The Daily Journal from Vineland, New Jersey • 23

WEDNESDAY May 29, 1996 BUSINESS ROUNDUP Letters to threaten 'punitive' action WASHINGTON The Clinton administration will send letters advising private companies in Mexico, Canada and Italy they may be subject to punitive action because of investments in Cuba, U.S. officials said. The letters begin implementation of legislation enacted last March designed to punish companies that "traffic" in properties that Cuba confiscated from U.S. citizens or corporations. Officials who asked not to be identified said Tuesday the letters will be sent to Grupo Domos, a Mexican telephone firm; Stet, an Italian telephone company; and Sherritt International a Canadian company that mines nickel and cobalt in eastern Cuba.

Stocks take slide NEW YORK Stocks slid sharply Tuesday as interest rates rose on some strong economic readings that renewed inflation worries and provided an excuse to take profits. The Dow Jones industrial average fell 53.19 to close at 5,709.67 after briefly dipping below 5,700. The barometer of 30 big U.S. companies, which celebrated its 100th anniversary over the weekend, continued to stumble after setting two new records last week. Declining issues outnumbered advancers by nearly 2 to 01 on the New York Stock Exchange, where volume totaled just 338.25 million shares as of 4 p.m., well below Friday's pace.

From Daily Journal wire services Stocks of local interest Stock name Close Change 63 American 46 3 Atlantic Electric 17 Century Telephone 32 Collective Federal 24 Core States Bank 39 Dean Witter 60 Gannett 68 Covenant Bank 13 IGI 8 mart 11 Owens-Illinois 16 Kimberly 74 Sears, Roebuck 50 South Jersey Industries 22 United Jersey Bank 36 U.S. Cellular 32 Wal Mart 25 Dow Jones 5709.67 Closing Date: Local stock listings: Courtesy of Jerry Brown of Dean Witter Reynolds, Vineland Consumer confidence retreats By The Associated Press NEW YORK Consumer confidence in the economy weakened in May, hurt by lowered expectations about business conditions, job prospects and income levels, a widely followed survey showed. The report on consumer attitudes in May marked the first drop in confidence this year and came against a backdrop of mixed signals on the economy's underlying health. It was compiled by the Conference Board, a business research group. BUSINESS Wednesday, PAGE May D1 1996: Consumer confidence From a monthly survey of 5,000 U.S.

households. Index 1985 100 110 100 90 80 70 102 101.2 0 MJJASONDJ MAM 1995 1996 Source: The Conference Board AP 'Baby Superstore' suffering growing pains Gannett News Service Expansion costs conPERSONAL FINANCE tinue to plague Baby Superstore, a former Wall Street high-flyer that's suffering growing pains in the increasingly competitive baby goods market. Tuesday, Baby Superstore shares tumbled 10.625 to $24.50, a 30 percent drop, after the company posted first-quarter earnings. Despite a revenue gain of nearly 60 percent over the year-ago quarter, Baby Superstore said earnings were flat at $3.2 million, or 17 cents a share. That was four cents a share below Wall Street expectations.

Baby Superstore was a rising star after it launched an initial public offering at $18 a share in September 1994. The concept of a superstore devoted entirely to infant goods, from clothing to food to nursery furniture inspired investors. Shares more than tripled from the IPO price of $18, hitting a high of $58 last December. The chain has expanded to 65 stores in 18 states. But while retailers are back in vogue on Wall Street this year, investors have soured on Baby Superstore.

The cost of hiring new managers has hampered earnings, says CEO Jack Tate. Moreover, shoppers have focused on low-margin items, such as baby food and diapers, making it harder for the chain to make a profit, he says. Tuesday's stock slide marked the second major stock drop for Baby Superstore in '96. The stock sank 12 percent March 1 after the company posted lower than -expected fourth quarter earnings and restated its thirdquarter results due to an accounting error. Competition is heating up, too.

Toys opened its first Babies Us on Long Island, with plans for more superstores in up to 10 major cities before year's end. Buy Buy Baby, a superstore run by former executives of Bed Bath and Beyond, opened its first store in suburban Washington, D.C., last week. For a limited time, when you run a 3 day merchandise classified ad in The Daily get A sweet deal! Pie Key or featured Lime any dessert FREE DESSERT AT RED LOBSTER. ANY DESSERT! VALUE $4 3 LINES 3 DAYS 3 DOLLARS CALL US OR USE THIS COUPON I want to make a great deal! Merchandise Priced Yes! 3 Lines 3 Days $3.00 Up to $500 Mail me my Red Lobster coupon and (Additional lines: $1.009 each) place my Classified ad. 3 Lines 7 Days $7.00 Over $5.00 (Coupon mailed when payment received.) (Additional lines: $3.00 each) Name Four words per line including punctuation and space between words.

Items for sale listed first, spelled out Address and price must appear in ad. Please print clearly. 1. Zip Phone 0 Bill me 2. Check payable to The Daily Journal enclosed 3.

0 Charge my: VISA Master Card 4. Card 5. Expiration Date MAIL TO: RED LOBSTER CLASSIFIED PROMOTION Signature The Daily Journal, 891 E. Oak Vineland, NJ 08360 Non-commercial ads. For private use only.

Sorry, no pets, real estate or firewood. HURRY OFFER EXPIRES CUMBERLAND MALL JUNE 30, 1996 LOCATION ONLY through July 31) S. DELSEA DRIVE (Coupons valid Red Lobster The Daily Journal VISA Master Card Monday CLASSIFIED Friday 8:30 AM 5 PM 691-7770 THE DAILY JOURNAL Report: Health insurers to merge By The Associated Press The deal would be the latest in a series of mergers and alliances involving Blue TRENTON Blue Cross-Blue Shield of Cross and Blue Shield plans nationwide. New Jersey will merge with one of the The New Jersey and Delaware Blue nation's largest health insurers, the New Cross-Blue Shield organizations just last York Times reports in Wednesday's edi- week announced a regional alliance to tions. offer managed care and traditional health New Jersey's largest health insurer, coverage in their states and southeastern with 1.9 million enrollees, has agreed to Pennsylvania.

join with the Anthem Group, an In- That deal, expected to be finalized by dianapolis-based company that owns late August, will create a $3 billion Blue Cross plans in Indiana, Ohio and company with slightly more than 2 million Kentucky, the newspaper reported. members, said William J. Marino, presiNew Jersey Blues' spokesman Fred dent and chief executive officer of the Hillmann did not immediately return a New Jersey Blues. telephone message from The Associated Consolidations have reduced the numPress requesting comment late Tuesday ber of Blues plans from about 100 a night. The company had scheduled an decade ago to 63 today, Marino said.

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