| Show -- -- - - -- ii Insider Trading Monitor The Salt Lake Tribune Sunday September 3 1989 F5 : Benefits of Lower Interest Rates Set Pattern for Insider Action By Bob Gabe le FCI InvestNet As we analyze insider buying and selling in various industry sectors an interesting pattern emerges Many of the industries that filter to the top of the buy list turn out to be those that would benefit from a lower interest rate environment Banks utilities Real Estate Investment Trusts and homebuilders are examples of such industries where insiders are accumulating actively There are other industries that indirectly stand to benefit from such an environment and some of them are showing strong insider support The furniturehome furnishing industry is a good example One company we have seen interesting accumulation in is Maytag Corp The stock has seen a lot of action lately on the heels of positive press and takeover speculation In it jumped from $2150 to $2675 in one week before giving back half the gains Recently insiders have been buying Three of them have picked up a total of 21000 shares between themselves in late July and early August The biggest buyer was director Peter S Wilmott who picked up 15000 for $22 each Aug I raising his position substantially to 20000 L Worley picked up 2000 Aug 18 for $2025 The trade boosted his holdings to 2525 Mario Gabe Ili's GAMCO investors likes this one also The group holds a 1279 percent stake in the company This year we have been noticing what looks like a difference of opinion between Wall Street and insiders in the oil and gas drilling industry The street has bid many of the issues up and insiders are taking profits into the moves One issue that has been slow to respond however is Western Co of North America The shares have been trading in a tight range since a company reorganization but have recently shown some life Since June however four insiders have sold a total of 30400 shares The most recent sale was that of vice president Vinod K Talwar who sold 8000 shares in late July for an average price of $8 each He's down to 12000 shares now Parker Drilling insiders have been selling into the strength So far this year 10 of them have sold a total of 280766 shares as the price has Directoi Lester Crown picked up 5200 for $2125 in late July Ile now holds 4596921 The third buyer director Ann W Reynolds picked up 800 for $2263 and now holds 1800 Thomas Industries is another company in the furniturehome furnishing industry showing an above average level of insider buying Recently three insiders bought a total of 5000 shares here at prices between $1875 and $2025 We reported three weeks ago two of those buys came as the stock touched its year low of $1813 Since there has been an additional buyer Vice president Floyd Slippery Sales Can Mean Payment of Commission After All 'No-Load- ?' NEW YORK — A civil war has indusbroken out in the mutual-funtry over who has the right to be " This term has called a been so much abused that it's losing its original power to lead investors to funds d Right from the beginning was a magic word It meant — and ought to mean — "no sales commission" To people who like to choose their own investments that's synonymous with "good" All things being equal you get better performance from a fund if you don't have to pay a sales charge Seeing the power of the appellation it was soon appropriated by mutual funds that sell through stockbrokers and financial planners They pay commissions but don't deduct the money from your investment right up front So d can also mean "no obvious sales commission" Or "you pay a sales commission all right but don't expect us to tell you about it" These funds are what you might call "fake With fake you finance commissions indirectly Typically there's an exit fee if you sell the fund within four years or so In addition a fee of 1 or 125 percent is taken out of your fund assets every year to cover selling commissions and other marketing expenses This latter fee is known as a 12b-- 1 after the section of the securities law that allows it You can find all these loads in the prospectus (look on the fee table near the front) Some salespeople disclose them even to people who called the 100 Mutual Fund Council There's some doubt in the industry that a second organization can survive But the council is plowing ahead It expects to produce a membership directory by Aug 15 To get the directory send $1 to the 100 Mutual Fund Council 1501 Broadway Suite 312 New York NY 10036 e You can also get a free list of mutual fund groups that have no 12b-- plans or are currently not collecting 12b-- fees from investors Just send a large (business-size) stamped Fund Inenvelope to The vestor (PO Box 283 Hastings-onHudsoNo-Loa- d d Staying Ahead "no-load- low-co- no-loa- no-loa- Albertsonl Inc A Lerew vice president exercised on option 5000 shares of common at $1375 per share July 31 and now indirectty and directly holds 9115 American Express Co vice president sold 37600 Horne 1 Freeman shores of common between 53775 and $3763 per and now indirectty and directly share from Aug Curt for By Rick Ratliff r Newspapers DETROIT — Actor Ricardo Montalban is out as a spokesman for Chrysler rock singer Tina Turner is in as a spokeswoman for Plymouth and — big surprise — Chrysler Chairman Lee Iacocca is back yet again for a few corporate spots in 1990 model year Chrysler Motors ad campaigns The smooth Montalban famous for gushing about "rich Corinthian leather" was deemed inappropriate for the 1990 Chrysler division campaign with its tag line "There is No Luxury Without Engineering" A Speirs vice president disposed of by 200 shares of common at an unreported price per shore Aug 8 and now directly holds 32275 Union Pacific Corp Carl W Vonbemuth vice president exercised an Option tor 1100 shares of common at $4179 per share Aug 4 and now indirectN and directiv holds 1547 Insider Trading is written by INVESTNET Inc ofI N Miami R a registered investment advisor Insider Trading Six Month Activity Summary Accum Dispose Company 17 15 Albertson's Inc 3 3 American Express Co Ballard Medical Product 0 3 17 