( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ-1 ( DT the ) ( NN request ) ) ( VP ( VBZ is ) ( VP ( VBN approved ) ( PP ( IN by ) ( NP-LGS ( DT both ) ( NP ( DT the ) ( NNP House ) ) ( CC and ) ( NP ( NNP Senate ) ) ) ) ) ) ) ) ( NP-SBJ-2 ( NNP Mr. ) ( NNP Cheney ) ) ( VP ( MD would ) ( VP ( VB need ) ( NP ( NP ( JJ only ) ( NN permission ) ) ( PP ( IN from ) ( NP ( NP ( DT the ) ( NNP White ) ( NNP House ) ( NNP Office ) ) ( PP ( IN of ) ( NP ( NNP Management ) ( CC and ) ( NNP Budget ) ) ) ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB move ) ( NP ( DT the ) ( NN money ) ) ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NNP Senate ) ( NN budget ) ( NNS analysts ) ) ) ) ) ) )

If the request is approved by both the House and Senate Mr. Cheney would need only permission from the White House Office of Management and Budget to move the money according to Senate budget analysts


( S ( NP-SBJ ( DT That ) ) ( VP ( MD would ) ( VP ( VB give ) ( NP ( DT the ) ( NNP Pentagon ) ) ( NP ( NP ( NN flexibility ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( NP-SBJ ( DT no ) ( JJ other ) ( JJ federal ) ( NN agency ) ) ( VP ( VBZ has ) ) ) ) ) ) ) )

That would give the Pentagon flexibility that no other federal agency has


( SINV ( S-TPC-2 ( NP-SBJ ( PRP It ) ) ( VP ( VBZ 's ) ( NP-PRD ( NP ( RB simply ) ( DT a ) ( NN way ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG making ) ( S ( NP-SBJ ( DT the ) ( NNS cuts ) ) ( ADJP-PRD ( ADJP ( RBR less ) ( JJ onerous ) ( PP ( IN for ) ( NP ( NN defense ) ) ) ) ( SBAR ( IN than ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP are ) ( PP-PRD ( IN for ) ( NP ( JJ domestic ) ( NNS programs ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Chairman ) ( NNP James ) ( NNP Sasser ) ) ( PRN ( NP ( NP-LOC ( NP ( NNP D. ) ) ( NP ( NNP Tenn ) ) ) ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Senate ) ( NNP Budget ) ( NNP Committee ) ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( MD would ) ( VP ( VB oppose ) ( NP ( DT the ) ( NN request ) ) ) ) ) ) ) ) ) ) )

It 's simply a way of making the cuts less onerous for defense than they are for domestic programs said Chairman James Sasser D. Tenn of the Senate Budget Committee who said he would oppose the request


( S ( S-TPC-3 ( NP-SBJ ( DT That ) ) ( VP ( VBZ is ) ( RB n't ) ( ADJP-PRD ( JJ consistent ) ( PP ( IN with ) ( NP ( NP ( DT the ) ( NN kind ) ) ( PP ( IN of ) ( NP ( NP ( NN discipline ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( NP-SBJ-2 ( NNP Gramm-Rudman ) ) ( VP ( VBZ is ) ( VP ( VBN supposed ) ( S ( VP ( TO to ) ( VP ( VB impose ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )

That is n't consistent with the kind of discipline that Gramm-Rudman is supposed to impose he said


( S ( NP-SBJ ( NP ( DT The ) ( NN president ) ( POS 's ) ) ( NN request ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB indicate ) ( SBAR ( WHADVP-1 ( WRB how ) ) ( S ( NP-SBJ ( NNP Mr. ) ( NNP Cheney ) ) ( VP ( MD would ) ( VP ( VB shift ) ( NP ( DT the ) ( NN money ) ) ) ) ) ) ) ) )

The president 's request did n't indicate how Mr. Cheney would shift the money


( S ( NP-SBJ ( DT A ) ( NNP Pentagon ) ( NN official ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( DT the ) ( NN request ) ) ( VP ( VBD was ) ( VP ( VBN made ) ( S-PRP ( VP ( TO to ) ( VP ( VB give ) ( NP ( DT the ) ( NN department ) ) ( NP ( NP ( JJ maximum ) ( NN flexibility ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB deal ) ( PP-CLR ( IN with ) ( NP ( DT the ) ( NNS cuts ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

