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DAIN BOSWORTH: NORTHWEST RESULTS MIXED DURING THIRD QUARTER; STOCK MARKET SERVES AS NO BELLWETHER FOR ECONOMIC RECOVERY

DAIN BOSWORTH: NORTHWEST RESULTS MIXED DURING THIRD QUARTER; STOCK MARKET
 SERVES AS NO BELLWETHER FOR ECONOMIC RECOVERY
 SEATTLE, Sept. 30 /PRNewswire/ -- The bad news is that anyone looking to the stock market to see what the prospects are for economic recovery will be disappointed with the third quarter's results. They're mixed, at best, said Northwest research analysts at Dain Bosworth Incorporated in Seattle.
 The good news is that the quarterly stock market results at least are on the positive side, even if it's only marginally so. The Dain Bosworth Pacific Northwest Index of 57 companies was up 0.90 percent to 373.736 during the third quarter. Among the major national indexes, the NASDAQ (+3.49 percent) gained the most during the quarter. The S&P 500 was up 2.37 percent, while the Dow Jones Industrials fell 1.41 percent.
 Dain's Pacific Northwest Index is divided into six segments which reflect the most important sectors of the region's economy. The segments cover Northwest utilities, manufacturing, financial institutions, retail/services, technology and natural resources companies. Dain Bosworth tracks the Northwest stocks as one measure of how well the region's economy is performing when compared with the rest of the nation.
 During the third quarter, the stocks of 33 companies in the Dain Pacific Northwest Index were up, while 24 declined. The biggest winner was Electro Scientific (+36.36 percent to $3.750). Others in the top five of the Dain Northwest Index included NIKE (+27.97 percent to $79.500), Tektronix (+25.71 percent to $22.000), Data I/O (+25.000 percent to $4.375) and NERCO (+22.22 percent to $15.125).
 The five worst-performing stocks in Dain's Northwest Index included SpaceLabs Medical (-14.29 percent to $22.500), Penwest (-27.45 percent to $18.500), Mentor Graphics (-30.49 percent to $7.125) and Advanced Technology Labs (-31.19 percent to $17.375). The region's largest loser during the third quarter was Egghead Discount Software (-51.70 percent to $8.875).
 Four of Dain's six industry segments were up during the third quarter of 1992, and two were down. The leading segment was Dain's list of utility companies (+3.93 percent), which were led by Portland General (+17.83 percent), Pacific Telecom (+7.37 percent) and Northwest Natural Gas (+6.61 percent). Only two stocks in this segment lost ground during the quarter. Montana Power was down 1.90 percent, while Washington Energy lost 7.69 percent.
 Dain's index of 10 regional technology companies (+2.29 percent) also ended up on the positive side of the ledger for the second quarter. The biggest gainers were Electro Scientific, Tektronix and Data I/O. Microsoft (+15.00 percent) was also healthy during the quarter. The biggest technology losers were Mentor Graphics and Advanced Technology Labs.
 "After hitting a historic low in its share price during the first half of the year, Electro Scientific rose on the news of a marginally profitable fiscal quarter after having posted enormous losses earlier in the year," said Dain research analyst George Haloulakos.
 "Microsoft's strength continued, with the company showing strong momentum in the spreadsheet area, as well as in Windows," said Dain technology analyst Glenn Powers. "Microsoft gets nearly half its revenue in Europe, so the weak U.S. dollar during the past six weeks should also help Microsoft's results."
 The 11 stocks in Dain's manufacturing index (+1.88 percent) also finished in the plus column during the quarter. Notable winners included NIKE, Esterline (+13.43 percent) and VWR Corp. (+12.28 percent). The biggest manufacturing losers included Paccar (-8.58 percent) and Penwest (-27.45 percent). Boeing was down 8.15 percent.
