The Sacramento Bee from Sacramento, California • 47

The Sacramento Bee Friday September 23 1983 C11 Commodity Markets fitnrkQ Vs Finriinn THp WinnorQ wear wmt '0 ear a wa 0 a a a a a am a a a a a a 0 Of a a a a a 0 a 0 Only A Handful Can Match The 1 3 Percent Total Return Of Their Competitors MAJOR COMPANIES THAT PASS MUSTER Scott Burns Board Of Trade CHICAGO (AP) Futures trading on the Chicago Board of Trade Thursday L0W Ch WHEAT 5000 bu minimum dollars per bushel Sep 375' 375' 375'2 375' 00V Dec 387 387 381 381' -08 Mar 403 4 03 3971 397 Meu 4 Oft 4 AO a nni 4 msj aai may tw UO Jl 2 ftUZ4 VYJ4 Jul 4 00' 400'! 394V 394V Dec 418 418 415' 416V Prev sales 21251 Prev day's open int 67850 up 2188 CORN 5000 bu minimum dollars per bushel Sep 343 3 49 343 343'! -08 'A Dec 364'i 367 359V 360' Mar 369 376 3 67 3 68 May 3 73 378V 371V 371' Jul 375 376V 369 369 Dec 320 326 318 321 -05'i Prev sales 34645 Prev day's open int 228378 up 3956 OATS 5000 bu minimum dollars per bushel Dec 1 97 198V 195 195 Mar 207V 210V 206 207 05'2 May 215V 216'! 213 214V -05 V2 Jul 217 220 215V 217V -07V Prev sales 4083 Prev day's open int 9801 up 864 SOYBEANS 5000 bu minimum dollars per bushel Mercantile Exchange CHICAGO (AP) Futures trading on the Chicago Mercantile Exchange Thursday: Open High Low Setlle Chi CATTLE 40000 lbs cents per lb Oct 5970 6070 5970 6060 110 Dec 5980 6117 59 80 6110 135 Feb 6140 6195 6120 6185 85 Apr 63 40 6400 6330 6390 58 Jun 6520 6570 6505 6565 50 Aug 64 40 64 80 6435 6470 45 Est sales 25852 Prev sales 21330 Prev day's open int 55732 up 2365 FEEDER CATTLE 44000 lbs cents per lb Oct 5850 59 35 5825 5935 150 Nov 5955 60 80 5950 6080 150 Jan 6310 64 25 6310 6425 135 Mar 6450 6550 6450 6537 112 Apr 6475 6550 6470 6550 95 May 6440 6520 6440 6520 103 Est sales 2252 Prev sales 2983 Prev day's open int 11619 up 325 HOGS 30000 lbs cents per lb Oct 4180 4215 4150 4167 02 Dec 4185 4227 4152 4200 23 Feb 4535 4595 4495 4585 53 Apr 4607 46 80 4580 46 60 53 Jun 5190 5235 5175 5230 43 Jul 5375 5432 5360 5405 35 Aug 5390 5420 5350 5355 10 Dec 5410 5410 5360 5320 -35 Prev sales 12698 Prev day's open int 34793 up 645 STOCKS GO DOWN as well as up Thousands of investors many of them new to the stock market have learned that painful lesson as stock prices in smaller growth companies have plummeted Some examples? How about Altos Computer which peaked at $28 but recently was selling at $15 Or Apple with a high of $63 and a recent price of $32 Or Eagle Computer which peaked at $24 and now sells at $12 Or Excalibur Technology now $7 down from $16 The number of high-tech companies that have lost half their market value in recent weeks is legion Is there an alternative for investors who like to sleep and are content with the idea of getting rich slowly? Yes You can use one of the better decision tools and you can concentrate on larger companies the idea: One of the nicest valuation tools I know is used regularly by Goldman Sachs a major New York investment-banking firm They make the assumption that all investments compete for an money They use the return on high-quality longterm bonds as a to determine whether a company is appropriately priced They reason that an investor in a common stock will want a return that is equal to the return on secure bonds plus a for the uncertainty of common stocks The complication comes when you try to figure out what the return on a common stock is While a bond makes regular fixed payments of cash a holder of common stock sees his return in two ways First he gets a dividend Second the company retains