The Los Angeles Times from Los Angeles, California • Page 187

I 1 iiiiiiiiiigiwj SECTION FRIDAY JULY 23, 1999 cct MONEY SAVVY WEEKEND, C6 HIGHLIGHTS Greenspan's Rate Warnings Add to Market's Jitters; Dow Off 33 State Moves to Close 17 Brake Depot Stores Giveback The Nasdaq composite stock index has slumped 6.3 from its record high reached last Friday. Weekly closes and latest: By THOMAS S. MULLIGAN TIMES STAFF WRITER NEW YORK Interest rate warnings from Federal Reserve Chairman Alan Greenspan on Thursday added to an already nervous mood on Wall Street, where some investors are hunkering down for a midsummer swoon. Stocks and bonds both lost ground Thursday. And with the dollar tumbling GREENSPAN REMARKS Fed will act quickly should inflation accelerate, chairman says.

C5 to a five-month low against the Japanese yen the opposite of what Japanese officials think is good for their struggling economy Tokyo's Nikkei-225 share index fell nearly 3 to 17,730. The Dow industrials eased 33.56 points to 10,969.22, but the broad market fared worse. The Nasdaq com-Please see MARKETS, C6 Diego. "In 19 of the 20 times we went into their shops, we were oversold other stuff even though the friction line was all we needed." The state attorney general's office has filed an action to revoke car repair licenses at 15 company-owned stores in San Diego County as well as stores in Lake Forest and Costa Mesa. The Costa Mesa store is relocating to Anaheim.

Based on the same investigation, authorities filed a criminal complaint in San Diego against Brake Depot Inc. President Patrick Walby and his brother, Chief Financial Officer Philip Walby. They were charged with misleading advertising, theft and violating a 1996 civil court order that settled similar allegations by the state. In the 1996 case, the company paid $100,000 in fines and consumer restitution, but admitted no wrongdoing. Brake Depot executives said Wednesday they had opened an internal inquiry to address state regulators' findings, but de-Please see BRAKE, C3 July 16: 2,864.48 (j 2,800 A I II 2,600 "lVl 1 2,500 Thursday: 2,684.44 2'40 NiiiiiiiiHttl21800 iimiiimmmnin Women on the Web A look at how the two leading Web sites catering exclusively to women compare.

MARCH APRIL MAY JUNE JULY Source: Bloomberg News Los Angeles Times DOMENICO For The Times of IVillage, left, and Marleen McDaniel, who I frA GINO Candice Carpenter, chief executive Dow Industrials jnjt 10,969.22 500- STOCKS 1 Nasdaq Composite I 2,684.44 'BONDYLD. 30-year U.S, 1 0.06 .1,360.97 GOLD Per ounce I 0.40 in dollars -0 001 SB per dollar i $1.052 MARKETS MORE LOSSES: Stocks were broadly lower as bond yields rose. Nasdaq tumbled 2.8, and the yen surged against the dollar. CI MARKET SAVVY: The big three Internet stocks are again nearing so-called support levels, a troubling sign, technical analysts say. C6 O.C.

Business Plus COURT BATTLE: Ticketing company ETM Entertainment Network will appeal a $15-million verdict awarded to an ex-employee who accused it of stealing secrets. C3 GOING PRIVATE: The founder and other investors of White Cap Industries plan to buy the company, whose stock they believe is undervalued, for about $240 million and take it private. C3 PRISON PROFIT: A Tustin-based company that recycles tires into tiles for playgrounds and basketball courts is building a plant in a prison that will be staffed by inmates. C4 More Orange County Business coverage, C3-C4. TODAY'S NEWS LOWERING TAXES: House Republicans muscled through a bill to cut taxes by $792 billion over the next decade.

Al RAISING THE ROOF: Apartment rents throughout the Southland rose to record levels over the last year. Al STRANGE NEIGHBORS: Ma- libu's moneyed Zumirez Drive has become a target of U.S. officials seeking to seize homes from residents accused of narcotics trafficking and credit card fraud. Al BARBIE BOOM: Mattel, the world's biggest toy company, said second-quarter profit rose 81. C2 CHINA DIALOGUE: A U.S.

trade official's invitation to Beijing is seen by the Clinton administration as a hopeful sign talks may resume on WTO membership for China. C5 MONEY SAVVY WEEKEND DEFINED BENEFITS: Traditional defined-benefit pension plans affect nearly half the working households in America. There are ways to avoid costly mistakes before payout time comes. C6 ADVERTISING A MARKETING WEB OF WOMEN: IVillage and Women.com are battling for recognition as the top women's Web site in a market that has exploded into a high-stakes battle for customers and advertisers. CI a a- i 7.

psiff NASD BLUE: Under regulation chief Mary Schapiro, the National Assn. of Securities Dealers is toughening its long-ridiculed brokerage oversight. First of a series. BRAZILIANS ALOFT: The world's hottest plane builder is Embraer, a former state-owned firm in Brazil that is shaking up the booming market for smaller passenger jets. Headquarters: New York CEO: Candice Carpenter Founded: 1995 Audience: About 4 million visitors each month Key sponsorsadvertiserspartners: NBC, Ford Motor, Charles Schwab, Ralston Purina, Kimberly-Clark Content: At least 16 areas that are devoted to such topics as family, health, work, money, food, relationships, astrology and travel.

