The Fresno Bee from Fresno, California • B6

MONDAY B6 THE FRESNO BEE THE FRESNO BEE SOUTH 6 Printed 18:38 Logical Page is THE FRESNO ping for Tyco when it was being shunned by the rest of the mar- ket. Bill Miller, manager of the high- ly regarded Legg Mason Value Trust, liked it so much it has be- come his third-largest holding. Other funds that take this sort of approach include Clipper, Longleaf Partners and Third Ave- nue Value. Deep value investing can bring great rewards, but it also can pose greater-than-average risks. For a more aggressive investor with a growth-intensive portfolio, a fund with a deep value bent can be a stabilizing influence.

But a more conservative inves- tor want to make it a core holding. going to buy one of these funds, understand that there is an opportunity for short- term Kapoor said. assume just because a value fund Potential buying opportunities come with varying degrees of risk as well, said John Buckingham, manager of the small-cap Al Frank fund. An opportunity can be a major event in a history, such as Martha conviction for lying to prosecutors about a stock trade, or something less dra- matic, like an earnings report that missed Wall estimates or the unexpected resignation of a se- nior executive. The important thing from an in- vesting standpoint is the degree of damage and whether it pushes the price of a desirable stock to an appealing level.

In the case of Martha Stewart Omnimedia, the domestic goods empire that Stewart built from scratch, there is little to draw value managers. Most say the stock is still too expensive at $10 per share, and not clear whether the compa- ny can successfully distance itself from its convicted founder. Buckingham said he consider buying Omnimedia until it falls to the $6 range. Waiting for a stock to get to a fair value, holding it through diffi- cult times, then waiting for it to rise before pocketing the gains takes some patience, Buckingham said. a thing most in- vestors Most value investors in- tentionally seek out troubled stocks; they look for good invest- ments that are selling for less than worth.

What makes deep value inves- tors different is that less likely to turn away when a scan- dal is driving the discount. how King, who invests only in large, established compa- nies, wound up with stocks like home lenders Fannie Mae and Freddie Mac, which are facing scrutiny over their accounting practices; drugstore chain Rite Aid, which was accused of misrep- resenting its financial results; and Xerox which struggled through a downturn and now has better prospects. All of these companies are gen- erally industry leaders, with signif- icant revenues, many employees and a number of constituencies de- pending on their survival. That makes them less vulnera- ble to short-term problems and more likely to be successful over time. long-term view and invest- ment discipline is much more im- portant than being a genius when it comes to this kind of King said.

best ideas, in retro- spect, always look so simple. They come from complex, precise predictions about the Continued from Page B5 A I YOUR LOCAL WEB GUIDE FOR CENTRAL VALLEY BUSINESSES To list your business web site in Valley Net Directory call (559) 441-6145 today. AUTOMOTIVE FUNDRAISING REAL ESTATE London Properties www.londonproperties.com Freedom Ford Truck Center www.freedomfresnotrucks.com Fresno Bee www.cars.com/fresnobee Fresno Chrysler Jeep www.fresnochrysler.com Fresno Isuzu www.fresnoisuzu.com Honda North www.hondanorthdirect.com Jim Manning Dodge-Chrysler-Jeep www.jimmanningdodge.com APARTMENTS Fresno Bee www.apartments.com/fresnobee Tillandsia International www.airplantfundraiser.com AUTOMOTIVE Selma Auto Mall Liberty Chevrolet Selma Honda Selma Hyundai Selma Kia Selma Mazda Selma Mitsubishi Selma Nissan Selma Suzuki www.autobuypower.com Surroz Dodge-Chrysler Jeep-BMW www.surroz.com Guarantee Real Estate www.guarantee.com A 10 60 30 30 4 Fresno Bee www.fresnobee.homehunter.com REAL ESTATE RESTAURANT Santa Fe Basque www.santafebasque.com Sherwood Inn Restaurant www.sherwoodinnrestaurant.com WEB DESIGN TaDom Studios www.tadoms.com NEWS Fresno Bee www.fresnobee.com INSURANCE Thom Co Insurance Associates, Inc. www.thomcoinsurance.com Best Tours 237-9410 2609 McKinley 93703 Reno turn $30 Reno Silver Legacy J. Paul Getty Museum $55 Morro Bay $30 Hearst Castle Reno Silver Legacy $59 Laughlin Flamingo 28,29,30....

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Tuttle and Tuttle CPAs 559-291-5527 BY MICHAEL P. REGAN A I A NEW YORK A tail wind of improving economic conditions blew many major companies to record revenues in 2003, but none was able to knock Wal-Mart Stores Inc. off the top of the For- tune 500 list. With sales of almost $259 bil- lion more than a quarter of a trillion dollars the late Sam global chain of general stores topped the list of the na- largest publicly traded com- panies for the third straight year. There was some predictable shuffling among the rest of the top 10.

annual ranking, to be published in the April 5 edition, is based on the sales figures as re- ported in financial statements for 2003. Jittery geopolitics kept the price of oil high, helping Exxon Mobil Corp. to post $213 billion in revenue. The jump leap- frogged the oil company past General Motors Corp. into the No.

