Reno Gazette-Journal from Reno, Nevada • Page 20

Reno Gazette-Journal USIN WEDNESDAY FEBRUARY 24, 1993 STEVE FALCONE, BUSINESS EDITOR: PHONE, 788-6322; FAX, 788-6458 (HB ss Stocks Feb. 23, 1993 Dow Jones Ind. Irs i Close: 3323.27 Vol. at 4 p.m.: 321 .0 million Vol. ext.

session: 8.0 million SolO act: The pursuit of self-discovery, and not romance, will be the focal point of TV ads for Wings, a perfume from Giorgio Beverly Hills. The heroine of the ad doesn't depend on the charms of a man for her happiness. Instead, she finds it by running through forests and gardens and ascending a symbolically charged staircase. Her only meeting deals with her inner child. The ads begin in March.

United Way: Chuck Alvey, general manager of KOLO-TV, will serve as 1 993-94 campaign chairman of the Northern Nevada and the Sierra group. "Although the campaign doesn't kick off until September, I'm already recruiting a strong campaign team so we can start planning ahead of schedule," Alvey said. 1 3500 i i Boomtown 13V2 Caesars World 40 -4 Circus Circus 42V4 -1Vz Hilton Hotels 45 Int'l Game Technology 51 -Vs Jackpot Enterprises I8V4 -1 Promus Companies 52 -3a Sands Regent 27 1V4 United Gaming 5 -V Alpine Meadows Alta Gold Vs Amfed Financial 17 -Vs Amservlnc. 1 R.R. Donnelley 29 3s Bay Mines 5ss FirstMiss Gold 6 516 FMCGold 434 V4 50V2 -V2 Construction 19V2 -V2 Air unit 1 8V2 Va Pacific 20 Southwest Gas 15V8 3350 'mmnr" 33oo Treasury auction: Yields on two-year Treasury notes fell in Tuesday's auction to the lowest level on record.

The average yield was 3.94 percent, down from 4.28 percent at the last auction on Jan. 26. It was the lowest rate since regular auctions of two-year notes began in September 1 974.The notes will carry a coupon interest rate of 3 percent with each 10,000 in face value selling for $9,987.60. Bonds: A powerful rally continued in the bond market Tuesday, with the 30-year Treasury bond's yield hitting a new low following a gloomy report on consumer confidence. The price of the Treasury's main 30-year bond soared 1 13-32 points, or $14.06 for every 1 ,000 in face value.

Its yield, which moves in the opposite direction from price, plunged to 6.82 percent, the lowest ever since the government began selling 30-year bonds in 1977. Alvey 4-f -f-l 31 50 444-H3100 Gannett Co. Directors of the media company, owner of the Gazette-Journal, declared a quarterly dividend of 32 cents per share, payable on April 1 to shareholders of record on March 1 2. GAMING Industry stocks take tamMe Gaming stocks WTFMT Stocks, page 4B crude $20.48 $0.24 $331.10 $2.90 $3,580 $.057 18'4, down $l3s or down 7 percent. IGT: The world's largest slot machine maker's stock closed at $51 down 'g on more than twice average daily volume at 2.2 million shares.

Its stock had tumbled $5'2 or 9.73 percent on Monday. Reno-based financial analysts who follow gaming, cited a variety of reasons for Tuesday's gaming stock downturn, but they also predicted casino stocks will rebound soon. In addition, they said it's unlikely the Clinton administration would be able to pass any substantial nationwide casino industry tax increase. Phyllis Moen, a Kemper Securities vice president, cited several factors for the stock decline: Skittish: Uncertainty in the overall stock market, as investors worry about the effects of Clinton's tax proposals. The rise and fall Depsite Moday's $5 12 decline, of IGT stock has nearly doubled past year.

March! April May June I July Aug. Source: INTL Game Technology I I i i i Echo Gannett Granite Reno Sierra Company Jan. 1 Feb. 1 Feb. 23 Bally Gaming 12 9V2 Boomtown 14 1614 1312 Caesars World 38 43 40 Circus Circus 56 54 4214 Hilton Hotels 43 48 45 IGT 50 64 51 Jackpot 19 23 18V4 MGM Grand 19J4 26J 207a Mirage 32 40 33 Promus Cos.