some of the money earned and reinvests it The growth in the book value eventually may be seen in the value of the shares Some companies retain all earnings some retain almost none In any case the return is equal to the annual growth in the book value of the company plus the current dividend yield WITH LONG-TERM bonds now yielding 13 percent this means stocks would have to be priced so that the growth in book value and dividend yield would be at least 13 percent How much higher the required return is depends on the "risk for common stocks In my opinion the risk premium should be small Not because stocks entail such low risks but because the ups and downs of interest rates have made bonds as risk-ridden as stocks Now the surprise Very few stocks offer a total return in excess of 13 percent! In a recent computer study of the stocks that comprise the Standard and 100 index for instance I found that only 57 companies offered a total return greater than 9 percent the current return on riskless money-market funds And only 28 companies offered a total return greater than 13 percent The list below shows the companies that offer total returns over 13 percent listed in rank order of their dividend yield 60000 lbs dollars per 100 lbs Prev day's open int 15470 up 1638 Source: Media General Source Telecomputing Since above-average performers like this typically sell at price-earnings multiples of at least 14 and most often 20 this list may be a good starting place for the investments that should form the core of any investment program (For a collection of Scott Burns' columns about discount dividend reinvestment plans send $1 and a long stamped self-addressed envelope with your request to Dividend Reinvestment Scott Burns Column The Bee Box 15779 Sacramento Calif 95852) Questions about personal finance and investments may be sent to Scott Burns at the above address 1 0 1983 Register-Tribune Syndicate Chg Open High Low Settle LUMBER 130000 bd ft per 1000 bd ft Nov 17200 17480 17050 17480 Jan 18520 18920 18380 18920 Mar 19630 19980 19530 19960 May 20600 208 50 20490 20620 Jul 21610 21850 21550 21660 Sep 22250 22250 22200 22290 Est sales 4138 Prev sales 3393 Prev day's open int 9008 up 106 500 500 430 200 60 50 Judge: Insurer Not Exempt On Ruined Beirut Hotel Prev sales 12639 Prev day's open int 43223 off 569 stemmed from fighting in a Lebanese civil war The American Foreign Insurance Association made up of five insurance firms underwrote the hotel policy for Aetna But the association reinsured most of the liability to cut its risk spreading it among 50 to 60 companies in the worldwide insurance market That leaves the five companies liable for only $100000 they say The insurers say Judge Charles Haight ruling at US District Court in Manhattan the first AP Hartford Courant NEW YORK In a semantic hairsplitting decision that could spell bad news for the insurance industry a federal judge has ruled that a hotel torn apart in fighting in Lebanon was damaged in a not a "civil For the Aetna Insurance Co insurer of the damaged Holiday Inn the ruling means it cannot avoid paying the $11 million claim by arguing that the destruction Prev sales 11432 'Prev day's open int 75582 up 1251 SOYBEAN MEAL 100 tons dollars per ton Sep 24000 24500 23300 23650 -300 Oct 2480C 24800 23700 23720 -710 Dec 25250 25250 24100 24150 -720 Jan 25400 25400 24300 24300 -750 Mar 25600 25650 24600 24650 -720 May 25750 25750 24700 24750 Jul 25900 25900 24730 24740 -890 Aug 24900 25000 238 00 24000 Oct 21750 22100 21000 21200 -770 Dec 21850 22000 20900 21220 Prev sales 8116 Prev open int 66276 up 1 Open High Low Setlle Chg WSTN PLYWOOD 76032 sq ft per 1000 sq ft Nov 18600 18950 16520 18940 190 Jan 18950 19250 18820 19240 190 Mar 19380 19670 19240 19670 120 May 19700 20050 19600 19970 170 Jul 20000 20270 19900 20270 -220 Prev sales 241 Prev day's open int 1094 up 60 SILVER! 