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Listings (stocks)
C11
MONEY & INVESTING
Offerings
C17
U
Securities
C21
V
NYSE/Amex Bonds
C22
И
NYSE Highs & Lows
C6
WS
FOR 24-HOUR UPDATED NEWS, STOCK QUOT
AND MORE, SEE THE WALL STREET
.com
INTERACTIVE EDITION ON THE WORLD
6/20/97
Tobacco Accord Worries Some, but Not
6.51
+19.45
7800
7775
Profit-Taking
Tobacco-Stock Road
Big I₁
7750
S&P 500 index vs. Dow Jones tobacco industry group; Dec. 31, 1996=100
7725
Severity of Pact
140
Rumors of settlement talks
Settlement talks
Settlement announced
Fail t
confirmed under way
7700
T
W
T
F
Cited for Slump
120
Smol
FROM
12/31
PCT
HEARD
100
S&P 500
+ 1348.24 + 20.91
Tobacco stocks
+
144.72 + 20.66
ON THE
+
20.43 + 13.84
STREET
80
January
February
March
April
May
June
+ 157.96 + 21.32
By
1997
Staff Reporter
+
156.07 + 12.09
By E.S. BROWNING
Source: IDD Information Services/Tradeline
While lots
+ 475.4 + 11.54
Staff Reporter of THE WALL STREET JOURNAL
anti-tobacco,
+ 1024.19 + 5.29
Analysts agree the tobacco settlement
agreed to pay $368.5 billion over 25 years.
Mr. Black, one of the leading advocates of
should be good news for cigarette stocks. It
est so far in pc
Money manager Ben Fischer of NFJ In-
a settlement on Wall Street, puts the
their mutual-f
.86
+22.58
takes a few worst-case scenarios off the
vestment Group in Dallas notes that they
chances at only 60% to 65% that Congress
A year af
6900
table, such as unlimited legal liability or
still could be subject to some lawsuits and
will enact the deal by year-end.
Association c:
devastating regulation. So how come so
that nicotine could be banned entirely in
Can the cigarette companies make the
6875
funds with tol
many investors are dumping the stocks?
2009.
huge settlement payments and continue to
been a perce
Philip Morris, the world's premier cig-
6850
Messrs. Wardlaw, Goldman and Fi-
profit? Mr. Black notes that cigarettes are
'socially con
arette maker, gained for about 20 minutes
scher all expect the stocks to gain in the
a rare case of a still-legal and relatively
avoid the sec
6825
following Friday's announcement, but
longer run. Mr. Fischer says he will hang
cheap item that people can use to relax and
tobacco, alco
then closed down 2, or 4.2%, at 45½. RJR
on to his group's more than one million
relieve stress. He thinks demand will con-
Nabisco Holdings lost 7/8 at 35. Loews,
potentially ha
6800
shares of RJR, but he isn't buying more
tinue. even if prices rise and ads are
T
W
T
F
which owns the Lorillard brand in addition
Such fund
"What gets me is that this ish't the
restricted.
to extensive insurance activities, fell 3½ to
0.17% of the as
end - this is only the beginning," Mr.
How do you know people will still want
12-MO
12-MO LOW
103%.
Fischer says. 'You have to ask. is this
funds, about t
to smokem 20 years? Well, I say, just look
6086.30
Some investors were taking profits;
lower than fi
6872.86
really a panacea? And then, what happens
at marijuanal' the Bernstein analyst says.
others said they were surprised at the
fund research
104.11
100.99
if Congress takes this for a year and chews
That drug 18 neither legal nor advertised,
754.78
severity of some settlement provisions or
on it?" He worries that the stocks could be
cago.
680.83
notes, but upeople are still smoking
119-27
111-3
worried about possible trouble getting
in for volatility.
And respo
needed congressional approval.
Sen. Trent Lott, the Republican major
06
788.67
Mr. Addes the math this way.
among investo
Rex Wardlaw, who manages money for
ity leader, has said it will be September or
Without any settlement, he projects 1998
accepted the A
Wells Fargo Bank's asset-management
-0.11
October at the earliest before Congress can
per-share earnings for Philip Morris of
tobacco and
6.00%
unit, still holds a lot of Philip Morris. But
consider the issue. In the meantime, oppo-
$3 45. Based on Friday's close, the com-
their no-smol
he says he has been taking some profits in
nents will scrutinize the proposal for de-
pany's stock trades at 13 times that
the "AMA Co
5.80
the stock, which looks a lot less cheap than
fects and mount their attack. "There is a
amount, compared to 19 times for stocks in
vestments.' A
it did a few weeks ago. In anticipation of
risk of negative news now," notes Robert
the Standard & Poor's 500; liability worries
tions to thous
5.60
the settlement and because of some court
Bissell, chief investment officer at the
mean investors today won't pay as much
come up with
victories, Philip Morris has gained a hefty
Wells Fargo asset management unit.
for a tobacco stock as for other consumer
funds, out of
5.40
60% from its low of the past 52 weeks, even
All the same, tobacco analysts includ-
stocks.
funds: Almos
counting Friday's drop.
