The Desert Sun from Palm Springs, California • 27

ilmtmi 11'aiiliW1 -nYi iat effwmrsy i way pW4pwWWIHI aumfrMa i frf mj'idttfj 1 iinil-ni'iwiTirftlt The Desert Sun Inside: Stocks C2-3 Classified C5-12 FRIDAY March 6 1992 Gavin Murphy Business Editor: 778-4650 Regrets attend news of closure Over the years OCTOBER 1967: I Magnin is the first store to open in the Desert Inn Shopping Plaza (now known as Desert Fashion Plaza) replacing a small shop in the El Mirador hotel that closed in 1942 when the Army took over the hotel APRIL 1988: RH Macy Co purchases I Magnin Bullock's and Bullocks Wilshire from Federated Department Stores FEBRUARY 1990: RH Macy Co renames its Bullocks Wilshire stores I Magnin adding the I Magnin name to Palm Desert Town Center and adding a second I Magnin which it later closes in downtown Palm Springs one block south of the existing I Magnin in Desert Fashion Plaza MARCH 1992: RH Macy Co announces it is closing five of its I Magnin stores including the one at the Desert Fashion Plaza in Palm Springs Merchants bemoan loss in Palm Springs of I Magnin store By GAVIN MURPHY Business Editor PALM SPRINGS Customers and merchants reacted with a mixture of shock and sadness to the news that I Magnin will no longer be a high-profile retailing fixture in downtown Palm Springs think awful" said Sheila Spivack manager of BB1 sportswear store located next to I Magnin in the Desert Fashion Plaza Magnin was a big draw to the mall" sad All the good stores are going out of said Diane DeFrancisco of Chicago and Palm Springs when told as she walked out of the store Thursday morning that I Magnin was closing one of my favorite said Laura Ellis of Rancho Mirage who has shopped at the Palm Springs store for 20 years She said store employees often called her to let her know about new merchandise a little sad about going to happen to she said Store employees were not permitted to talk to reporters and all questions concerning the closure were forwarded to corporate spo-kespeople in New York would say it's going to be bad for said Vera Reed who was working behind the counter at Boutique going to throw a curve to everybody Most merchants expressed hope that the 40000-square-foot space occupied by I Magnin will soon be taken by a new tenant ANDY GOMPERZThe Deiarl Sun LAST WALTZES THROUGH I MAGNIN: Shoppers past the I Magnin department store on Thursday in the Desert Fashion Plaza in Palm Springs walk one of five that are scheduled to be closed Closings portend sale of division Be aware that some financial Institutions credit unions savings and loans and mutual savings banks refer to the payments they make on their deposit accounts as "dividends" But these payments are actually interest at least as far as the tax code is concerned and must be reported as interest on your tax return If you report the payments as dividends you're likely to receive a query from the IRS You should receive a Form 1099-INT from these institutions showing the amount of interest to report Good news is bad for stocks: Dow off 2706 The stock market declined broadly for the second straight session Thursday weakened by increasing doubts about the chances for any further crediteasing by the Federal Reserve The Dow Jones average of 30 industrials fell 2706 points to 324150 on top of Wednesday's 2169-point drop Interest rates rose in the bond market as traders confronted a new bit of stronger-than-expect-ed data on the state of the economy Prices of long-term government bonds fell more than $5 for each 31000 in face value increasing their yields to around 796 percent Milken settlement rejected by officials NEW YORK Federal thrift regulators rejected a proposed $13 billion settlement of civil lawsuits against former junk bond king Michael Milken The surprising collapse in the deal Thursday between the Federal Deposit Insurance Corp and the imprisoned Drexel Burnham Lambert Inc financier stymies efforts to resolve multibillion-dollar lawsuits stemming from the collapse of more than 40 savings and loans Insurance industry has profit jump in NEW YORK An analysis of the regulatory filings of 75 large life insurers which represent 55 percent of the industry's total assets showed an 185 percent jump in surplus capital