Honolulu Star-Bulletin from Honolulu, Hawaii • 31

Today's market E. Up: 1,065 stocks Dow Jones Mortgage rates Based on 20 percent down, owner-occupied mortgages. Rates and terms vary; check with tenders for details. KJWAB Down: 714 stocks At: 3,203 94 i Volume: 292.100,000 089 500: 418.10 0.70 Section Star-Bulletin Wednesday, January 8, 1992 Terms Interest Points American Savinas 15-year fixed 7 34 2 Savlnfls 1 -year ARM 618 2 Ranknf 30-year fixed 814 2 Hawaii 15-year fixed 734 2 "awa" 1-year ARM 618 2 30-year fixed 814 2 HawaZ 15-yearfixed 734 2 Hawaiian arm 6 78 2 u. 30-year fixed 814 2 nnk 15-yearfixed 734 2 pa 1 -year ARM 614 2 FHAVA 30-year fixed 818 2 Hawaii's building permits These charts show the estimated total value of private building permits on a 1 2-month cumulative basis both statewide and for individual counties.

Statewide figures include Maui county estimates by Bank of Hawaii. County charts reflect the most recent month for which figures are available. 2.4 Mollis soles if onOohu jump Prices increase only slightly By Russ Lynch Stor-Bulletin The Oahu real estate market picked up sharply in 1 December, with sales volume up strongly from the previous month and from a year earlier for both -single-f amily houses and condominium units, accord- ing to the Honolulu Board of Realtors. Prices rose a little, too, but stayed close to the' narrow range experienced through last year, the organization said yesterday. There were 182 sales of existing single-family homes last month, up 28.2 percent from the 142 sales reported for November and up 23.8 percent from 147 sales in December 1 2-month cumulative total value of private building permits billions) Souror Cokfwett Bantw McCorma Real Eetato.

Stm-Bulletin 2.0 1.6 1.2 0.8 0.4 MONEY WATCH By Dan Dorman 0' 1 981 1 982 1 983 1 984 1 985 1 986 1 987 1 988 1 989 1 990 1 991 Maui county In millions of dollars Honolulu county In millions of dollars (cumulative) CP (cumulative) 1500 1300 1100 'Home sales 500" -400 -300 -200 100 900 II Construction in isles takes another drop A slow first six months of 1992 is forecast for the building industry By Rick Daysog Star-Bulletin A key gauge of construction activity in Hawaii took another drop in November, and one isle economist predicts a slow first half this year for the state's building industry. Bank of Hawaii's chief economist, David Ramsour, said the 12-month cumulative total for statewide building contracts likely will settle in the $2 billion range by mid-year, compared to a peak of about $2.5 billion last March. "The private sector is definitely going through a slowing trend," Ramsour said. "And it will continue to slow through the middle of the year." In November, the statewide value of building permits totaled $2.23 billion, down from 3.6 percent from October's $2.32 billion. Each of the state's four counties showed a decline: The annual Oahu total dropped to $1.46 billion in November from $1.49 billion in October.

On a monthly basis, Oahu permits were down 36 percent to $96.2 million from $147.8 million. On Maui, private construction contracts for the past 12 months declined 12 percent to $230.9 million. Big Island permit activity dropped 3.8 percent for the year to $375.2 million, despite a monthly 15 percent gain in November. Kauai permits also registered a slight drop for the year to $169.8 million from $171.3 million in October. Meanwhile, the value of public construction contracts took a spill in November as the annual government total fell to $1.1 billion, down 22.4 percent from $1.4 billion a year before.

