under the terms of the agreement, CFS has agreed to sell CYBALLto BSBPfor $6 million, which will be paid to CFS in an initial payment of $1 million or 100,000 shares of BSBP’s commonstock with a guaranteed value of $10 per share. The remaining amount will be paid to CFS through BSBP’s execution of a promissory note payable to CFS over a three year period in cash or the common stock of BSBP. In addition to CFS's developmentof Internet Mall Sites for ali “It’s going to have an instant ing that the bonds’ popularity will depend on details that still haven't been decided. For instance, the Treasury Department hasn't yet offered a final proposal on the bonds’ maturity, their numbers, their price structure and what inflation gauge will be used. But the bonds could become hugely popular, several said. the United States, but which also protects you against inflation.” The inflation-indexed bonds would allowinvestors to buy bonds without having to worry about whether the value oftheir investment would be savaged by a nse in interest rates. While those who buy individual Treasury bonds and hold somehow be used for commercial, ciple, the investment makes some sense. “It’s great for somebody getting readyto retire, who's circling the wagonsand wants to cash out” in a few years, said Sullivan. Others say fhere’s a hunger for newinvestmem@s — ofali kinds — and the boi will sell on that basis. expect mutual-fund families su as T. Rowe Price to add a few to their short-term government mutual funds, and eventually perhaps someone else patented it first. Conversely, a trade secret cannot prevent competitors from using it if they independently discover the secret through fair and honest means. But as long as the information remains a secret, it is protectable indefinitely, whereas patents expire 20 years after their filing date. The formula for Coca-Cola® soft drink has been described as one ofthe best kept trade secrets in the world.It is reportedly company can usually be learned by inspection. As such, they are not pro- tectable us a trade secret and typi- Karl cally require a patent for protec- Cannon SALT LAKE CITY — Create- SALT LAKE CITY — Data- A-Check Inc. Friday announced it Mark Holding today announced homepage on the World Wide Web. The page is up and running and can be visited at million private funding predominately placed with major domestic has finished construction ofits that it has just completed a $17 institutions. http://www.createacheck.com. The proceeds will be used to According to John Bechard, vice launch the company’s proprietary presidentofsales and marketing for online advertising and promotion Create-A-Check, the web site is program scheduled for introduction another sales and marketing tool Create-A-Checkis usingto sell and Promote its products and services. this fall. The completion of the offering also makes DataMark Holding eligible to be listed on the SALT LAKE CITY — The NASDAQNational Market System. The company hopes to completeits Canton Industrial Corp. Friday approved a change in the compa- application within the next 60 days. Financial Snapshot ‘ Friday, May 17, 1996 INTEREST RATES Week's close Weak agu Yeirego Average rate paid on bank 2.66% 267% 2.88% 19% 5.12% 5.86% 6.83% 6.92% 6.89% i money-market accounts (Bank Rate Monitor) 91-dayTreasury Bill Yield 30-year Treasury Bond mation of a preduct or operation Dow Jones 30 6000 (mkt. value of$000 stocks) 5,687.50. | ssieis | 436133 688.91 65200 519.19 $6,691.255 $8,506.582 bition bition | $5,000.826 bition bonds “But we'd have 20-see a lot of, demand fromour 401(k) base.” he said Patent Pending elected to forgo producing Coca- petitors who do not knowor use the secret. A trade secret must be novel company to digclose the secret for- 3. mulaas a co for doing busi provides an advantage over com- Cola® soft drink in India because ment is not the same high standard of novelty required for a patent. Some courts have even held that a trade secret may be so Simple as to be obvious, as long as it is not generally known and provides some advantage over competitors. measures taken to maintain secrecy The company should require fidentiality contract, and should periodically remind the employees oftheir confidentiality obligation. Access to the trade secret should be restricted, even within the company. Physical security measures should be established, such as locks on gates, doors and desks leading to trade secrets. policy that only two employees All trade secret docu: know the formula at any one time. should be labeled “confidential” tion used in one’s business which However, the novelty require- Trade secrets are largely a creature of common law legal tradition. Company policies and confidentiality contracts are principal vehicles for maintaining an enforceable trade secret. A company opting for trade secret protection should adopt a written statementofits trade secret policy, perhaps in the form of a policy manual. The policy statement should outline at least generally the information considered to be secret, and should set forth the secret is divulged to sign a con- device or compilation ofinforma- The Coca-Cola company once the Indian government wanted the r “proprietary.” Any computer system containing trade secret information should be accessible only by password codes, Visitors po be required to register at, desk and be estorted’ within the company’s physical ness there. That indicates ier facilities by an employee. valuable the secret formula is to. Departing employees should the company, since India has a potential market of some 550 million people. The Coca-Cola company could have opted to pursue patent protec- sign an acknowledgement of a continuing duty to maintain secrecy of “any confidential information. numbers have been very volatile, both because of aircraft orders and the auto industry.” says Silvia, chief economist for Zurich Kemper Investments Inc. Overall, he says. “the trend remains upward.” NO HORN TOOTING: ° ers gather for a meeting of the Fed- there fs tall that it "t last longer than 15 minutes. Chicago economist William Hummer says members ofthe Fed “have no reason to changepolicy. The economy is a bit stronger than was expected, Senoan Chicago's Wayne Hummer & Co., says that “without any cogent @vi- dencethat inflation is worsening, members of the Fed would prefer to leave interest rates alone until after this fall's election.” ON A COMEBACK: Consumer spending is be in the midst of a comeback, to you would hardly know it results at the