55 6OV2 52 Sands Regent 22 2514 27 Showboat 16 16te 1538 United Gaming 6 7 5 yrs4-23R 40 1 51 38 11 I o- i i i 2 i i 110 Jan. 27 Benchmark Gold (N.Y.) Silver (N.Y.) By Wayne R. Melton GAZETTE-JOURNAL The stocks of all but one of the major gaming companies with Nevada gaming operations tumbled in value Tuesday, amid concerns the Clinton administration will slap higher taxes on the casino industry. Among the day's biggest losers was Caesars World, which closed down $4 at $40, a 9 percent decline. Only Hilton Hotels Corp.

remained unchanged at $455s. Other major losers for the day were: Promus: The parent company of Harrah's closed at $52, down Mirage: Closed at $33'4, down $2's, a 5.9-percent value loss. Circus Circus: Down 1 V2 at $42'4, a 3.4 percent loss. Jackpot Enterprises: At hotel. Gov.

Bob Miller drew a laugh when he bowed before an 8-foot lion character sitting on a throne. "I figure any king that can bring that many jobs deserves a bow," Miller told the audience. The resort will produce some 8,000 direct jobs and 20.000 indirectly, the governor said. "The chance to carry on the MGM tradition is the chance of a lifetime," said Larry Woolf, chairman, president and CEO of MGM Grand Hotel, Inc. MGM is one of three gaming companies engaged in a major shift to the family-oriented tourism market.

He and Eisner assured the 8.000 or so investors at the Anaheim Convention Center that the two were confident about the long-term prospects of the sprawling European attraction. The two noted that the original Disneyland and Florida's Walt Disney World opened to dismal initial business and gloomy predictions. Wells, referring to the EuroDis Earth Window: Because of a photographer's error, a man working on the Native American Museum in the Town Center was misidentified. He was James Mortensen. BRIEFING Stock market finishes mixed NEW YORK The stock market ended narrowly mixed Tuesday as investors tried to sort out the implications of President Clinton's economic plan and of a research report showing consumer confidence in decline.

Health-care and biotechnology stocks, which have plunged in recent sessions, recovered slightly. The Dow Jones average of 30 industrials fell 19.72 points to 3,323.27. Advancing issues outnumbered declines by about 8 to 7 on the New York Stock Exchange. Volume on the floor of the Big Board came to 32 1 .04 million shares as of 4 p.m., up from 311.53 million in the previous session. Consumers lost confidence in February- NEW YORK Consumer confidence tumbled in February after a sharp rise late last year, a surprisingly strong reversal that reflected renewed anxiety about the country's economic future, a widely followed survey reported Tuesday.

The Conference Board research group's survey was taken amid a new round of big-time corporate layoff announcements and before President Clinton announced his economic plan. The Conference Board index of consumer sentiment tumbled nearly 8 points in February to 68.5, compared with a 76.7 reading in January, 78.1 reading in December and 65.6 reading in November. The index, calculated on a base of 1 00, is derived from a survey sent to 5,000 households nationwide. 2 more Japanese firms consider layoffs TOKYO Nissan Motor Co. and Nippon Telegraph and Telephone Corp.

on Tuesday joined the growing list of Japanese companies forced by the recession to announce or consider cuts in their work forces. Nissan, Japan's second-largest car maker, said it would cut its Japanese work force by 5,000 to 48,000 over the next three years because of the severe sales slump that has affected a broad range of Japanese businesses. The reduction will be made through attrition and reduced hiring of new workers, the company said. NTT, meanwhile, said it is studying a plan to slash its work force by 30,000, or 1 3 percent, over the next four years. New president named for Home Shopping ST.

PETERSBURG, Fla. Gerald Hogan, who spent 1 9 years at Turner Broadcasting System has been named president and chief executive of Home Shopping Network the company said Tuesday. The announcement was made by Roy M. Speer, board chairman of the video retailer. Speer, who previously held the position, continues as board chairman.

He also will serve as an advisor on daily activities. In accepting the job, Hogan said HSN was "well positioned to lead the way into the next generation of interactive television." Hogan will be responsible for overseeing operations and direction of the company. Hogan had been at Whittle Communications LP. since October 1990. Wire service reports Star a (fi IGT plans future stock split, dividend Taxation: Worried that all corporations, not just gaming companies, will pay higher taxes overall thereby cutting net profit.