1000) 1000 oz cents per oz Sep 11650 11850 11650 11840 Oct 11800 11960 11650 11870 Nov 11970 Dec 12040 12170 11870 12070 Feb 12230 12450 12050 12290 Apr 12480 12650 12300 12510 Jun 12750 12850 12500 12730 Aug 12850 13050 12800 12950 Oct 13150 13200 13000 13170 Dec 13400 13450 13250 13390 Prev sales 6386 Prev day's open int 38929 up 28 SILVER 5000 troy oz cents per troy oz Oct 11700 11900 117 0 11870 Prev sales 17 Prev day's open int 100 off 6 10 YR TREASURY $100000 prin pts 32nds of 100 pet Foreign Exchange NEW YORK (AP) Foreign Exchange New York prices Fgn currency Dollar in in dollars fgn currency Thu Wed Thu Wed f-Argent 0820 0820 121930 121930 Australia 8932 8919 11196 11212 Austria 0533 0534 1875 1874 c-Belgium 0185 0186 5398 5382 f-Belgium 0183 0183 5455 5471 f-Bolivia 0051 0051 19800 19800 Britain 15005 15015 6664 6660 30-day fut 15007 15017 6663 6659 60-day fut 15012 15021 6661 6657 90-dav fut 15017 15036 6659 6651 8109 8116 12332 12322 Canada Tho MoqIotvi fortinne mnH iuv iuUDiviti tuvuviM uviv invw vated against the (Christian) Phalange by religious differences economic inequities and political the udge wrote i But he said there was no evidence the Moslem groups were trying to overthrow the government of Lebanon as in a civil war or insurrection He said that although journalists and politicians refer to the Lebanese conflict as a the legal meaning of the words has a different interpretation Haight cited testimony by the former ambassador to Lebanon who said the fighters ranged from military groups to There were many factions that we could not The judge said that although Lebanon close to at the time its government continued to exist amid the The policy covers civil commotion Bowdre Mays the insurance vice president of international affairs said the ruling was a shock We assumed the damages would be excluded under the war clause remember visiting Beirut in 1977 and going up to that Holiday Mays added had been several attacks on the hotel and it had been torn apart There was an enormous tank in the lobby That sounds like war to uvvioivu vii muu wiivv viuinw uivui ming from the conflict in Lebanon could pose problems for insurers said Holiday attorney Richard Walker Gloria McNutt a spokeswoman for the Aetna company said an appeal is being considered The opinion signed by the judge Monday was filed in court late Wednesday The innkeeper is requesting $11 million to cover damage inflicted on the hotel in 1975 and 1976 Aetna a subsidiary of Cigna Corp and unrelated to the larger Aetna Life Casualty Co had argued it was not liable for the claim because the damage fell under policy exclusions for war insurrection or civil war The 107-page opinion gave a detailed analysis of the conflict between Christians and Moslems in Lebanon dating to before World War I During a trial last year he heard testimony on Lebanon from a series of experts including George Godley a former US ambassador to Lebanon He described how the 400-room 26-floor hotel opened in 1974 complete with a revolving rooftop restaurant and a nightclub and was turned into a two years later after Moslem forces stormed and took it from Christians in fierce fighting Durable Goods Reverse Previous Decline percent But analysts