Birmingham Post-Herald from Birmingham, Alabama • 26

May 10 2003 C4 Business editor Shawn Ryan 325-2341 siyanpostheraldcom Insight Cl Viewpoints C2 Markets C5 (Dlt Birmingham Nenm SATURDAY Birmingham Pout-Herald 0 A i'f PiM -ft KP I May 9 market report Stocks end week upbeat fourth week of gains part of the year and gave the Nasdaq composite and Standard 500 index their fourth through capital expenditures on corporate side" he added "Unless we get that drift lower" sees By HOPE YEN Tl IK ASSfXUATED NEW YORK Wall Street regained its upward momentum Friday after upbeat outlooks from companies such as Intel and Nvidia motivated investors to buy after two days of declines The Dow Jones industrials climbed 113 point Analysts said the outlook news cheered investors worried about a stumbling economy in the later gauges finished higher with the Dow up 03 percent the Nasdaq higher 12 percent and up 04 percent The Dow posted its second straight winning week Dow component Intel rose 71 cents to $1958 after the technology giant said it sees signs of an industry turnaround later this year citing growth in the key China market Nvidia surged $531 or 211 percent to $2137 after the chipmaker reported quarterly earnings that beat estimates by a penny a share it also gave an encouraging outlook for the next quarter Stocks have rallied in recent weeks an upbeat quarterly profits the The Dow closed up 11338 or 13 percent at 860460 more than erasing a two-day loss of 97 points It was the highest level seen since Jan 16 when the blue chips finished at 86977 The broader market also finished higher The Nasdaq gained 3046 or 2 percent to 152015 The SAP rose 1114 or 14 percent to 93341 For the week the three main iilAYER i Finn finad $56 million: A federal judge has approved a criminal fined $56 million against Bayer Corp as part a settlement to resolve allegations overcharged the government insurance program for the poor for two its drags Bayer agreed last month to plead guilty to violating the Federal Prescription Drug Marketing Act and to pay the criminal fine far overcharges involving its an-- tibiodc Cipro and its high blood pressure drug Adalat MEDIA Pension fund vote for directors: Tin pension fund says it dans to withhold votes for five AOL 1 Time Warner Inc directors up far re-election The California Public Employees Retirement System also says it will vote 1 against ratifying the current auditor Emst Young Brad Pacheco spokesman for file $130 billion fund says CalP-lERS will use its 204 million "shares of AOL Time Warner ''stock to vote against board members Netscape founder James Barksdale Hilton Hotels Oorp CEO Stephen Bollenbach Miles Gilbume Franklin Raines and Francis Vincent Jr Shareholders voting for 13 board members on May 16 ENRON 1 to Now company formed with some of assets: Enron Corp announced plans Friday to cluster 19 international power and pipeline assets in a new com-(ny as part of its Chapter 11 reorganization ending efforts to pellthe businesses after they did not draw satisfactory bids The company temporarily is one of two in which creditors will have shares when massive bankruptcy wraps up Moat of the assets are in South and 1 Central America including a Brazilian power plant used in a sham sale to pump up profits at the energy company Enron which filed far bankruptcy in amid massive accounting fraud began seeking bids on its North American pipeline assets and international holdings last WlAT-42 anchors David Lamb and Sherri Jackson read the several years ago Viewers however have not embraced 5 pm news from the WIAT studio Monday The station the change staying with stations whose anchors are well moved to a fast-paced format for reporting more stories known in the area WIAT-42 still lags in viewers STEWART II WELCH III Financial Insights Custodial accounts can help hinder Custodial accounts can be a very useful strategy for gifting assets to children and college savings but investors are often confused about how to use them Recently a client asked me how she could nse excess funds held in one custodial account for the education needs of another child As it turned out which is often the case one child ended up needing significantly more money for education than the other child In most states a minor child camot hold title to assets such as stocks bonds real estate CDs and banking accounts in his name Each state allows you to set up accounts in the name of an adult typically a parent as custodian for the benefit afaminor This custodial account usually takes one of two forms based on either the Uniform Gift to Minon Act or the Uniform Transfer to Minors Act The difference in the two types of accounts is that the UTMA allows the custodian to hold a broader ranged types such as real