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To: Mao II who wrote (3996)	9/1/1999 1:09:00 PM
From: Night Writer	Respond to of 12662

M2, A little news on HRC which I put in bold print. Now I will leave the world of high finance and journey to the world of ditch digging. I like to keep variety in my life.<g> NW FUND VIEW - Inexpensive stocks seen plentiful By Cal Mankowski NEW YORK, Sept 1 (Reuters) - Fund managers who invest in companies that are considered good values based on the price of the stock in relation to book value and earnings say there are plenty of inexpensive stocks from which to pick While fund managers who pursue growth stocks have no qualms about paying 50 or 60 times earnings, value managers prefer to focus on stocks priced closer to 10 times earnings. Barbara Marcin, manager of the Gabelli Blue Chip Value Fund, believes rebounding global economies and the fact that interest rates are no longer falling make the case for investing in value stocks more compelling. She says the era of falling rates and weak overseas economies led investors to put extraordinarily high valuations on growth stocks, while companies with temporary earnings problems or those engaged in economically sensitive businesses were overlooked. "The conditions going forward are going to continue to be more in favor of value stocks than growth stocks," she said in an interview. At Banc One Investment Advisors Corp, large capitalization value manager Kathy Cole approaches value investing by looking for stocks that are undervalued but also offer the prospect of an "earnings catalyst" that can jump-start the stock in six or nine months. One stock on Cole's radar screen is HealthSouth Corp <HRC.N>, a Birmingham, Ala.-based healthcare provider with both outpatient and inpatient services. HealthSouth, whose outpatient surgery and rehabilitation services makes it the largest such company in the United States, has announced plans to split into separate inpatient and outpatient companies. "Outpatient is growing much faster and has much higher margins" than the inpatient business, Cole said in an interview. She believes that at about seven times estimated 1999 earnings HealthSouth is attractively priced. Cole's colleague, William Turner, who focuses on the mid-cap value area, likes two banking companies selling for less than 10 times projected earnings. One is Pacific Century Financial Corp <BOH.N>, parent of Bank of Hawaii. Turner says that the company is expected to implement new efficiencies based on a consultant's report. Another factor that could help the stock is a revival in the economy of Hawaii, which was essentially flat for much of the 1990's. North Fork Bancorp Inc <NFB.N> is another of Turner's favorites. The Melville, N.Y.-based bank in the last few weeks has announced deals to buy JSB Financial Inc <JSB.N> and Reliance Bancorp Inc <RELY.O>. Marcin, who recently joined the Gabelli company from Citibank Global Asset Management, says her newly launched fund will have between 40 and 50 holdings. There are about 200 companies that could be candidates for the fund. Among stocks Marcin likes currently are Allstate Corp <ALL.N>, Mattel Inc <MAT.N>, Cendant Corp <CD.N> and Hughes Electronics Corp <GMH.N>. In the case of GM Hughes, Marcin is eyeing a target price of $85. She says there is hope for a spinoff from General Motors. She believes Cendant has the capability of generating strong cash flow and earnings from its franchise activities in hotels, real estate and car rentals as the company seeks to put an accounting scandal behind it. Marcin views Mattel as a potential $38 stock if it can use technology to grow faster. Insurer Allstate has the potential to return to a valuation of 14 times earnings in a two-year time frame which would lift the stock to $52 per share, Marcin said. Asked how she views the recent flurry of mergers in the commodities and basic industries, Marcin said "the messsage is that there is excess capacity." But she said it may be easier for a value investor to buy potential acquisition candidates rather than bet on the acquiring company. "I think in order for for some of the post-merger (companies) to look like good value investments we need to see a clearer picture of better top line growth and better pricing," she said. Allstate was off 3/16 at 32-5/8 at mid-morning Wednesday while Cendant was trading off 1/8 at 17-7/8. GM Hughes was off 1/16 at 51-9/16 and Mattel was up 3/16 at 21-9/16. HealthSouth was up 7/16 at 8-5/8. Pacific Century was off 1/16 at 18-1/2 and North Fork was up 9/16 at 18-11/16. ((--Wall Street Stocks/212-859-1732)) REUTERS

To: Mao II who wrote (3996)	9/1/1999 1:19:00 PM
From: Night Writer	Respond to of 12662

U.S. TRADING SUMMARY: Wall Street stocks opened to modest gains but quickly retreated from their early peaks as a cautious tone maintained its hold over the market. Analysts said the activity, which mimicked recent sessions in which early market gains quickly dissipated, coupled with Friday's looming release of a critical monthly payrolls report, suggested it was unlikely blue chips were set to sharply reverse course after four straight losses. "If the market is going to break out of this, it's not going to happen until after the payrolls," said Guy Truicko, portfolio manager at Unity Management. "We need leadership in the market and there's very little leadership right now, except in the technology area." Bonds were little changed in the early going.