nation’s dis retailers. Wal-Mart Stores reported last week that first ter profits rose a paltry 3.3 from a year earlier. Which us to Tuesday’s annual meeti Kmart Corp. Analysts are e: for ing the company, which has posted losses for each of the last four quarters, sal rket to detail | newpreferted gtoc! refinance about S. coming due‘ind uing ; to debt Bes THE ANNUALMEETING: On Friday, the world’s No. | bolaips General Motors Corp. WiimpanaSet Ree ing in it G nce a Bealba teU's ic highly successful Saturn line. It would berbuilt —. lo and behold — in Wilmington. The car reportedly shares bloodlines ‘wi model made by GM's division. “ “3 + n- Opel " ¥ ie is Will be a big week shoppers buying steaks and hamburger for cookouts. ae should abound because ranchers and for grain. According to Bhonbety Business News, yet es at Sots aes vels since 1990. The Cattlemen's Beef Association says as of MayBytheanceagenpmae of six cuts of beef in 19 cities Was $2.96 a pound, down from$3.01 in April and $3.15 a year earlier ¢ tion for its if it R. Cai ine regist had, the patent red t rornerthe law ‘ EUPHORICjov7 : Therein lies a couple of keydif- years ago and the formula would of THORPE, NORTH & WESTInvestors in the stock markét, ferences between patents and trade have entered ‘the public domain ERN in Sandy. His column appears secrets. A patent will not be grant- Instead, the Coca-Cola company every two weeks in the Monday caught up in a wave of euphoria over record prices, have nearly ed for an invention which is has a formila worth millions edition of The Daily Herald and is forgotten the crash that ty an obvious modificatiog of which no one qse can use as long intended as general information in Japan at the beginning of this existing technology. And as the compa is eeod and not as, specific legal costing invest patent is granted, an unfortunate keeping it a sec rice. Questions or comments Scons of 2 second inventor who coincidentalA trade secret is not something can be directed 10 Cannon at (801) eggs. John ly inveats the same thing still can- which is granted or registered like 566-6633, or via e-mail at cannot use ihe invention because @ patent, trademark or copyright. non@ tnw.com. DILBERT®, .¢ S&P 500 even create a separate fund ofthe any employees to whoma trade But sometimes the key infor- can be kept hidden from view. Formulas, customerlists and manufacturing processes are typical trade secrets. A trade secret may consist of any formula, pattern, A fresh splash of industrial numbers hits us Friday, with April orders for durable goods. Chicago economist John Silvia sees them showing a drop of 1.7 percent, reversing a gain in March. “The the first trial bonds, Van Dykesaid. But, he added,ifit turns out that wantto lock ingfains or protect prin- there's'a’big appetite for the Thefeatures of exercise equipment tion. sed 09 be the periods have been much greater, Sullivan 2 ut for those who ics, anyand ailrelated text. corporate profiles, associations with maintenance and service. " nation’s strong swimmer, may only have been treading water. eral Reserve Open Market Committee. While chairman Alan Greenspan should have little trouble, calling the. sessign, to order, tained inflation and a robust equity thet,” other investments still the bonds simply because the his- details of pricing and structure and toric returns on stocks over long howtherest of the market receives Smith's has offered to purchase 50 ate the web page. logos,all graphsearch engines, press releases, . Don’t look for many wumpets to blare Tuesday, when policymak- percent, in the aggregate, ofits outstanding Class A Common Stock and Class B CommonStock at a price of $36 per share in cash. services on the Internet. Through ¢ hold sway, he said. As for institutional investors, their appetite will depend on the On the other hand, Merrill CFS, CYBALL will be ableto cre- promote and advertise goods and as floating-rate mortgages and Companytrade secrets can be protected even without patents New products and operations usually require a patent for adequate protection in the market. Usually, that is, but not always. If the product or operation can + fears of Sorutaging Lynch's Sulli investors could wind up paying for the safety with low yields. Longterm investors may want to avoid prehensive marketing programs to of 11.25 percent Senior Subordi- types of entities, it also develops. nated Notes due 2007. The Notes implements and maintains com- Seme others in the financial community, though, were skeptical, saying the public isn’t as frightened of inflation as the governmentsuspects, and that, in any case, there are already other instruments, such or who need to sell their bonds before maturity, have suffered steep losses in the last several years when interest rates rose sharply are being issued as part of the required financing for the pending recapitalization of Smith's. Pursuant to the recapitalization, SALT LAKE CITY — Smith's who wants it for their retirement portfolio”to preserve gains. bonds,thatfill the same function of jusiing with interest rates. ‘ean't imagine that the retail investor will just scoop these things up,” said Peter Van Dyke. head of taxable fixed-incomedivision at T. Rowe Price in Baltimore “In this environmentoffairly con- advantage butstill maintained as a secret, then it is protectable as a “trade secret.” Butif the product or operation is capable of being copied by competitors, a trade secret is not possible. Take exercise equipment, for example. Many exercise machines have been patented to prevent the competition from simply copying and selling the inventive features Food & Drug Centers Inc. announced Fridaythatit has priced its public offering of $575 million “There really is aadd for Knight-Ridder Newspapers appeal for its safety,” predicted other asset een” says Tim, NEW YORK — The U.S. Trea- Barry P. Sullivan,a first vice pres- Wooley. portfolio manage for sury last week held out the ident in Merrill Lynch & Co.'s pri- fixed income at the Glenmede who have described prospect of a new investment to vate client group. “They've Trust Co. in Philadelphia. “I would the Analysts economy as doing a frenzied those who wince at the memory of devised an instrument that has the considerit for myself, just to diver- dog paddle helped create iat the double-digit inflation of the American flag wrapped around it sify,” he said. But the most logical some called as 1970s — the inflation-indexed .. with the full faith and credit of investor is “somebody in their 50s |