5.20
ing Mr. Goldman of PaineWebber, David
To finance the settlement, the Bern-
socially consci
T
W
T
F
Wells Fargo is advising clients to cut
Adelman of Morgan Stanley and Gary
stein analyst expects cigarette makers to
tobacco stocks
back to the standard 2% weighting dictated
Black of Sanford C. Bernstein all say they
raise prices about 50 cents a pack whole-
Public ser
12-MO LOW
by Philip Morris's size in the Standard &
expect Congress to approve the deal, prob-
sale (more at retail), which he figures will
ing against
5.30%
4.77%
Poor's 500 index, after previously urging
ably by year-end. "Too many powerful
cut consumption by about 11% and knock 15
whether that ti
5.36
4.83
them to take an "overweight" position in
parties, from politicians and lawyers to
cents off Philip Morris per-share earnings.
among investo
5.77
5.37
the stock.
investors and health-care providers, stand
Interest costs of financing settlement pay-
Doug Cogan, W
PaineWebber analyst Emanuel Gold-
5.88
5.44
to benefit.
ments will knock off another 10, cents,
issues for the I
man says he was surprised the companies
But passage is far from a sure thing.
Please Turn to Page C2, Column 3
Please Tw
+0.2
104.00
103.75
Rise in Profit Guidance
Prediction Effects
Sch
As preannouncements become more popular,
103.50
positive earning surprises have lost some
Dilutes Positive Surprises
of their effect and negative surprises have
103.25
With
become more devastating
103.00
Earnings preannouncements
T
W
T
F
"We've had 17 consecutive quarters
(quarterly and annual earnings)
12-MC
12-MOLOW
ABREAST
Isn't
LATE NY
where companies have reported signifi-
2,400
1.7125
1.5355
OF THE
cantly more positive than negative sur-
prises. says Sandip A. Bhagat. chief
1.800
MARKET
officer of Travelers Investment
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"ocrText": "Listings (stocks)\nC11\nMONEY & INVESTING\nOfferings\nC17\nU\nSecurities\nC21\nV\nNYSE/Amex Bonds\nC22\nИ\nNYSE Highs & Lows\nC6\nWS\nFOR 24-HOUR UPDATED NEWS, STOCK QUOT\nAND MORE, SEE THE WALL STREET\n.com\nINTERACTIVE EDITION ON THE WORLD\n6/20/97\nTobacco Accord Worries Some, but Not\n6.51\n+19.45\n7800\n7775\nProfit-Taking\nTobacco-Stock Road\nBig I₁\n7750\nS&P 500 index vs. Dow Jones tobacco industry group; Dec. 31, 1996=100\n7725\nSeverity of Pact\n140\nRumors of settlement talks\nSettlement talks\nSettlement announced\nFail t\nconfirmed under way\n7700\nT\nW\nT\nF\nCited for Slump\n120\nSmol\nFROM\n12/31\nPCT\nHEARD\n100\nS&P 500\n+ 1348.24 + 20.91\nTobacco stocks\n+\n144.72 + 20.66\nON THE\n+\n20.43 + 13.84\nSTREET\n80\nJanuary\nFebruary\nMarch\nApril\nMay\nJune\n+ 157.96 + 21.32\nBy\n1997\nStaff Reporter\n+\n156.07 + 12.09\nBy E.S. BROWNING\nSource: IDD Information Services/Tradeline\nWhile lots\n+ 475.4 + 11.54\nStaff Reporter of THE WALL STREET JOURNAL\nanti-tobacco,\n+ 1024.19 + 5.29\nAnalysts agree the tobacco settlement\nagreed to pay $368.5 billion over 25 years.\nMr. Black, one of the leading advocates of\nshould be good news for cigarette stocks. It\nest so far in pc\nMoney manager Ben Fischer of NFJ In-\na settlement on Wall Street, puts the\ntheir mutual-f\n.86\n+22.58\ntakes a few worst-case scenarios off the\nvestment Group in Dallas notes that they\nchances at only 60% to 65% that Congress\nA year af\n6900\ntable, such as unlimited legal liability or\nstill could be subject to some lawsuits and\nwill enact the deal by year-end.\nAssociation c:\ndevastating regulation. So how come so\nthat nicotine could be banned entirely in\nCan the cigarette companies make the\n6875\nfunds with tol\nmany investors are dumping the stocks?\n2009.\nhuge settlement payments and continue to\nbeen a perce\nPhilip Morris, the world's premier cig-\n6850\nMessrs. Wardlaw, Goldman and Fi-\nprofit? Mr. Black notes that cigarettes are\n'socially con\narette maker, gained for about 20 minutes\nscher all expect the stocks to gain in the\na rare case of a still-legal and relatively\navoid the sec\n6825\nfollowing Friday's announcement, but\nlonger run. Mr. Fischer says he will hang\ncheap item that people can use to relax and\ntobacco, alco\nthen closed down 2, or 4.2%, at 45½. RJR\non to his group's more than one million\nrelieve stress. He thinks demand will con-\nNabisco Holdings lost 7/8 at 35. Loews,\npotentially ha\n6800\nshares of RJR, but he isn't buying more\ntinue. even if prices rise and ads are\nT\nW\nT\nF\nwhich owns the Lorillard brand in addition\nSuch fund\n\"What gets me is that this ish't the\nrestricted.