The Cincinnati Enquirer from Cincinnati, Ohio on October 10, 1991 · Page 63
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October 10, 1991

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The Cincinnati Enquirer from Cincinnati, Ohio · Page 63

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Cincinnati, Ohio
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Thursday, October 10, 1991
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BUSINESS NEWS: 369-1962 THE CINCINNATI ENQUIRER THURSDAY, OCTOBER 10, 1991 F-7 Amex stocksF-8 Mutual fundsF-8 NASDAQ seIectF-10 NYSE stocksF-9 0)f (q Portfolio City out of options for Waterfront BY JEFF HARRINGTON The Cincinnati Enquirer Covington City Manager Greg Jarvis 3100 3050 3000 2950 2900 said Wednesday that the city is trying to keep The Waterfront restaurant on its shores but conceded that "there may not be an option at this point." h Jnnn restaurant was intended to rest on a floating barge, but it has been sitting on land since May. The city, which leases the river space to Ruby and his partners, maintains that the Waterfront should pay for dredging as a part of routine, annual maintenance. "Our position has been it's not our responsibility per the development agreement," Jarvis said. Arrangements are being made for further talks, but the city will not consider paying even part of the dredging cost, he said. He could not specify any options that might be left. Neither Ruby nor Jarvis would give an estimate of how expensive it would be to dredge the area under the restaurant. Ruby said four other major cities are interested in The Waterfront; he denied speculation that the restaurant is for sale. Last week, developers of Covington Landing confirmed that they might sell the Spirit of America paddlewheeler, part of the Covington Landing entertainment complex. Despite back-to-back trouble spots, Covington officials still have high hopes for riverfront development. "There's no question the economy has not been conducive to the entertainment business in general. Certainly, restaurants are included in that," Jarvis said. But he described the Covington waterfront as "the most attractive spot on the Ohio River without question." Waterfront majority owner Jeff Ruby said Tuesday that he was considering moving the restaurantnight spot out of mm WW mm a K a E 2850 iy k UMU UUUU town because Covington would not pay the costs of dredging around the barge. The OU 1 J 4 7 o 9 Sept. Oct. Dow Jones 30 Industrials Dally highs, with closes at arrow tip Area-Interest stocks In Industrial average (NYSE change from previous day) AT&T -38 GE-158 P&G 18 Cincinnati Stock Exchange volume Wednesday 1,546,500 Camden couple hopes to hatch a moneymaker They're pushing low-fat ostrich meat ft u ;?. V ifcxvr'Y still isn't much demand nor sufficient supply to justify a year-round slaughter market for the birds. As many as 100,000 ostriches would be needed to back up the business, but there are now only about 8,000 ostriches on U.S. farms, according to the 650-mem- BY MARK BRAYKOVICH The Cincinnati Enquirer CAMDEN, Ohio In late July, more than 100 people jammed into a room to hear Mike and Rhonda Cottingim describe how to make a financial killing with a hot, new invest ber American Ostrich Associa - - t t ' ' t -. it " 4 -r$ J 'it ! '.1 - yi , -c L ment. But as investment seminars 4? ... - 'JS -V iliiit V".'"''; S rfaf.W-' ff -hrWB fi$kdh& t Ostrich facts tion in Fort Worth, Texas. The numbers are low because the industry is still in its infancy, hatched in 1986 when ostrich exports from South Africa, which has long dominated the market, were curtailed because of the U.S. government's stance against apartheid. That meant Americans would have to start raising their own ostriches if they hoped to emulate the success in Europe. So far, the industry's youth has been a boon to U.S. ostrich breeders. "If you sell a year-old ostrich for slaughter right now, the best you can get is $1,000," Mike said. "But if you sell them for breeding, the same ostrich can sell for $10,000 to $15,000." go, this one had a twist: Instead of the usual verbiage about investing in stocks, real estate or some newfangled limited partnership, the Cottin-gims were talking about a bird of a much different feather. Ostriches, that is. "We were pleased with the turnout, because