last year said Townsend Schupp Co a Hartford Conn-based consulting firm our anchor!" said Jennifer Pratz an assistant manager at Hot Cha Cha located near I Magnin think it will affect business That's too added Leticia Ayala also an assistant manager at Hot Cha Cha Bill Short owner of Desert Events and president of the Desert Fashion Plaza Merchants Advisory Committee said the closure was an example of how a retail chain's economic problems can have a dramatic local impact I Magnin and a 50000-square-foot Saks Fifth Avenue store have been the anchor stores of Desert Fashion Plaza which has 65 merchants said Lee Haven general manager for the mall Haven said he started talking with other potential tenants for the space after parent company RH Macy Co began to experience financial difficulties Merchants on Thursday said there have been rumors for at least the past year that the store was going to close Still word of the closure was a jolt to many to take over Federated Department Stores Inc in 1988 But analysts have said the purchase of the chain and Federated's Bullock's division was the straw that ultimately landed Macy in bankruptcy court in late January Finkelstein took I Magnin and Bullock's as consolation prizes paying $11 billion The company already was juggling debt from its $358 billion leveraged buvout in 1986 The Associated Press The I Magnin closings could be a prelude to a sale of the division said Joanne Legomsky an analyst with Standard and Corp probably would like to get rid of it at some point" she said Closing underperforming stores would make I Magnin more attractive to possible buyers Ironically I Magnin was one of the jewels coveted by RH Macy A Co chairman Edward Finkel-stein when he unsuccessfully sought Stock picker sees gains of 30 for drug stocks iMNNwuRrHii Retail sales jump overall in February March 5 1992 Figures In billions of dollars exact reporting periods as shown percent change from the same period a year earlier Same store sales are for stores open at least one year Monthly sales reported by the largest retail chains one of many factors in the fever chart of a troubled economy indicated Thursday that an unusually large number of Americans were buying again in February a sales month that usually is sparse Sales were strong not only at traditionally robust retailers like Wal-Mart Stores ECONOMY: Jobless claims fall by 21000C4 Inc the nation's largest retailer but also at stores with more checkered records like JC Penney Co and Federated Department Stores Inc which op erates Bloomingdale's and other chains Ronald Nordmann 50 one of the best drug analysts around prescribes the stocks of a number of big drug companies The reason: He sees robust stock gains of about 30 percent in 12 months after a hefty 61 percent rise in 1991 His rosy view is at odds with those of a number of pros who are selling big growth stocks including drugs Their rationale: Bigger bucks can be made in economically sensitive or cyclical stocks once business perks up Reflecting this drug stocks have lagged the market this year with about a 7 percent drop Nordmann however feels his favorites will do just fine even in a ho-hum economy People still need medicine especially the growing elderly Also we have a record number of doctors about 600000 to write even more prescriptions Likewise he notes 30 new drugs were approved last year the most since '61 He's also encouraged by several government proposals to further speed up the approval process His top play: Bristol-Myers Squibb Other favorites: Merck Co Pfizer and Syntex Corp Nordmann an industry tracker 25 years made Institutional Investor magazine's all-star research team 14 of the past 17 years He also once ran marketing at Warner-Lambert A big reason he's a bull: He sees juicy earnings growth of 16 percent a year over the next five yean vs 65 percent yearly profit growth for the general market His group 10 names posted 19 percent yearly growth the past five years Another plus says Nordmann: appealing valuations The drug group sells at about 185 times his 1992 earnings estimates a 9 percent discount to the SAP 500's price-earnings multiple of 203 This is their larg Most stores were reporting overall percentage sales gains