estate fine art patents 1 and royalties and also provides for more flexibility One advantage transferring assets to a custodial account a child is that income paid on the account is taxed at the tax bracket rather than the tax bracket which is usually higher For a child who is under 14 income received above certain limits would be taxed at the highest tax bracket (called the "kiddie Any gains realized because sale securities would be taxed at the tax bracket aswelL Once money has been transferred to a custodial account it becones the property the child and may not be diverted for purposes other than the benefit that child It also camot be used to pay for items or services that are considered "support the parent suck as food clothing and shelter The custodial fends could be used for items such as college expenses expenses private school summer camps autos and more although there is some debate as to whether some these items would also be considered parental support items One major pitfall regarding custodial accounts is the assets become the propotyd the child when he or die reaches the age majority In Alabama the age majority for an UGMA account is 19 for the UTMA account it is 21 For a state-by-state review UGMA and UTMA age of majority go to wwwfinaidorgsavings ugmaphtmL For parents who have been using custodian accounts to fend college costs you may want to consider rolling those fends over to the new Section 529 plans These plans offer significant advantages over custodial accounts for this purpose For more details on 529 college savings plans go to wwwwelchgroupcom At the bottom the home page click an Cool Links and then click on Internet Guide to 529 Plans Saving for Cdlege So with all these rules associated with the custodial account how did we solve my dilemma transfening assets from one child's custodial account to the other child who needed more money for college? We recommended that the parents ask the child to make a gift to his sibling for the needed fends once the child was legal age to do so The parents would not be aide to force the child to do this but believed the child would be agreeable Stewart II Welch iff CFP AEP is the founder qf The Welch Group which specializes in prodding fee-only wealth management services to health' care professionals and retina Consult your financial adviser before acting ondus advice WIAT-42 February ratings straight winning week "When you have industry leaden saying they think there will be a slight recovery in the PC market a whole domino effect with software companies and chip companies doing said Tim Smalls managing director at SG Cowen Securities the area where you have to get the market moving paced format personalities say the format is limiting and Birmingham viewers aren't ready fee it "The public was really demanding change" said acting General Manager Todd Buccelli who has been with the station for two years "There was a litany of negatives associated with the news product "The positioning line about time' was all based on being different We didn't want to be just another coverage station (Station leaders) wanted to eliminate in the minds of the viewer the old product and create a unique approach to de- livering the day's news weather and sports" For the 10 pm weeknight newscasts ratings climbed from a 1 ratings point in February 1997 to 4 ratings points in 1998 to 5 points in 1999 Since then the ratings have held steady at 4 The 5pm weeknight newscasts saw similar growth and leveling off while the station launched a 6pm weeknight newscast in 2001 holding steady at 3 ratings points tration Many of the products also were advertised as anthrax defenses during the 2001 bioterrorist attack and the government cracked down then too Consumers don't stand just to waste money because some of the bogus treatments could cause side effects Belladonna for instance is a poisonous plant small amounts of its alkaloids are used to make certain prescription medications Colloidal silver can turn the skin blue Scammers frequently claim certain dietary supplements treat serious diseases by boosting the immune system claims that are bunk said FDA Commissioner Mark McClellan Among companies targeted was Young Again Nutrients whose Web site still claimed on Friday that its beta glucan "strengthens th4 immune system WIAT-42 changed from its conventional newscast format to a taster-paced show in February 1 998 The changes resulted in ratings leaps but five years later numbers have leveled off 5 pm 6 5 4' 4 fast lacks familiar By ROBIN CLEM0W BIRMINGHAM POST-1 IKKAIJ) Five years ago a Birmingham TV station lagging far behind its competitors in news ratings decided to step outside the box in hopes (V gaining viewers Managers at CBS-affiliate WBMG-42 