a lot of people kept telling us we were nuts," Rhonda said. And while the mention of ostrich farming still moves some to "roll their eyes at us," she said, the Cottin-gims are bullish on the giant African birds with a reputation for being able to kill with a single kick. Although ostriches once were known largely for their nerdy looks, valuable leather and fashionable Dow resumes downward spin Stock prices fell Wednesday, resuming their recent retreat amid worries about corporate earnings prospects. The Dow Jones average of 30 industrials dropped 17.44 points to 2,946.33, wiping out most of Tuesday's 21.02-point gain. The average fell 69.77 points from last Thursday through Monday. Declining issues outnumbered advances by almost 2 to 1 on "the New York Stock Exchange. Big Board volume came to an estimated 186.60 million shares as of 4 p.m. EDT, against . 170 million at the same point in the previous session. P&G makes a 'best' list ,' Procter & Gamble Co. is the seventh best performer on Corporate Finance ' magazine's listing of the top 1,000 industrial and nonfinancial service firms. The magazine, in its Oct. 29 issue, ranks companies by "market value added" a formula that accounts for debts, leases, securities and profits in addition to equity value. It lists P&G's market value at $20.4 billion. P&G executive leaves Barbara S. Thomas has resigned as . general manager of cleaning and personal . care products at Procter & Gamble Co. to become senior vice president of marketing for Nabisco Biscuit Co. Thomas, 41, joined P&G in 1973 and became a general manager in 1989. In her new job, Thomas will oversee Nabisco's marketing, new business development and strategic plan- ning. Artzt to discuss quality Procter & Gamble Co. Chairman Edwin L. Artzt will be featured in Quality ...or Else, a three-part public television series about quality management that begins Sunday. Artzt will talk about P&G's glob-. alization and total quality emphasis in the first installment of the series. In Cincinnati, the program will air on WCET-TV (Channel 48) at 11 p.m. Ethicon refinement OK'd Ethicon Inc., the Blue Ash maker of surgical supplies, said Wednesday that the Food and Drug Administration has approved a refinement of its recently introduced hernia repair stapler. The Endopath EMS-30 endoscopic stapler allows surgeons to use up to 30 staples without reloading while performing endoscopic hernia repair. The first endoscopic stapler for hernia surgery, introduced by the Johnson & Johnson subsidiary last month, fired only one staple at a time. Endoscopic surgery, which eliminates the major incisions required in typical hernia surgery, is less painful and dramatically reduces recovery time. The EMS-30 costs about $200, and shipments begin this month. The new stapler was designed and ' launched in only eight months, Ethicon said. Circle K shares sold A group consisting of Carl H. Lindner, American Financial Corp. and the Charter ' Co. said it disposed of 7,536,357 Circle K - common shares and 475,000 series A preferred shares to a director of the company in exchange for a 3-year i $750,000 promissory note. In a filing with the Securities and Exchange Commission, the group said that Sept. 30, it disposed of ' " the common shares and series A preferred ' "'shares, which represented all of the Circle ! .'K common stock and series A preferred '.'"stock held by the group, to Joseph A. :Pedoto, a director of Circle K. ' Credit charges settled McDonnell Douglas, Macy's and two Enquirer photos by Jim Callaway Mike and Rhonda Cottingim have to put up 7-foot fences to keep their ostriches in their pens. Adult ostriches can stand 8 feet tall, although females are usually a bit shorter. They can weigh 300 pounds or more. Males have black feathers; females have gray feathers. An average ostrich eats 5 pounds of feed a day, meaning it costs about $300 a year to feed one bird. The average, full-grown ostrich carries about 100 to 150 pounds of red meat. An ostrich has enough skin to make 6 pairs of leather boots, which typically retail for $60 to $100. Source American Ostrich Association, Enquirer research. A- . I'M I m Ml' 'If If mii S I. m 7, st m i mini or What's more, a proven breeding pair can bring $60,000 or more. The price might seem steep, but a pair can generate as much as $120,000 annually