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Show Business 0bc jialt akr (Tribune profit margins are in good shape to benefit from revenue increases. Most of the large computer makers reported big jumps in net earnings in the final three months of 1985, usually as a factor. Execuciting tives of the companies differed, however, on prospects for this year. I think were going to have a pleasant surprise for some of those computer stocks, especially in the second half of 1986," said John an analyst for the Pershing e division of Donaldson Lufkin & Securities Corp. There are a lot of cheap stocks. During the course of the year, as the companies perform better, that kind of performance will translate into Associated Press Writer NEW YORK Investors who watched the wings fall off their highflying computer stocks in the industry slump are understandably reluctant to take another fling But financial analysts who track the computer industry say certain companies are in a good position to perform well in 1986 even if the industry as a whole contin- cost-cuttin- g d ues to lag. Jen-rett- Moreover, the overall markets distaste for computer stocks works to the benefit of the astute investor because some sound equities can be had cheaply, they say. International Business Machines remains a favorite, and Digital Equipment, the No. 2 computer maker, seems to be joining it on analysts' lists of safe, long-terpicks. Neither stock is cheap, though, so investors looking for a quick gain might want to forage elsewhere. Section O IT, IBM in sales of personal computers to bus1 ness, and Cray Research Inc of Minneapolis, the leading maker of su- Not All Bad in Land of Computers By Pe1 r Coy Monday Morning higher stock) values," Preston said Diamantis forecasts an increase of 8 percent to 10 percent in industry revenues in 1986, but predicts a greater increase in the industrys net earnings because of the emphasis on cutting costs. Among his picks are Digital Equipment and Sperry, the New York-basemaker of computers and defense equipment. Picking established market leaders that can survive a shakeout would be a good strategy this year, said Bud Anderson, editor and publisher of High Technology Growth Stocks, a newsletter in Maynard, Mass. others, Anderson likes Among Compaq Computer, the Houston-basecompany that is second only to d d o d Page 9 B (lorurr Superior Marketing believes consumers will be more than willing to pay a premium for the beverages, even though the presence of the device would diminish the contents of a 12 ounce can by an ounce or two and hike the cost of a single can of beverage by, according to company estimates, about 7 cents per can. Consumer convenience is the major selling point for the device, according to Mr. Brown. He contends money can be saved because ice, ice chests and other items needed to take Douglas E. Brown, president of Superior Marketing Research Corp , has been proclaiming his companys product as a potential breakthrough for the and canned-beveragindustry Judging from the recent price of the companys stock he's been able to convince some people. Superior Marketing, according to Mr. Brown, is in the midst of developaficionados ing a product (high-tecprefer to call it "technology") that automatically cools a can of soda pop or other beverage in its original container. No, the companys product isnt a soft-drin- e h refrigerator or ice cubes, that wouldnt be high-tecenough to attract the interest of a lot of investors. Rather, Superior Marketings product is a small container of carbon dioxide that can theoretically be inserted into a canned drink. "It's a real simple idea," Mr. Brown recently told a gathering of stock brokers and investors at the Marriott Hotel. The beauty of it is that no one has ever thought of it before. Once the container of carbon dioxide the demonstration model looked like a miniature version of a is trigpropane tank and the the released result, gas gered according to Mr. Brown, is instant cold. The outside of the container (which is immersed inside the liquid in the can) frosts over and the temperature of the drink plunges. But there are still a few problems with the company's product, which Mr. Brown touched upon in his presentation. For instance, Superior Marketing hasnt quite figured out how the carbon dioxide container can be inserted into a beverage can during the manufacturing process. Nor has it figured out exactly how it wants the gas, once it is released from the miniature container, to be dispersed although Mr. Brown suggested the final production model could contain a baffle that will release the gas inside the can. Nevermind, Mr. Brown says, all of those problems will be taken care of during the companys research and development stage which is expected to last for the next year or so. He thinks the company will have the product on the market within the next 18 months. Mr. Brown also contends the company has a group of investors on the line willing to fund the final research and development efforts to the tune of $1 million in exchange for a sizeable chunk of company stock. The company currently has 1.9 million shares outstanding. h Computers are taking on an role in society, so the industry that makes them, fluctuations aside, is bound to grow in the long term as well, analysts say. The underlying demand is there. We think corporations recognize the productivity gains you get" from computers, said Michele Preston, who analyzes the personal computer business for L.F. Rothschild, Unter-berever-great- Towbin. On the other hand, because the computer business is on the frontiers of technology, arcane developments can catch the stock market by surprise and produce wild swings in five-gallo- n Ad Campaign Finally Pays Off 4Herb Declared Dead; Long Live Pizza House prices. The problem for the layman investing in technology is that since W.Va. CRAIGSVILLE, youre having such rapid advances, its tough to keep up. Whereas the investment concept of a long-terwas on everybodys tongues for many years, I think now one has to take a said George shorter perspective, Elling, an analyst and vice president at Oppenheimer & Co. Inc. Analysts say the industry slump that began in 1984 and continues to linger this year has forced companies to trim costs, and those that have done the best job of improving their (AP) -- Herb Hamburger, a mythical Craigs-vill- e machinist who coached a Little League baseball team and never ate at Burger King, has died so that others may sup on pizza. Burger Kings advertising team created a mythical Herb, billed as the only American past whose lips a Whopper never slipped. Craigsville business leaders, trying to attract a d restaurant to their town of 2,500, brought their Herb to life last fast-foo- week with an advertising campaign of their own. Burger King and other fast-foo- d chains failed to bite. Ray