2 spot. In terms of profits, Exxon Mobil was first with $21.5 billion in earnings. Wal-Mart, which has the lower profit margins of the retailing industry, had $9.05 bil- lion in earnings. Car makers GM and Ford Motor Co. came in third and fourth respectively, with reve- nues of $196 billion and $164 bil- lion.

General Electric the provid- er of everything from jet engines to sitcoms, remained at No. 5 with revenue of $134 billion. Both Ford and GE held their spots from 2002. ChevronTexaco Corp. moved up a spot to No.

6, while another refiner, ConocoPhillips, jumped five spots to No. 7. Banking powerhouse Citi- group Inc. was eighth, followed by International Business Ma- chines Corp. and insurer Ameri- can International Group Inc.

As a group, the 500 companies bounced back from two years of profit declines, posting com- bined earnings of almost $446 bil- lion on sales totaling $7.5 trillion. the accomplishment even sweeter was the fact that few observers had expected wrote Janice Revell. Profits grew in 34 of the 39 in- dustries that Fortune tracks. And only 37 of the 500 companies dis- appointed shareholders with neg- ative returns, which the maga- zine calculated by adding the change in a stock price to its dividend income. Fortune credited low interest rates, fewer accounting scandals, tax cuts and increased govern- ment spending as helping power the blue-chip boom.

And al- though the war in Iraq kept oil prices high all year, the quick end to major fighting gave companies confidence, according to Fortune. Among the 11 debutantes on the list, the most notable new- comer was Medco Health Solu- tions, a prescription benefits manager that was spun off from drug giant Merck Co. Inc. last year. With revenue of $34 billion, it premiered at No.

41, but its ini- tial public offering helped bump its former parent Merck to the 83rd spot from 17th last year. The magazine noted that big pharmaceutical companies as a whole took a beating in 2003 due to expiring patents, competition from generic drugs and a back- lash against expensive medicine. Schering-Plough for ex- ample, dropped to 247th on the list from 187th as revenue fell from $10.2 billion to $8.3 billion. On the upside, the Federal Re- serve decision to keep in- terest rates low boosted home builders. Centex Lennar Corp.

and D.R. Horton Inc. all moved up considerably in the rankings. Conspicuously absent was mortgage giant Freddie Mac, No. 32 on the 2002 list.

be- cause its most recent financial statements were unavailable due to an accounting scandal. One impressive jump was made by investor Warren Buf- Berkshire Hathaway Inc. The rallying stock market helped the Omaha, holding company jump from 28th place to 14th with revenue of $64 bil- lion. This year marks the 50th time that Fortune has published its an- nual rankings. A look at the origi- nal 500 reveals some familiar names in 1955, General Mo- tors was No.

1, General Electric No. 4, Chrysler No. 6 and Du Pont No. 10. The No.

2 company was Stan- dard Oil Co. of New Jersey. And another piece of John D. Rock- former empire, Standard Oil Co. of New York, or Socony, was No.

9. These two were prede- cessors of Exxon-Mobil, No. 2. Others were muscled out as dominance in the U.S. economy dwindled.

Unit- ed States Steel which was No. 3 in 1955, is now 209th. Fortunate One Wal-Mart tops U.S. sales rankings for third year in a row. DeKarr has lured back some cus- tomers by nearly doubling the size of his store to 9,000 square feet.

And like other independent op- erators, stressing personal- ized service, repairs and classes in his effort to compete. sales people have the same amount of training; they have the same amount of product DeKarr said of Guitar Center. At times, DeKarr and other small retailers have had no choice but to lower prices to match Gui- tar Center. Sometimes, however, Guitar price on an instrument will appear lower because the sale include a case. take the case out of the mix, then they reduce the DeKarr said.

order to survive, you have to be aware of those kinds of Guitar Center is rapidly expand- ing, opening new stores in Man- hattan and Nashville in late 2003, In all, the chain added 14 stores last year. At least four more will open from Florida to Wisconsin in the first quarter of this year. are walking into the stores in their 50s buying Mar- tin guitars and wanting to get into garage said Larry Thomas, co-chief executive of Guitar Cen- ter. The American Music Group, which sells instruments and equipment to school bands, has not fared as well, posting a $1 mil- lion operating loss in the fourth quarter. AMG business model is tak- ing longer to develop than the company had ana- lyst Nelson wrote in a recent re- port.

A plan to build more AMG stores was put on hold as the 19 outlets posted net sales of $38.2 million in 2003, an increase of 17.5 from the same period of 2002. just want to make sure we have it down before we start roll- ing it Thomas said. The success of such stores often hinges on appealing to band in- structors and parents. Competitors say an area where Guitar big-store model work. just open up down the street and say I am, come and get said Johnny Th- ompson, owner of Thompson Music in Monterey Park.

have long-term relationships with teachers, and we give them every bit as good a price as they get ev- Continued from Page B5 headed the Economic Development Corp. serving Fresno County until 2001. Machado owns of eWorldAg and served as president until Feb. 23, when the decision was made to file for bankruptcy protection, according to court documents. Mike Munoz, a local businessman, owns of the stock.