However, Ramsour said it's difficult to tell if that signifies a slowdown due the large number of projects budgeted and the wide 700 50ot 0l 182 142 FMAM ASO MAM A SO Home sales December November Condo sales December November 1990 1991 1990 1991 1990. A total of 304 condominium units were sold last month, 21.6 percent more than the 250 sold in November and 18.2 percent above the year-earlier sales of 257. The median price of an existing single-family house sold last month was $333,000, an increase of less than 1 percent from $330,000 in November, but a drop of 14.6 percent from the $390,000 December 1990 median, which means half the properties sold for more than that and half sold for less. The median price of a condominium in December was Kauai county In millions of dollars (cumulative) Hawaii county In millions of dollars (cumulative) 304 250 500-i 500 1 III Ill Home prices December $333,000 November $330,000 Condo prices December $195,000 November $187,500 400 4uu 300 300 1111111 Illinium 0 FMAM JASON 0 DJFMAMJJASON 1990 1 991 1990 1991 Jj MOP tion employment continues to hold at near peak levels, he said. Currently there are about 32,000 workers in the building industry.

That is about the same as last year and 10,000 more than the levels during the mid-1980s, he said. swings in permitting activity that's typical of the sector. "Public construction is still an unknown to us," he said. "The announcement of public projects is not going to be an accurate gauge of public activity." On a more positive note, construe- warns investors: Beware of the dogs! THE thrust of this column as surging numbers of investors race to the stock market: Beware of the dogs! In other words, if you own shares of Hilton Hotels, Grumman Inco Limited, Canadian Pacific, Media General or the Neiman-Marcus Group, the sooner you boot them out of your portfolio the better. Ditto stocks of Altera Diebold, Illinois Tool Works, Hecla Mining, Standard Products, Sysco IBP, Cincinnati Bell and a host of others.

Says who? Says Standard Poor's which just issued its annual list of its worst stocks for the new year. All told, there are 24 companies. The reasons is so negative vary. They range from the ill effects of a sloppy economy and weakening competitive positions to uncomfortably high debt levels, profit margin squeezes and frothy price-earnings multiples. What happens if the economy, as expects, begins to percolate in the second quarter? still would shun these companies.

Why? says even if they benefit from a recovery, the negatives are such that the stocks will still lag the market the next six to 12 months. Here's a brief rundown of some dogs and the bones it has to pick with them: Hilton: Overcapacity is pressuring room rates and will probably restrict a near-term earnings recovery for the hotel giant. Its gaming business is also threatened by growing Las Vegas competition. Grumman: The military aircraft manufacturer could face downward earnings pressure from lack of new contracts and a "winding down" of fighter aircraft programs. Inco: The giant nickel producer is vulnerable to falling prices resulting from heavy Russian selling of the metal.

Sysco: Weakness in the U.S. food service business continues to pressure operating margins for the nation's leading food service distributor. Neiman-Marcus: Sluggish consumer spending is squeezing the upscale retailer. Canadian Pacific: The Canadian shipping and energy conglomerate is richly priced, based on sof oil prices and continued losses in its forest products division. Altera: Sluggish conditions in the semiconductor market could restrain rapid growth of this semiconductor maker.

Diebold: Stock of this leading maker of automated teller systems is fully valued based on softening demand for its bank security and automated transaction systems. Cincinnati Bell: A downturn in its telephone unit's earnings is unlikely to end until a rate hike is granted. Illinois Tool Works: The shares of this industrial component and equipment maker appear overvalued in relation to 1992 earnings estimate. Hecla Mining: Lower gold and silver prices, reflecting disinflation, are likely to lead to another loss in 1992 for this leading U.S. metals producer.

Media General: The shares of the newspaper publisher and television station owner are pricey and face pressure from weakness in newspaper and TV advertising. Standard Products: Shares of this auto parts maker look fully valued on expectations of breakeven earnings for the fiscal year ending June 30. IBP: The nation's No. 1 beef and pork processor is suffering from weak beef demand, tight livestock supplies and significant debt. The 10 other stocks rates as sale candidates: Amdahl, Portland General, Itel, Brush Wellman, Quantum Chemical, Parker-Hannifin, Safety-Kleen, Weyerhaeuser, Convex Computer and Paccar.

So wrapup: You're barking up the wrong tree with these dogs; unleash them now. Dan Dorfman. a veteran of Wall Street, writes a weekly column that appears Wednesday in Hawaii Inc. His assistant, Jerilyn Klein, contributed to this article. LOOKING AHEAD Tomorrow: The Labor Department will report on producer prices for November.