A Pentagon official said the request was made to give the department maximum flexibility to deal with the cuts


( S ( NP-TMP ( JJ Last ) ( NN week ) ) ( NP-SBJ ( NNP Budget ) ( NNP Director ) ( NNP Richard ) ( NNP Darman ) ) ( VP ( VBD structured ) ( NP-2 ( NP ( DT the ) ( ADJP ( QP ( CD 16.1 ) ( CD billion ) ) ) ( NN spending ) ( NN reduction ) ) ( NP ( SBAR-NOM ( WHNP-1 ( NP ( NN half ) ) ( PP ( IN of ) ( NP ( WDT which ) ) ) ) ( S ( VP ( MD must ) ( VP ( VB come ) ( PP-CLR ( IN from ) ( NP ( NN defense ) ) ) ) ) ) ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB impose ) ( NP ( QP ( DT a ) ( JJ little ) ( NN bit ) ( JJR more ) ) ( NN discipline ) ) ( PP ( IN by ) ( S-NOM ( VP ( VBG applying ) ( NP ( NNS cuts ) ) ( PP-CLR ( TO to ) ( NP ( NP ( DT each ) ( JJ individual ) ( NN program ) ( NN project ) ( CC or ) ( NN activity ) ) ( PP ( IN in ) ( NP ( DT the ) ( NN budget ) ) ) ) ) ) ) ) ) ) ) ) )

Last week Budget Director Richard Darman structured the 16.1 billion spending reduction half of which must come from defense to impose a little bit more discipline by applying cuts to each individual program project or activity in the budget


( S ( S-TPC-1 ( NP-SBJ ( DT That ) ) ( VP ( MD would ) ( VP ( VB give ) ( NP ( NNS agencies ) ) ( NP ( JJR less ) ( NN ability ) ( S ( VP ( TO to ) ( VP ( VB fudge ) ( PRT ( RP over ) ) ( NP ( NNS things ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD told ) ( NP ( NNS reporters ) ) ) )

That would give agencies less ability to fudge over things he told reporters


( S ( PP-LOC ( IN Under ) ( NP ( DT the ) ( NN deficit-reduction ) ( NN law ) ) ) ( NP-SBJ-1 ( NP ( NP ( CD 4.3 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP Pentagon ) ( POS 's ) ) ( NN money ) ) ) ) ( CC and ) ( NP ( NP ( CD 5.3 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( JJ other ) ( NNS agencies ) ( POS ' ) ) ( NN money ) ) ) ) ) ( VBZ has ) ( VP ( VBN been ) ( VP ( VBN canceled ) ) ) )

Under the deficit-reduction law 4.3 % of the Pentagon 's money and 5.3 % of other agencies ' money has been canceled


( S ( NP-SBJ-2 ( NNS Lawmakers ) ) ( VP ( VBP are ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB try ) ( S ( VP ( TO to ) ( VP ( VB restore ) ( NP ( DT the ) ( NNS funds ) ) ) ) ) ) ) ) ( SBAR-TMP ( IN once ) ( S ( NP-SBJ-1 ( DT a ) ( VBG pending ) ( NN deficit-cutting ) ( NN measure ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBN signed ) ( PP-CLR ( IN into ) ( NP ( NN law ) ) ) ) ) ) ) ) ) ) )

Lawmakers are expected to try to restore the funds once a pending deficit-cutting measure has been signed into law


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( NN growth ) ) ( VP ( VBZ regains ) ( NP ( PRP$ its ) ( NN glamour ) ) ( PP-LOC ( IN among ) ( NP ( NNS investors ) ) ) ) ) ) ( NP-SBJ ( NP ( DT a ) ( JJ sluggish ) ( NN segment ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Nasdaq ) ( JJ over-the-counter ) ( NN market ) ) ) ) ( VP ( MD could ) ( VP ( VB show ) ( NP ( DT some ) ( NN flash ) ) ) ) )