Speculation: Gaming stocks overall have been trading at prices higher than would be warranted based on current earnings levels. Yet investors have pushed up stock prices in anticipation of continued strong revenue gains because of the spread of gaming. This is standard for any industry in which revenues are expected to surge, Moen said. However, when the overall market becomes skittish, such stocks often are the first to slide in value, she said. "It's a case of every day there's a new victim, on the market," said Chuck Bratton, a Prudential Securities broker in Reno.

"People are uncertain of where to go, and if they've got profits they're taking the profits." of IGT stocks the price in the Oct. Nov. Dec! Jan. Feb. 23 Mark NowlinGazette-Journal IGT share an investor currently owns, he or she will receive one additional share at no charge.

IGT has had numerous stock splits in the past 1 0 years, the most recent in March 1991. Financial analysts say publicly traded companies split stocks for various reasons. They include lowering the immediate-term per-share values, in order to make them more affordable to average investors. Also Tuesday, Standard Poor's, which rates corporating finance instruments, upgraded its ranking of IGT's convertible subordinated debt. "IGT's rating reflects the company's conservative financial profile, strong profitability and good near-term growth prospects, tempered by its relatively narrow business position," the service's report said.

I Question and answer: A local analyst gives his assessment of IGT stock. 5B year. Revenues up: Company-wide revenues rose 23 percent in 1 992 to a record S7.5 billion, while profits surged 28 percent to $817 million. Protest: Demonstrators dressed as Ninja Turtles greeted shareholders by protesting a Walt Disney World expansion they say will bury thousands of tortoises alive. m.

rm Associated Press TAKE A Gov. Bob Miller bows before mony for the new MGM Grand Hotel and Theme "King Looey" Tuesday during a "topping off" cere- Park. Ceremony marks MGM progress Huge project: Opening set for February 1994. LAS VEGAS (AP) The MGM Grand Hotel and Theme Park a $1 billion investment toward this city's goal as a family destination resort moved a step closer to reality Tuesday with a "topping off' ceremony. A concrete slab bearing a symbolic tree and two American flags was hoisted 30 stories to the top By Wayne R.

Melton GAZETTE-JOURNAL One day after its stock decreased 9 percent in value, International Game Technology announced Tuesday it had performed so well that its stock will soon be split and the company will issue its first cash div idends. "The news out of here is very positive," said John Klacking, a Reno financial analyst and stock broker who attended IGT's annual shareholders meeting in Las Vegas on Tuesday. While the meeting was underway at IGT's Las Vegas business office, IGT shares closed on the New York Stock Exchange at Among developments announced at the shareholders meeting: Dividends: The first-ever regular cash dividend is set to be issued quarterly at 3 cents per share. The payments are to begin during the third quarter, ending June 30. Split: The stock will be split 2-for-l.

That means for every one neyland weekend numbers, said they had saved that good news for the shareholders meeting. Hockey team: Eisner said in a news conference he was unsure whether a planned professional Disney hockey team would debut as an expansion franchise in the next National Hockey League season. Disney faces a March 1 deadline from the league if it is to put a team on the ice later this of the hotel, which will be the world's largest when it opens in mid-February 1994. Some 400 business and civic leaders gathered atop the resort's 5.000-car parking garage to watch the ceremony, symbolizing completion of the exterior of the sprawling emerald green hotel. Characters from the Wizard of Oz helped to introduce speakers.

The Oz characters will be major players at the park. At the end of the ceremony, 5,009 green helium-filled balloons were released and floated down the Strip. Each balloon contained a tab providing the finder a free night's lodging at the new Eisner said. That compared with 28.000 visitine the orieinal Ana heim park on Sunday, a mostly sunny day in Southern California. Disney President Frank Wells declined to say when EuroDisney SCA, the themc-park parent company 49 percent owned by Disney, would turn a profit.

But repeating earlier statements, he said it would continue to lose money next quarter. i EuroDisneyland a hit despite losses, investors told ANAHEIM. Calif, AP) De spite recent losses of SI million daily, EuroDisneyland is attracting "sensational" business during France's snowy season, Walt Disney Co. officials said at Tuesday's shareholders meeting. The theme park near Paris, which opened last vear.

attracted 34,000 visitors Sunday, 28.000 on Monday and about 30.000 on Tuesday, Chairman Michael.