Other Information: Went public March 1999 Headquarters: San Mateo, Calif. CEO: Marleen McDaniel Founded: 1992 Audience: More than 4 million visitors each month Key sponsorsadvertiserspartners: Hearst, Microsoft, Toyota, IBM, Hallmark, Bloomberg Content: A network of sites, including Women.com, HomeArts.com, Astronet and Hearst magazines' Web sites. Women.com has 20 topic areas. Other Information: Filed for an initial public offering Sources: IVillage, Women.com Car repair: Chain is accused of defrauding customers. 2 O.C.

shops are affected. Firm's executives defend record. By ROBIN FIELDS TIMES STAFF WRITER State regulators moved Wednesday to shut down 17 Brake Depot shops in Southern California, two of them in Orange County, accusing the repair chain of a bait-and-switch scheme to defraud customers. An undercover sting by the California Bureau of Auto Repair revealed a pattern in which San Diego-based Brake Depot lured customers by advertising a $99.98 friction reline, a common brake repair, then sold them unnecessary services costing hundreds of dollars more, regulators said. "It's an egregious case," said Ken War-dlow, the agency's program manager in San ANNE DOWIE For The Timet heads rival Women.com.

Los Angeles Times for its own public offering of stock and in January lined up a joint venture with women's magazine publisher Hearst Corp. to create a large online network for women. Through its joint venture, Women.com reaches more than 4 million women each month. The race to reach women on the Web comes after initial assumptions that men would remain the dominant force on the Internet. However, women now represent the fastest-growing segment of the online population, and because so many Web sites cater to men, women are seen as Please see INTERNET, C8 KAHI KkiNK HALL Los Anp-lwi Times $15 million theater, has no plans to close it.

used for both public and private events such as banquets, proms, weddings, fashion shows, musical events and comedy shows. "We are converting to a multipurpose entertainment facility," Drake said. "The Please see THEATER, C.l i. t-f-n-Mi Fiij smuts "I ADVERTISING MARKETING Rivals Battle to Be New Online Force Mortgage Unit Put on the Block Financial services: The tax preparer wants to sell Irvine's Option One to concentrate on retail businesses. By EDMUND SANDERS TIMES STAFF WRITER Block Inc.

says it is looking to sell its Irvine-based wholesale mortgage unit, Option One, in an effort to focus on its retail businesses. Founded in 1992, Option One specializes in mortgages to customers with bad credit, originating about $3.6 billion in loans over the last year. That makes the company which employs 1,500 people nationwide, including 600 in Orange County slightly larger than Orange-based rival Long Beach Financial which recently agreed to sell itself for $350 million to Seattle-based Washington Mutual. Kansas City, Block bought Option One in 1997 from a unit of Fleet Bank as part of a diversification into nontax businesses. Now company officials say they want to sell all or part of the Irvine unit and use the money to expand into other retail businesses that deal directly with consumers, rather than relying on brokers.

"Option One has experienced tremendous growth, more than tripling its loan originations since we acquired it," said Frank Salizzoni, chief executive at Block. "While we are confident in the continued growth of Option One, this step reflects Block's efforts to more narrowly define our focus on our retail business Please see BLOCK, C4 Compaq Insider Will Lead the Troubled Firm Technology: Michael Capellas is elevated to chief executive. Some analysts expected a well-known outsider to take the reins. By ASHLEY DUNN TIMES STAFF WRIIER After a difficult three-month search, Compaq Computer on Thursday tapped a fast-rising insider Chief Operating Officer Michael Capellas to become chief executive and president, charging him with the daunting task of resurrecting the fortunes of the floundering, $31-billion giant. The promotion of Capellas, 44, comes during a tumultuous period for Compaq following the forced resignation of Eckhard Pfeiffer as its chief executive in April and the subsequent departure of several high-ranking executives.

Since Pfeiffer's ouster, the company has endured a sometimes embarrassing search for a new leader. One candidate withdrew from consideration and several others questioned whether it was a job worth having amid the company's turmoil. Adding to the unattractiveness of the job was the oversight of Chairman Ben Rosen, the co-founder who had forced out two Compaq CEOs, Pfeiffer and Rod Canion, in less than 10 years. But at a news conference Thursday, Rosen spread the message that Compaq is leaving Please see COMPAQ, C8 IVillage, Women.com are in a race to be the top portal catering to women, the fastest-growing segment of the Internet population. opposite coasts, IVillage and Women.com, are engaged in a neck-and-neck fight for recognition as the top Web site for women.

New York-based IVillage insists it is the leader, with 1.6 million registered members, roughly 4 million visitors a month and a slew of blue-chip sponsors trying to reach its savvy, 25-to-49-year-old female audience. Meanwhile, San Mateo, Women.com recently announced plans N.Y.'s Ogden which bankrolled the The shows were further reduced to three times a week in June. Drake said New York-based Ogden which bankrolled the $15-million theater, has no plans to close it. In addition to the corporate awards shows, the theater will be By DIANE SEO SPECIAL TO THE TIMES With increasing numbers of women turning to the Internet for everything from horoscopes to stock tips, the women's online market has exploded into a high-stakes battle for customers and advertisers. Two companies with headquarters on Public's Invitation to O.C.'s Tinseltown to Be Rescinded Eateries: Citing lackluster attendance, Anaheim dinner theater will switch its Hollywood awards show to group events.

By GREG HERNANDEZ TIMES SIAEF WRITER Tinseltown Studios, which has struggled with attendance since its opening, will close its doors to the general public Aug. 1 and limit its Hollywood awards show to corporate events, general manager Ron Drake said Thursday. When it opened last November, the Anaheim dinner theater offered twice-nightly shows six days a week. Within a month, the shows were reduced to one per night four times a week because of slumping ticket sales. There were two shows on Saturdays..