in the double digits compared with the depressed period a year ago when consumers were preoccupied with the Persian Gulf War est discount in 25 years a closer look at Nordmann's picks pegged as 18 percent yearly profit gainers over the next three to five yean: Bristol-Myers ($80) It sells at a hefty 18 percent discount to the market based on his '92 earnings estimate he feels it's worth a 20 percent to 30 percent premium So he values the stock right now at about $120 Also he says its new cholesterol-reducing drug could see $1 billion in yearly sales by '95 His earnings estimates: $485 a share in '92 $555 in '93 Merck It sells at a 19 percent premium to the market based on his '92 earnings estimate a number Nordmann says he can live with Why? A strong research and development pipeline and no major patent expirations before '97Earnings estimates: $645 a share in '92 $760 in '93 His 12-month price target: $200 Pfizer ($75) It took big writeoffs in '91 but Nordmann sees up to five major product introductions in '92 included: a heart drug an anti-depressant and a drug for septic shock He sees earnings of $325 a share in 92 $385 in 93 12-month price target: $100 Syntex ($494) Nordmann is excited over two new drugs one for strokes and a pain reliever Earnings estimates: $225 a share for the fiscal year ending in July '92 $265 in '93 His 12-month price target: $65 Dorfman writes for Gannett Newa Service Hie column appeare Fridays VALLEY BRIEFCASE Foundation for Retarded electa directors: The Foundation for the Retarded of the Desert has elected the following persons to its board of directors: Robert Ricciardi president Gustavo Gonzalez treasurer Steven Merritt Peter Asten Stanley Gerston and Doug Simmons Other members of the board include Robert Eastman 1st vice president Richard Folkers 2nd vice president Linda Rhodes secretary Robert Langford Paul Murphy A1 Nyman Jan Rasmussen Steve Rivera and Ted White Now cheap gas: Palm Springs Gas and KEZN-FM 1031 are joining forces Saturday to offer unleaded regular gas for $103 a gallon at the self-service island The official grand opening celebration runs from 8-11 am Palm Springs Gas is located at 610 Palm Canyon Drive Palm Springs Staff wire report But the smaller and better number to watch sales at stores open for at least a year or comparable store sales showed strength as well Even stores reporting a drop in sales tended to attribute the decline to one-time events like flooding in California or the waning popularity of certain toy lines The results the second straight monthly sales increase following the bleak Christmas season were encouraging to analysts Store traffic the number of people wandering through the stores was up substantially analysts said premature to extrapolate from two months especially when they're low-volume peanut numbers" said Jeffrey Feiner a retail analyst at Salomon Brothers Inc said it could be the beginning of a general recovery just could be At this point you don't know whether you're coming or AP EXCHANGBfiATES rnmemmt wu1 1 I' imh 11 awwRwmu'wamiiRj lilwi WiiwiiiiHibMimmi nHwiMMiMiiinwn inm nniiMf-Sra'ir iJ Dow averages Opan High Low Close Change Industrial index 326163 328354 322674 3 24150 -2706 Transportation index 144899 145759 142993 143797 -1775 Utilities index 20368 20468 20224 20337 -025 Composite index 118189 118928 116891 117478 -1016 Mind your own business with a call to find out Up-to-the-minute stock High Low Close Cha Induat 48719 48270 48410 -309 Transpt 35566 35026 35138 -419 Utilitiee 13935 13849 13871 -057 Flnancl 3454 3392 3406 -048 500 Stocks 40933 40542 40651 -282 100 Stocks 38242 37898 37975 -188 WONEY3RATESW Stocks Thu Mar 5 1992 Dow Jons Ind Close: 324150 VMat4pjn: 2057 mfflon VoL sit session: 32 miion Prev Last Thr day year Prime rate 650 650 900 Discount rate 350 350 600 Federal funds 412 300 646 NYSE AMEX quotes How your portfolio is faring on Wall Street Top Interest rates on CDs What your monthly payments would be on loans of various amounts and interest rates Just how much that used car is worth 95 cents per minute HIM PTC downs Altai WaahFdlDC GametRar 404 Spot prices per troy ounce 4 16 Gold (NY Comex) $35140 4 34 Silver (NY Comex) $4133 7 96 P'Tinum (NY Merc) ILT6710 A I.