\nto extensive insurance activities, fell 3½ to\n0.17% of the as\nend - this is only the beginning,\" Mr.\nHow do you know people will still want\n12-MO\n12-MO LOW\n103%.\nFischer says. 'You have to ask. is this\nfunds, about t\nto smokem 20 years? Well, I say, just look\n6086.30\nSome investors were taking profits;\nlower than fi\n6872.86\nreally a panacea? And then, what happens\nat marijuanal' the Bernstein analyst says.\nothers said they were surprised at the\nfund research\n104.11\n100.99\nif Congress takes this for a year and chews\nThat drug 18 neither legal nor advertised,\n754.78\nseverity of some settlement provisions or\non it?\" He worries that the stocks could be\ncago.\n680.83\nnotes, but upeople are still smoking\n119-27\n111-3\nworried about possible trouble getting\nin for volatility.\nAnd respo\nneeded congressional approval.\nSen. Trent Lott, the Republican major\n06\n788.67\nMr. Addes the math this way.\namong investo\nRex Wardlaw, who manages money for\nity leader, has said it will be September or\nWithout any settlement, he projects 1998\naccepted the A\nWells Fargo Bank's asset-management\n-0.11\nOctober at the earliest before Congress can\nper-share earnings for Philip Morris of\ntobacco and\n6.00%\nunit, still holds a lot of Philip Morris. But\nconsider the issue. In the meantime, oppo-\n$3 45. Based on Friday's close, the com-\ntheir no-smol\nhe says he has been taking some profits in\nnents will scrutinize the proposal for de-\npany's stock trades at 13 times that\nthe \"AMA Co\n5.80\nthe stock, which looks a lot less cheap than\nfects and mount their attack. \"There is a\namount, compared to 19 times for stocks in\nvestments.' A\nit did a few weeks ago. In anticipation of\nrisk of negative news now,\" notes Robert\nthe Standard & Poor's 500; liability worries\ntions to thous\n5.60\nthe settlement and because of some court\nBissell, chief investment officer at the\nmean investors today won't pay as much\ncome up with\nvictories, Philip Morris has gained a hefty\nWells Fargo asset management unit.\nfor a tobacco stock as for other consumer\nfunds, out of\n5.40\n60% from its low of the past 52 weeks, even\nAll the same, tobacco analysts includ-\nstocks.\nfunds: Almos\ncounting Friday's drop.\n5.20\ning Mr. Goldman of PaineWebber, David\nTo finance the settlement, the Bern-\nsocially consci\nT\nW\nT\nF\nWells Fargo is advising clients to cut\nAdelman of Morgan Stanley and Gary\nstein analyst expects cigarette makers to\ntobacco stocks\nback to the standard 2% weighting dictated\nBlack of Sanford C. Bernstein all say they\nraise prices about 50 cents a pack whole-\nPublic ser\n12-MO LOW\nby Philip Morris's size in the Standard &\nexpect Congress to approve the deal, prob-\nsale (more at retail), which he figures will\ning against\n5.30%\n4.77%\nPoor's 500 index, after previously urging\nably by year-end. \"Too many powerful\ncut consumption by about 11% and knock 15\nwhether that ti\n5.36\n4.83\nthem to take an \"overweight\" position in\nparties, from politicians and lawyers to\ncents off Philip Morris per-share earnings.\namong investo\n5.77\n5.37\nthe stock.\ninvestors and health-care providers, stand\nInterest costs of financing settlement pay-\nDoug Cogan, W\nPaineWebber analyst Emanuel Gold-\n5.88\n5.44\nto benefit.\nments will knock off another 10, cents,\nissues for the I\nman says he was surprised the companies\nBut passage is far from a sure thing.\nPlease Turn to Page C2, Column 3\nPlease Tw\n+0.2\n104.00\n103.75\nRise in Profit Guidance\nPrediction Effects\nSch\nAs preannouncements become more popular,\n103.50\npositive earning surprises have lost some\nDilutes Positive Surprises\nof their effect and negative surprises have\n103.25\nWith\nbecome more devastating\n103.00\nEarnings preannouncements\nT\nW\nT\nF\n\"We've had 17 consecutive quarters\n(quarterly and annual earnings)\n12-MC\n12-MOLOW\nABREAST\nIsn't\nLATE NY\nwhere companies have reported signifi-\n2,400\n1.7125\n1.5355\nOF THE\ncantly more positive than negative sur-\nprises. says Sandip A. Bhagat. chief\n1.800\nMARKET\nofficer of Travelers Investment"
}