While he declined to disclose the sale price, Jordan said the deal included a substantial downpay-ment and a promissary note to the station's creditors pledging a per Defunct radio station KORL acquired by local investors $195,000, up 4 percent from $187,500 in November and i up 1 percent from $193,000 a year earlier. "The December median sales prices were consistent with the stable trends we've been reporting," said Norman Noguchi, president of the Board of Realtors. "If we examine the monthly 1991 figures, we can see that the single-family home median prices ranged between $315,000 and $355,000, less than a 13 percent spread. "Likewise, condominium prices fluctuated be-' tween $185,000 and $205,000, a spread of less than 11 percent," Noguchi said. He said the market in 1992 is also expected to be stable.

"Prices will most likely remain within the current ranges since there is little pressure for renewal of the price inflation of the few years." Lower interest rates are expected to bring more buyers into the marketplace, he said. Dow edges down 0.89 It has an up-and-down day Reuters NEW YORK The Dow Jones Industrial Average closed slightly lower in heavy trading today after the market shrugged off early worries about the health I of President Bush. The Dow slipped 0.89 point to close at 3,203.94. But advancing stocks led decliners by a 10-7 margin i on heavy volume of approximately 292.1 million shares. The market was down more than 15 points in early trading following news that President Bush had collapsed in Japan.

But the Dow shrugged it off and i was up more than 23 points at noon before falling 1 again. Analysts said once investors realized Bush would recover, they regained confidence in the market. "The market shook off serious concern over Bush's health in Japan and continues its upward move," said Alan Ackerman, market strategist at Reich Co. "Buyers on the sidelines were quick to commit cash on weakness," Ackerman added. "The market doesn't want to quit.

"Money continues to chase equities with a passion, i The market puilbacks are shallow at best," he said, 1,1 1 fey llL centage of KORL's profits. According to Anthony Cas-sara, partner at Coral Communications, the station is planning to hire six or seven employees and is in the process of hiring a station manager. George Ariyoshi The new owners said they will begin airing in late February and will serve as the exclusive radio affiliate locally for CNN headline news. The company also plans to offer extended local news coverage. The radio station, which previously had a contemporary and Hawaiiana music format, began its operations about 45 years ago but was shut down in 1987 when its parent company, Pacific Communications Corp.

of Dallas, filed for bankruptcy with debts of $1.36 million. As part of the bankruptcy settlement, Hawaii Broadcasting received the station's FCC license while O'Day, who owned the station until 1984, recieved KORL's radio equipment, said Michael Jordan, Hawaii Broadcasting's assistant treasurer. Ahui including Ariyoshi buys the station and plans an all-news format By Rick Daysog Star-Bulletin A hui led by former Gov. George Ariyoshi, developer Tom Gentry and KITV news executive Richard Schaller has purchased defunct radio station KORL 650 AM and will begin airing an all-news format at the end of next month. Coral Communications said that it had completed is purchase of the station Dec.

30 from Dallas-based Hawaii Broadcasting Corp. and businessman Michael O'Day. The sale price was not disclosed. Other shareholders of Coral Communication include television producer Rick Takemoto and attorney George Vandeman. "We are delighted to return ownership to Hawaii and we are looking forward to bringing an all news service of the quality of CNN to Hawaii radio listeners," Vandeman said.

NEWSWATCH EXECUTIVE PROFILE" Attorney in a move to I Key rates in percent WW' ii. (WHIM ML: PRIME RATE 6.50 6.50 9.50 DISCOUNT RATE 3.50 3.50 6.50 FEDERAL FUNDS 2.00 3.50 3.00 3-MO. TREAS. BILLS 3.74 3.85 6.43 6- MO. TREAS.