took its newscast off the air in January 1998 replacing the two half-hour skits with a ticking clock counting down to something new A month later the station came back an as WIAT-42 with a new format and slogan: about time" The idea was to air more stories by cutting chit-chat and pas-saffs to reporters in the field The change produced immediate growth in viewership But the growth quickly fell Today the station remains in last place among Birmingham stations with newscasts WIAT-42 leaders believe the format still has the potential to grow viewership But industry experts 2 2 I 1 1i '02 '03 Year the Birmingham TV market watching a station September 2001 '00 Jacquelyn MartmFoitrHerald pm 10 pm 5 4: i 2i I i' Jessica MastonPost-Hcrald viewers according to Nielsen Ratings determine the cost of advertising during the newscast aid Please turn to WIAT page CB worker and relative infected by a traveler Specialists recommend masks and other protective gear only for people in dose contact with suspected patients "Cbmmonsense noted the average person McClellan said: If you've had contact with a traveler to a SARS-hit area and develop symptoms consult a doctor Avoid travel to SARS hot spots Wash hands frequently as colds and other viruses can be transmitted by touching something in the path of a sneeze and then touching your own face And be savvy health officials advised: If scientists woe to discover a SARS treatment would you really hear about it through an Internet sales pitch instead of the news? Source: Nielsen Media Research The ratings represents the per- centage of people in the Birmingham market watching a station at a given time Currently 1 ratings point represents more than 17000 Numbers have been rounded Ratings reflect the percentage of people in at a given time WIAT-42 began a 6 pm newscast in Tbode said the offers the com-' pany received were too low Enron said the company would have an independent board of directors and would be insulated from liabilities associated with the bankruptcy The second company known for now as will include three North American natural "as pipelines ECONOMY Fewer banka tightening 1 lending: Ffewer UR banks restarted tightening business standards during the past 'three months encouraging news 'as the economy tries to regain -firmer footing The Federal Reserve in its quarterly loan offi-Cers survey released Friday said that 107 percent of 56 -large UR banks polled reported restrictive approval stan-dards for loans to large and me-gium-ized companies in the three months ending in April represents a significant difference" the Fed said from 'its previous survey in January In the January survey 22 large UR banks lend- for large and me-vfoum companies Banks told the that aggressive tightening bf lending standards over the 'past several years has helped reduce "the incidence of new problem loan" ALABAMA SYULCAN MATERIALS Jl Dividend declared: Bir- mfoghamhased Vulcan Materi-i als Qx declared a quarterly div-- 'Idend of 245 cents per share payable June 10 to shareholders of record an May 23 Vulcan Materials is a producer of trial materials including con-' struction aggregates and chemi- cals supplying chkralkali and other industrial chemicals WEB sites told to halt SARS scams By LAURAN NEERGAAHD THE ASSOCIATED PRESS WASHINGTON The government ordered 48 Web sites on Friday to quit promoting bogus ways to prevail and treat SARS as health officials urged Americans to beware of quacks preying on their fears Internet sites are illegally claiming that dietary supplements from vitamin and oregano oil to colloidal silver and belladonna can treat or cure the new respiratory illness regulators charged Others promise SARS "protection that include personal air purifiers gloves masks and alcohol wipes 'Ream artists follow the headlines trying to make a tost buck with products that play off the news" said Howard Beales of the Federal Trade Commission which conducted the crackdown along I with the FtodU and Drug Adminis defenses against all infectious viral diseases and passible SARS" FDA earlier this year seized $500000 of different Young Again products on another charge The company did not return a call seeking comment Companies that cease illegal marketing could have their products seized and be subject to prosecution and thousands of dollars in fines the government said Scientists have found no effective treatment for SARS the severe acute respiratory syndrome that has infected more than 7000 people worldwide and killed 515 since erupting in China The United States so far has escaped much illness with just 63 probable cases of the new disease and no deaths All but two have been among travelers to China or other countries hit hard by SARS the remaining two were a health.