The company helps growers file pesticide-use reports required by the government, among other services. Retire in Clovis The University of California has sold 4.5 acres it owns in Clovis to a group that plans a three-story, 118-unit retirement complex for active seniors. The land is on the west side of Fowler Avenue, just south of Shaw Avenue. The property is part of a 9-acre parcel donated to the university in 1995 by the Jen Chen Buddhism World Center, said Brandi Ramos-Nikido, a UC spokeswoman. The buyer is Clovis Retirement Residence Limited Partnership.

The remaining 4.5 acres still are for sale, Ramos-Nikido said. New news The San Joaquin Spanish-lan- guage media market continues to grow. Univision station, KFTV Channel 21, recently launched the first Spanish-language week- end newscast. airs at 6 p.m. and 11 p.m.

Saturdays and Sundays. The station now provides news seven days a week and reaches viewers from Merced to Bakersfield. As part of its expanded coverage, Univision hired 11 additional people, including producers, reporters and photographers. A veteran anchor team is launching the weekend newscasts: David Ibarra on Saturday evenings and Sayra Vazquez on Sunday evenings. New anchors will be added to the team in coming weeks.

decision highlights the commit- ment that Univision has to the Valley and its Spanish-speaking said news director Samuel Belilty. expansion will allow to provide local news 365 days a Bulldogs win California State University, Fresno, students are earning a reputation for producing award-winning sausage. Three animal science students Randy Long, John Amparan and Tiffany Labuga took top honors at the California Association of Meat Proces- sors student competition held earlier this month in Fremont. spicy Italian sausage was named grand champion; smoked lamb sausage earned reserved grand champion; and crazy Cajun sausage was named champion. John Mitts received an honorable mention for his apple maple breakfast sausage.

The students beat more than 15 other participants from California State University schools including Chico, Cal Poly, San Luis Obispo and the University of California at Davis. How sweet it is Researchers in Parlier have come up with a new seedless grape variety that should stand out in markets because its raspberry-red skin is a brighter color than that of other midseason fresh red grapes. Called "Sweet Scarlet," the flesh has a light muscat flavor that provides a different taste from most red seedless varieties. It was developed by horticulturist David W. Ramming and technician Ronald E.

Tarailo with the Agricultural Research Service. Ready to harvest in late August, Sweet Scarlet resulted from more than a decade of grape breeding and testing. It joins a series of top-quality red, white and black seedless grapes developed by Ramming and Tarailo, who are with the Postharvest Quality and Genetics Research Unit at the San Joaquin Valley Agricultural Sciences Center in Parlier. The new Sweet Scarlet grapes could start showing up in supermarkets within three to four years, Ramming said. The California Table Grape Commis- sion in Fresno is the exclusive licensee for Sweet Scarlet, handling its distribu- tion to nurseries.

Got advice Tom Shultz, who served for 22 years as a dairy specialist with the University of California Cooperative Extension in Tulare County, will bring his dairy expertise out of retirement and back to producers in the Central Valley. Shultz is now a consultant with Intervet an affiliate of Intervet International, one of the world's leading animal health companies and currently ranked third among global animal health suppliers. The company is headquartered in Millsboro, Del. As a consultant, Shultz will be in the field to address herd systems issues and train dairy employees in nutrition and feed management, animal facility planning and animal stress behavior, manure and manure water manage- ment, control of nuisance insects and milk quality control. Fluent in Spanish, his work has been published in English and Spanish in numerous animal science journals.

"It is ironic that the top milk-produc- ing county in California has been without dairy extension support since retirement in 2001," said Jim Graber, Intervet dairy marketing manager. Producers can request an employee- training meeting with Shultz in English Spanish by contacting their Intervet sales representative at (559) 636-8810 or by e-mailing Odds ends Look for new apartments and office buildings to sprout on the southwest corner of Blythe and Clinton avenues west of Freeway 99. A Central Coast group called Mid State Investors bought the land. Sanford Nax, Dennis Pollock and Robert Rodriguez contributed to Word on the Street. It was compiled by Nax.

The reporter can be reached at or 441-6495. Continued from Page B5 FRESNO BEE FILE Wal-Mart Stores Inc. posted sales of almost $259 billion last year. Center: Company in expansion mode Mutual: Risk can vary among potential buying opportunities Word: Parlier researchers create new grape variety 05 09 26 03 04 career colleges, inc. 432-4343 LEARN BARBER HAIRSTYLING or COSMETOLOGY HAIRSTYLING Classes Now Forming Barber College More.

B6 MONDAY, MARCH 22, 2004 THE FRESNO BEE WWW.FRESNOBEE.COM.