BILLS 378 3.86 6.42 7- YR. TREAS. NOTES 6.39 6.46 8 01 30-YR. TREAS. BONDS 7.39 7.43 8.37 Source: Salomon Brothers and Telerate FARGUS David Waisglass Gordon Coulthart After 14 years at one of the state's largest law firms, Stanley Kuriyama is leaving his legal practice to become a business executive.

Kuriyama, who will become executive vice president at Properties on Jan. 15, said he is making the career shift to expand his horizons. "When the opportunity arose, I thought it was something that was interesting and exciting to be on the other side for a change," he said. But Kuriyama, who will heads Properties's plan Nome: Stanley Kuriyama Age: 38 Position: Executive vice president, Properties Inc. First Job: Working for family restaurant Favorite pastime: Golf, tennis tions are management offices in Honolulu and a time-share resort on Kauai.

Glen Ivy and related entities last week settled civil charges that they misled customers purchasing contracts allowing them to use facilities at Glen Ivy's 24 resorts in eight states. Top executive appointed for operations on Lanai Kurt Schneider, a key hotel management and development executive in David H. Murdock's personal businesses, has been named president and chief operating officer of Lanai Co. and Lanai Resorts. Both are subsidiaries of Castle Cooke Properties which in turn is owned by Dole Food of which Murdock is chairman.

Schneider has been president of Murdock Hotels Corp. and vice president of Murdock Development Corp. for five years. Schneider has moved to Lanai and has overall responsibility for the island, the company said. The two top executives who had run the company's business on the island both resigned recently: George Lidacker, who was head of Lanai Resorts Partners, and James Pierce, who was vice president of Lanai Co.

Thomas Leppert, Honolulu-based president and chief executive of Castle Cooke Properties, said the change puts all Lanai operations under one leader. From staff and wire reports El Paso Electric files for Chapter 11 protection EI Paso Electric Co. sought Chapter 11 protection from its creditors today after months of negotiations and failed efforts to raise rates to pay for its investment in an Arizona nuclear plant. The utility said the action would not affect service to its 248,000 customers in El Paso, West Texas and southern New Mexico. EI Paso Electric has been beset in recent months by investments in the Palo Verde nuclear plant near Phoenix and commercial real estate and thrifts.

It owes about $500 million to various creditors. Intel to slash prices of some microprocessors Intel Corp. plans to slash the price of its most popular microprocessors, launching a price war that an industry analyst said today won't likely prevent Intel from losing business to competition. The price cut of up to 35 percent for Intel's 386 microprocessors, the "brains" of most personal computers, will begin in April, a year after Advanced Micro Devices broke Intel's monopoly with a line of rival microprocessors. Intel said the company is slashing its 386 prices to maintain its market share on those products while at the same time promoting its more powerful next generation 486 microprocessors.

Under the price cut plan, Intel's 386DX-25 chip will sell for $99 instead of $152, and its 386SX will go from $82.50 to $59. Glen Ivy Financial Group lays off half its workers Glen Ivy Financial Group, the giant time-share resort operator under criminal investigation, has laid off nearly half its 1,400 employees and contract sales staff. About 120 of those layoffs were permanent and the rest mostly sales staff were "involuntary unpaid leave," the Los Angeles Times reported today. More than 100 law enforcement officials raided Glen Ivy last month following allegations the company oversold some of its resorts and covered up its wrongdoing through elaborate deceits. The company, based in Corona, has denied wrongdoing.

Among the companies opera ning and regulatory work, is a familiar face at i the Alexander Baldwin Inc. subsidiary. I As partner at the law firm of Cades Scbutte Fleming Wright, he conducted legal work on i various real estate and condominium pro- jects. His other clients include First Hawaiian Bank and Honfed Bank. Prior to joining Cades Schutte, Kuriyama worked as a clerk under Federal District Court Judge Dick Yin Wong.

A 1971 graduate of Punahou School, Kuriyama I I graduated from Harvard Law School in 1977. He 1 i received his bachelors degree in economics from i the University of Hawaii in 1974. Rick Daysog, Star-Bulletin 1992 Firctn Ofloont I hate when they give us junk bonds..