McCormick, Burwho holds the Charleston-are- a ger King franchise, said a town Craigsvilles size just doesnt seem to have enough of a base for a fast-foo- d outlet. But the town did get a call from state Sen. Oshel Craigo, a part owner of Ginos Pizza & Spaghetti House and Tudors Biscuit World. He said if they would lay Herb to rest, he would bring in a Ginos and a Tudors for the town, said Dock Hinkle Jr., a member of Craigsvilles Business Development Corp. So came the decision that Herb must die. He suffered a whopper of a heart . The entire attack, Hinkle said. town is in shock and grief. A local funeral home donated a casket, hearse and all the trappings for Herb's funeral, which was held Saturday afternoon. . The Tax Report Nearly Half of Taxpayers Hire Help on IRS Forms By Julian Block You are not alone if you think that you' need help to fill out Form 1040. Internal Revenue Service statistics indicate that nearly 50 percent of all taxpayers hire someone to handle that annual chore. If you do use a return preparer, dont be surprised if you are asked to provide detailed information about income, deductions and other items. Although you remain responsible for errors on your return even if you pay someone to complete it, the preparer may have to shoulder some of the blame if the tax liability is understated. The law authorizes the IRS to exact penalties from a preparer. One of the sanctions is a penalty of $100 for an understatement of tax that occurs because of the pre- parers negligent or intentional disregard of the agencys rules and The penalty, which is regu-lation- 27, lW(i Inslant Can Cooler Touted As Possible Breakthrough percomputers Investors should also look into rapidly growing fields like artificial intelligence and local area networks, taking care to stay away from me-toentries and find companies that are in market niches, the experts say. But since the fastest growing fields quickly become saturated with startup companies and overenthusiastic investors, analysts say it can be smart to scan the less popular sectors as well. For example, even though the D.S. semiconductor market has been devastated by slumping demand and Japanese competition, there are still segments that hold promise of rapid grow th, Anderson said. By Bruce Hammond Duffy Januar) s. assessed on a to $500 for a ment. per-retur- n willful basis, rises understate- The hefty penalties that the IRS has collected from accountants, attorneys and other tax professionals underscore the intention of the agency to push enforcement of the negligence rules to pressure preparers to act less like representatives of their clients and more like revenue agents in disguise. As a result, even those g preparers who once seemed eager to go to the mat with the tax gatherers are no longer willing to accept without question all the figures submitted by a client and to fill out a return on the basis of those figures. To protect themselves, most reputable preparers will ask searching questions to make sure that the figures furnished are supported by evidence where necessary, and they may ask for additional information where such information may change risk-takin- the tax effect of the figures furnished. To add clout to its penalty drive, the IRS has programmed its computers to identify preparers and their clients. Consequently, when the IRS wants information about a particular preparer, it can obtain the identities of all clients for whom that person prepared Form 1040s. This provides the IRS with ready access to clients of any preparer hit with a number of negligence penalties, in the event that the agency decides to check out more of the returns he or she prepared. The Internal Revenue Code authorizes a host of other penalties for preparers. There are penalties for, among other things, failing to furnish copies of returns to taxpayers and failing to sign their names or to list their identifying numbers on those returns. On the plus side, the preparer pen alties apply only to people who do returns for compensation. So, they need not concern you if you do your neighbor a favor and fill out his Form com1040. You are not considered pensated if your neighbor insists on inviting you to dinner or mows your lawn in return. Not surprisingly, the preparer penalties are in addition to other penalties that the feds can slap on John or Jane Q. Taxpayer for their own such as improper deductions, late filings or tardy payments. To remind them of their own responsibilities, the IRS issues this yearly warning to individuals who plan to hire help at tax time: You are still responsible for the accuracy of every item entered on your return. Therefore, you should be careful to choose someone who understands tax matters and will prepare a complete and accurate return. mis-cue- (c s, beverages needed. on outings will be not When it was pointed out those items usually go along on outings anyway to keep other foods cool, Mr. Brown said the company doesn't really expect to capture the entire canned beverage market. "We'd be happy with just one percent of the market, he says, stating that approximately 300 million cans of beverages are consumed per day in the U.S. There could be other problems with the product if it is ever developed to the point where it is commercially feasible. Will supermarkets be willing to increase the amount of space they allot for soft drinks and beer in order to offer a choice between the g bevlow volume erages and cans the consumers can take home and either pour over ice or stick into their refrigerators? Will vending machine owners be willing to scrape the millions of dollars of vending machines capable of cooling a can of soda pop merely to dispense a can of soda pop, which because of its price might not sell as well as a regular can? Mr. Brown is of the opinion they will because of the expense that stores and vending machine owners incur to keep products needing refrigeration cold. The price of Superior Marketing Research Corp. stock. Friday was quoted at $1.75 bid $1,875 asked. The price was trading around the $1.00 per share range in December when Superior acquired the rights to the cooling device. It acquired the device by issuing 400,000 shares of stock and agreeing to pay the inventors royalties. high-price- Dont Bo Foolod By Expensive Imitations Heres how to tell the KAYPRO PC from the others. It's the one with two disk keydrives, monitor, and IBM board, standard. And, it's 100 IBM PC or XT compatible. It boasts the best AT-ty- color graphics and perfect high-resoluti- text. Free software, of course. And look for the Made in the U.S. A. sticker. You'll know it's a Kaypro and Kaypro Means Business Chicago Tribune Medio Services -- No Fooling! PRICE: $1350 Trademarks I8M International Business Machines WordStar MicroPro International CORPORATION Rise? 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