General Motors Corp 15 Joseph gift holds 27708 Ballard Medical Product John I Bloomberg director sold and disposed of by gift 5300 shores of common between an unreported price ond $2013 per shore from July 4 and now directly holds 40500 Evans It Sutherland Computer Corp Richard F Leahy vice president disposed of by gift 2351 shares of common between $23 and $16 38 per share from Dec 22 1987 to Dec 19 1988 and now directly holds 24394 General Motors Corp John W McNulty vice president exercised an option tor 2070 shores of common at $2663 per shore Aug 8 and now indirectly and directly holds 25418 international Business Machines Corp Stephen D Bechtel director indirectly purchased By Jane Bryant Quinn IBM 7 2 International Paper Co Natures Sunshine Union Pocific Corp 4 0 4 3 others no-loa- d blithely tell you you're buying a and hope you don't ask what that word means Meanwhile back at the battlefront the industry has broken up Muinto two parts The old tual Fund Association — originally formed to educate people about — now calls itself the Mutual Fund Education Alliance Its new purpose is to teach people that they can buy mutual funds through the mail without going to a broker or no-loa- d No-Loa- d n NY 10706) A 12b-plan is not itself the issue The issue is how much a fund is 1 no-loa- charging and whether its kidding you into thinking there's no sales commission when in fact there is You should assume that any mutual fund sold by a broker contains a load Beyond that "all funds have marketing expenses" says The Fund Investor's Sheldon Jacobs In fact "some funds could argue that their 12b-- plans are lower than other funds' expenses" Gordon Synder a vice president of the pure Twentieth Century Funds told my associate Virginia Wilson To find a low-cofund look at the "expense ratio" in the fee table in the front of the prospectus Average expenses are around 12 percent for stock funds and 08 percent for d bond funds Jacobs says There's no reason to go higher planner Nevertheless it accepts as members funds that pay 12b-- fees to brokers and planners as well as funds that charge "low loads" — sales commissions in the 3 percent area rather than the usual 8 percent The existence of both these charges is disclosed in the membership directory ($5 from the Mutual Fund Education Alliance PO Box 11162 Chicago Ill 60611) That's not good enough for the funds that think ought to mean "no sales charges period" have More than 100 pure gathered into a new organization 1 PIP)IC : No-Loa- d up-fro- 1 no-loa- d d INSU 11 no-loa- CD actor Christopher Plummer will narrate ads for Plymouth Chrysler division will stress such features as driver air bags anti-locbraking systems and the Ultradrive automatic transmission in ads that feature actual 1930s footage of a Chrysler Airflow toppling over a cliff and being driven away (The same feat is not replicated with 1990 models however) Dodge division has created whim- identity The ads are intended to of conmake a broad sumers consider Plymouth "a smart n cross-sectio- Last year's redundant Plymouth slogan "Satisfy the Customer Satisfy the Customer Satisfy the Customer" is gone gone gone The tag line Turner repeats at the end of each spot is "From Plymouth That's right Plymouth" In other Chrysler celebrity advertising changes James Earl Jones no narration longer will do voice-ove- r for Chrysler division he has been replaced by actor Peter Strauss And 0 13g 2 CD puts your investment to work where First Federal's thousands have saved millions with confidence and security for 170 years A $1000 minimum deposit is required and of course your account is FDIC insured to $100000 r "ow FIRST FEDERAL : BUSINESS W Utah's Only 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P '::::": ' - SIEDED SA7E 11111113100$ 0) ii 075 41"Z''4:i 'N Z- 1t''r4:1i1!---3:t:1''ft f''f':- ' $ OA D 0 44 1 7:: - NI t7 gt-- plus 111 ' tid :IF Class registration is a $1500 book $150000 '4:'''0 f0 4 iWi utilizing microcomputer deposit : i' :44 ket661111 The Human 'Much' 4 4'11 1140 ( First Federal COMPUTER SKILL CLASSES T ''' INPrift bleared armada Federally :s) 3 ie!B9112ELL298-516- d4 : SAVINGS 212TEy'Slatettin— BMW L ' A safe sensible place to save - "ULTIMATE" THE ULTIMATE DRIVING MACHINE Woods Cross 50 0 Annualized yield assumes all principal and interest remain on deposit at stated rate or one year Interest compounded quarterly Substantial penalty 1 r early vithdrau al Ntaximum account $250000 Rates are subject to change without notice strange photographic effects while retaining the 1989 tag line "The New Spirit of Dodge" The commercials are intended to reinforce a image for the line -- 15 ' Current Rate Annualized Yield sical offbeat commercials with 411P 75011 o k buy" BMW D 1 no-loa- d no-loa- ADVANCED BUSINESS FALL 3 0 d k COMPUTERMANAGEMENT PROGRAM ANNOUNCES ' 1 d RECIPIENT OF THE 1988 US DEPARTMENT OF EDUCATION AWARD FOR THE OUTSTANDING ' 1 d which does not call for an spokesman said Joseph Campana Chrysler vice president Campana said Turner was chosen for Plymouth because her high energy and sexy style might help give the Plymouth line Chrysler's nameplate for budget-mindebuyers a better JORDAN SCHOOL DISTRICT TECHNICAL CENTER ' ' FIRST FEDERAL SAVINGS one-pag- don't read prospectuses Hit the Road Chrysler Tells Montalban Knight-Ridde- 5100 shares of common between $113 and $10950 15 ond now indirectly per shore from May and direcity holds 46000 International Paper Co JOSepil R Pirnstkit vice president exercised on option tot 3300 shares of common at on unreported once per share July 31 and now indirectly and directly holds 17860 Naturel Sunshine Products Inc Brent F Ashworth vice president sold 2000 shares of common at $1213 per share Aug 9 and now directly holds 8000 moved from the $4 range (in December) to its present $8 level Insider sales in the oil and gas drillers contradicts the view that these issues may have seen the worst and are poised for additional upward moves No-Loa- d no-loa- no-loa- d ‘ Kty Bank Tower 50 South Main Suite 460 Salt Lake City Utah tot ' 3800 South Branch 3785 SouT 700 East Salt Lake City Utah 4- -I |