from the sale of their chicks. In fact, the Cottingims expect to hit the break-even point by the end of 1992, after just two years in the business. Those results would please a couple that, up until two years ago, had never given much thought to ostriches. (Please see OSTRICH, Page F-10) feathers, farmers like the Cottingims are betting that health-conscious Americans will soon develop an appetite for ostrich meat. The reddish meat already is popular in Europe, where promoters successfully pushed it as a beef substitute with lower fat and cholesterol than beef, turkey and chicken. "It grills up just like steak, and tastes just as good," Mike said. "It kind of looks like cube steak." Sound yummy? It might be some time before most Americans will get a taste, since there - 1 'LJt Erik Cagnina, left, and Brent Walker, both seniors in finance at Miami University, hold ostrich chicks at the Cottingims' farm. The two are trying to convince universities to provide research on ostrich survival. Executive Life up for bids Insurance industry could benefit from outcome P&G watchers drop earnings estimates other companies settled charges tnat tney 'didn't tell unsuccessful job applicants that rrpiKt infnrmatinn had ficured into their .nil California Insurance Commissioner John Garamendi goes even further, saying he believes Executive Life "will become a model (that) will be used in the future. We've applied a business solution rather than a governmental one to a business problem." State regulators seized Executive Life in April amid charges that the company was collapsing under its junk-bond load. Executive Life invested $6.4 billion of its $10.1 billion in assets in the high-risk securities that fueled the takeover binge of the 1980s and subsequently lost much of their value. $1.50 from $1.57, and Andrew Shore of Prudential Securities moved to $1.53 from $1.56. At Kidder, Peabody & Co. Inc., Jay Freedman reduced his estimates to $1.50 from $1.57 for the quarter and to $5.05-$5.10 from $5.30 for the year. Artzt said the recession and investments to introduce new products and protect current ones from competition hurt profits for the quarter. "I think they spent more money than we anticipated," Austin said. THE CINCINNATI ENQUIRER Procter & Gamble Co.'s stock rebounded slightly' Wednesday, a day after P&G said its first-quarter earnings would drop and some Wall Street analysts dropped their estimates of P&G earnings. The stock was up 12'M a share to $81.872 for the day. The stock tumbled Tuesday falling $2 to $81.75 after Chairman Edwin L. Artzt said earnings for the quarter ended Sept. 30 would be "slightly below" last year's $1.57 a share. In reaction, Bonita Austin, analyst at Wertheim Schroeder, cut her first-quarter estimate to Life Insurance Co. of Los Angeles will be felt throughout an entire industry that in the past year has been plagued by declining assets, a major loss of consumer confidence and the seizure by regulators of a handful of big companies. "The outcome of this bid will go a long way to describe how well the insurance commissioners and the industry can bail out impaired situations," said Michael Smith, an analyst at Shear-son Lehman Brothers Inc. in New York. "If there is a big downside, there will be continued concern about other companies." BY MARIANN CAPRINO The Associated Press NEW YORK As Friday's deadline looms for Executive Life takeover proposals, regulators in California are lauding their success at having created a bidding war to resurrect one of the nation's largest failed insurers. But detractors say it remains questionable whether policyholders will be made whole from the auction, a largely untested experiment where the bidders range from a French consortium to a Hollywood record producer. Both sides agree, however, that what happens to Executive rejections, federal regulators said Wednesday. The Federal Trade Commission said the agreements were reached with St. Louis-based aerospace giant McDonnell Douglas Corp., R.H. Macy & Co. Inc. of New York, Keystone Carbon ' Co., a metal parts and bearings manufac-, turer based in St. Mary's, Pa., and The Kobacker Co., a Columbus, Ohio, company that owns 750 retail shoe stores in 25 st3tes Compiled by Dick Benson from staff and news service reports

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