said it represents a solid bounce that shows softening was an exception to a continuing recovery rather than the start of a new trend "Orders have risen in eight of the last 20 months and now stand 25 percent above their October 1982 said a statement from Commerce Secretary Malcolm Bal-drige Crediting orders for autos primary metals and non-defense capital goods Baldrige said that manufacturing has shown impressive growth since the low point late last He warned that the strong improvements this year may not last is typical when a recovery matures the upward pace in ordering may moderate in the months WASHINGTON (UPI) Orders for factory goods climbed 3 percent overall in August despite a big drop in defense orders the Commerce Department said Thursday It was a big improvement from 29 percent decline The value of new orders for durable goods which will keep factories busy in the weeks ahead was $885 billion last month the second-highest on record and near record $909 billion In addition August orders overall would have been up 35 percent if not for a 37 percent decline in defense orders a category that is largely independent of the business cycle That still would have been less than half of the enormous acceleration of durables orders in June revised to show 76 percent growth instead of the originally reported 55 US TREASURY BONDS (8 pct-1100 000pts 32nds of 100 pet) 30-day ft 90-dav ft FREE SEMINAR ON REAL ESTATE INVESTMENTS NEW HOUSES DUPLEXES AND HALF-PLEXES GOOD LEVERAGE AVAILABLE (LOW DOWN!) FULLY MANAGED-NO LANDLORD HEADACHES ATTRACTIVE FINANCING EXCELLENT TAX SHELTER BENEFITS SATURDAY MORNING 10 AM SEPT 24 HOLIDAY INN SOUTH 4390 47TH AVE AT HWY 99 SACRAMENTO BRAND BROKERS (415) 945-0210 Prev sales 99159 Prev day's open int 150763 up 1814 30-day fut 60-dav fut 90-dav fut y-Chile z-Chile Colombia Denmark y-Egypt f-Ecuador Finland France Greece Holland Hong Kong y-lndia Indonesia Iran Ireland Israel Italy Japan 004144004131 24134 24207 004155004149 24070 24103 004166004165 24011 24008 27122 27064 37870 36950 34323 34335 29135 29125 2004 2049 49900 48800 006700006700 14950 14950 6547 6550 15274 15267 1344 1349 74390 74120 0755 0755 1325 1325 000500000500 199850 199850 0909 0909 110020 110020 0081 0081 12350 12405 2874 2874 34797 34792 4671 4674 21410 21395 9030 9043 11074 11058 006600006600 15215 15140 1267 1268 78930 78850 4626 4622 21615 21635 4646 4644 21522 21533 4668 4664 21423 21441 4687 4683 21334 21354 004131004131 24205 24205 0279 0279 3590 3590 0800 0769 125000 130000 3742 3745 26725 26700 3754 3758 26635 26610 3767 3770 26543 26525 3780 3783 26455 26434 Late prices at New York San Francisco banks gathered by Bank America New York c-commercial rale f-financial rate y-official rate z-floating rate Cash Grain SPRINGFIELD III (AP) USDA to arrive truck and rail bids for grain delivered to Chicago Quotations represent bids from terminal elevators processors mills and merchandisers after 1:30 Pm Central time Thu Wed No 2 Soft wheat 356' 365V No 1 Yellow soybeans 905 911 No 2 Yellow Corn 355'p 363' No 2 Yellow Corn 345'e 354V p-processor bids e-terminal elevator bids DISCOUNT COMPUTERS us a chance to beat your best pnee 961-2896 LANDMARK SPECIALTIES INC Going Western At Tahoe Philippines Portugal Saudi Arab Singapore So Africa Spain Sweden Switzerland 30-day fut 60-dav fut 90-day fut Turkey z-Uruguay z-Venzuel Grmnv 30-day fut 60-day fut 90-dav fut STOCKTON GRAIN: STOCKTON (AP) Cash grain prices Wednesday: Barley No 2 Western 46 lbs $695-705 Grain sorghum No 2 yellow by rail from Kansas and Nebraska $708-713 Corn No 2 yellow by rail from out of state $771-776 Wheat No 2 hard red winter $675-680 33S0QBP) Greenhaven LAKE FRONT OFFICE Space for lease exterior maintenance and utilities provided 2 Suites 264 sq ft and 850 sq ft For further information call 422-3512 Dividends BEST BIK'DAIDWAY A STATELINE Nev (AP) The Sahara Tahoe is getting a new name and a new image The Del Webb Corp is renaming its resort the High Sierra hotel-casino and will spend millions of dollars remodeling it with a Western theme Western simply means we are aiming our resources to tap the hundreds of thousands of people who prefer a more relaxed informal down-home atmosphere when they visit a said General Manager Lynn Simons The High Sierra is scheduled for a grand opening Dec 26 with wooden floors remodeled restaurants Western decor on the outside and a new logo It will feature country and Western entertainment on weekends Del Webb has operated the resort on the south shore of Lake Tahoe for 18 years It has come under increasing competitive pressure from the new Caesars Tahoe and the expansion of and FEES FOR ALL (except corporate) SACRAMENTO HANDBALL RACQUETBALL CLUB Full line NAUTILUS CENTER Aerobic exercise room 10 Courts Saunas co-ed spa Fitness programs: Aerobic dance classes Self defense Racquetball clinics Masseuse 441-2977 14th Streets (Downtown next to Music Circus) In Sacramento OFF PROCESSING NEW MEMBERSHIPS SACRAMENTO COURT CLUB Full line NAUTILUS CENTER SWIMMING POOL Extensive weight room 8 Courts Saunas co-ed spa Fitness programs: Aerobic dance classes Racquetball clinics Wally ball Court basketball 920-1933 947 Enterprise Dr (Near Northrup Howe) Join The Best THURSDAY DIVIDENDS DECLARED Per- stkof Pay-iod rate record able IRREGULAR Hitachi ADR 9-29 x-approx 141 net per American share less 15 pc Japanese tax Mass CapDev 1 Mass FinDev I Mass InvTr Mesa RovalTr NthwstCntP dipf STOCK Aristek Commun Durp-Tesl Cp Esquire Inc x-2 for 1 split Freeport McMor x-1 share of Freeport McMoran Oils Gas Royalty Trust for each 5 shares of Freeport McMoran Inc held Systematic Inc 10-3 x-2 for 1 split INCREASED ConAgra Inc 285- 10-28 I Esquire Inc 16 10-14 FstBncshrCp SC 42 I INITIAL iTransco Explor 50 I REGULAR I Aristek Com 1 Boston Ed Capital Cities Charles River Colonial Bncp Duro-Test Cp Federated Dept House Fabrics Mnfcturs Hanovr Mass Incodev NielsenAC Cp Savannah El 1 iTransCda Pipe i MJST Corp 10-21 12-1 10-31 11-1 9-30 11-15 Metals Market NEW YORK (AP) Spot non-ferrous metal prices Thursday: Copper 74M-77 cents a pound US destinations Copper 7030 cents per pound New York Comexspot month closed Thursday Lead 22-23 cents a pound Zinc 46 cents a pound delivered Tin $64457 Metals Week composite pound Aluminum 76-81 cents a pound New York Gold $40775 per troy ounce Handy Harman (only dally quote) Gold $41230 per troy ounce New York Comex spot month closed Thursday Silver -r $11680 per troy ounce Handy Harman (only daily quote) Silver $1 1861 per troy ounce New York Comex spot month closed Thursday Mercury per 76-lb flask New York Platinum domestic merchant troy ounce Nejjr York Sept 21 -24 Continues through Saturday Evening Perlormincut 800 Metinen Perlorminci 330 Sept IBth A 24th HIRAM JOHNSON AUDITORIUM 65th St and 14th Ave Tickets available at all Sacramento Savings Loan offices Also available at the door 1 Sponsored by The Sacramento Bee lor the Children ol Stanford Home SPARE TOME INC A CAMRAY COMPANY Our Clubs Otter You A TOTAL FITNESS EXPERIENCE! CALL NOW! OFFER EXPIRES SEPTEMBER 30 1983 Jg-Pable In Canadian Fiends.