 "Boeing's stock price was hurt by lower orders and deferral of aircraft deliveries by several customers," Haloulakos said. "Morrison Knudsen (-0.61 percent) remained in a holding pattern as earnings appear to be bottoming and there is strong recovery potential from recent contract awards," he said. "Penwest's stock price declined as the company's recently completed August fiscal-year earnings are expected to be lower -- the first profit decline since 1989," Haloulakos said.
 Dain's list of nine financial institutions (+0.62 percent) barely finished on the positive side of the quarterly ledger. The biggest winner was Horizon Bank (+15.23 percent). The biggest losers included Washington Federal S&L (-4.59 percent) and U.S. Bancorp (-6.74 percent).
 "In spite of this quarter's results, our regional financial index is up 18.20 percent for the year-to-date," noted Dain Financial Analyst R. Jay Tejera. "Earnings for the industry, both locally and nationally, have been strong for the first half of 1992 and are forecast to remain that way for the rest of the year and into 1993, as well. However, most of the strength has been attributable to margin expansion as a function of lower interest rates.
 "With a broad consensus developing that rates are about as low as they are going to get, the odds for further cuts are low," Tejera said. "Investors are now waiting to see if banks can generate any loan growth, a key factor that has been missing during the first six months of 1992.
 "In the midst of a rather nondescript quarter, there were two noteworthy standouts," he said. "Horizon Bank was up on the strength of a 25-percent increase in its dividend. U.S. Bancorp's earnings have been reduced as improvement in the credit quality of its loan portfolio has been slower than expected."
 The 10 natural resource companies (-0.30 percent) in the Dain Index were anemic once again this quarter. The winners included NERCO (+22.22 percent) and Boise Cascade (+6.16 percent). Weyerhaeuser (+2.55 percent) and Burlington Resources (+1.87 percent) were up slightly. This segment's largest losers included Hecla Mining (-10.13 percent), Coeur d'Alene Mines (-11.03 percent) and Longview Fibre (-12.12 percent).
 "The slow rate of recovery in both order rates and paperboard pricing caused Longview Fibre and Willamette Industries to give up some share price gains from earlier in the year," Haloulakos noted. "Boise Cascade was up as the worst of its earnings decline now appears to be behind the company."
 Dain's list of eight Pacific Northwest retail/service companies lost 3.61 percent as a group and finished last among all six segments for the second consecutive quarter. The biggest winner was Airborne Freight (+13.45 percent), while Fred Meyer (+9.64 percent) did respectably during the quarter, as well. Those which lost ground included Alaska Air Group (-6.08 percent) and Costco (-7.89 percent). The bottom simply dropped out for Egghead.
 "Egghead reported slower than expected sales and earnings," Powers said. "The price war in computer software has definitely had a negative effect on them. The company's gross margins are down two percentage points relative to a year ago. In an industry that runs on 3-percent profit margins, that kind of decline has a big impact."
 Dain Bosworth is a full-service stock brokerage and investment banking firm with 13 Pacific Northwest offices located in Bellevue, Bellingham, Bremerton, Everett, Seattle and Spokane, Wash.; in Bend, Eugene, Medford, Portland and Salem, Ore.; and in Billings and Great Falls, Mont. The Minneapolis-based corporation has 52 offices nationwide, is a member of the New York Stock Exchange and is a subsidiary of Inter-Regional Financial Group (IFG). The firm has more than $200 million in annual revenues through service to 250,000 investors.
 NOTE TO EDITORS: A complete set of stock performance tables is available for your information
 -0- 09/30/92
 CONTACT: George Haloulakos, 206-621-3118, R. Jay Tejera, 206-621-3125, Glenn Powers, 206-621-3116, Deborah L. Wardwell, 206-621-3106, Mary Ekman, 206-621-3191, or Marcy Nichols, 206-621-3247, all of Dain Bosworth Incorporated CO: DAIN BOSWORTH INCORPORATED IN: FIN SU: ECO ST: WA,OR,ID,MT -- SE014 -- X815 09/30/92
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