If growth regains its glamour among investors a sluggish segment of the Nasdaq over-the-counter market could show some flash


( S ( NP-SBJ ( DT Some ) ( NN stock ) ( NNS pickers ) ) ( ADVP-TMP ( RB already ) ) ( VP ( VBP are ) ( VP ( VBG targeting ) ( NP ( NP ( DT the ) ( NNP OTC ) ( NN market ) ) ( SBAR ( WHADVP-1 ( WRB where ) ) ( PRN ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP say ) ) ) ) ( SINV-2 ( VP ( VBP await ) ) ( NP-SBJ ( NP ( NN plenty ) ) ( PP ( IN of ) ( NP ( ADJP ( JJ small ) ( CC and ) ( JJ medium-sized ) ) ( NN growth ) ( NNS stocks ) ) ) ) ) ) ) ) ) )

Some stock pickers already are targeting the OTC market where they say await plenty of small and medium-sized growth stocks


( S-1 ( NP ( NP ( JJS Best ) ) ( PP ( IN of ) ( NP ( DT all ) ) ) ) ( PRN ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP add ) ) ) ) ( NP-SBJ ( DT these ) ( NN growth ) ( NNS issues ) ) ( PP ( IN unlike ) ( NP ( NP ( PRP$ their ) ( JJ big ) ( JJ blue-chip ) ( NNS cousins ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ) ) ) ) ( VP ( VBP are ) ( VP ( VBG languishing ) ( PP-CLR ( IN at ) ( NP ( JJ depressed ) ( NNS prices ) ) ) ) ) )

Best of all they add these growth issues unlike their big blue-chip cousins on the New York Stock Exchange are languishing at depressed prices


( S-2 ( NP-SBJ-1 ( NN Growth ) ( NNS stocks ) ) ( VP ( MD will ) ( VP ( VB return ) ( S ( VP ( TO to ) ( VP ( VB favor ) ) ) ) ( PRN ( S ( NP-SBJ ( DT some ) ( NNS analysts ) ( CC and ) ( NN money ) ( NNS managers ) ) ( VP ( VBP think ) ) ) ) ( PP-PRP ( PP ( IN because ) ( IN of ) ( NP ( NP ( DT the ) ( NNS jitters ) ) ( VP ( VBN caused ) ( PP ( IN by ) ( NP-LGS ( NP ( NP ( DT the ) ( NN market ) ( POS 's ) ) ( JJ steep ) ( NN slide ) ) ( PP-TMP ( IN on ) ( NP ( NNP Oct. ) ( CD 13 ) ) ) ) ) ) ) ) ( CC and ) ( PP ( RB because ) ( IN of ) ( NP ( NP ( DT the ) ( JJ current ) ( NN swell ) ) ( PP ( IN of ) ( NP ( JJ disappointing ) ( NNS earnings ) ( NNS announcements ) ) ) ) ) ) ) ) )

Growth stocks will return to favor some analysts and money managers think because of the jitters caused by the market 's steep slide on Oct. 13 and because of the current swell of disappointing earnings announcements


( S ( PP-LOC ( IN Against ) ( NP ( JJ such ) ( DT a ) ( NN backdrop ) ) ) ( NP-SBJ ( NP ( NNS companies ) ) ( PP ( IN with ) ( NP ( NP ( JJ proven ) ( NN track ) ( NNS records ) ) ( PP ( IN of ) ( NP ( NP ( NNS earnings ) ( NNS gains ) ) ( PP ( IN of ) ( NP ( QP ( CD 20 ) ( NN % ) ( CC or ) ( RB so ) ) ) ) ) ) ) ) ) ( ADVP-TMP ( RB annually ) ) ( VP ( VBP have ) ( NP ( JJ extra ) ( NN appeal ) ) ) )

Against such a backdrop companies with proven track records of earnings gains of 20 % or so annually have extra appeal


( SINV ( S-TPC-2 ( S ( NP-SBJ-1 ( DT The ) ( NN market ) ) ( VP ( MD will ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VB look ) ( PP-CLR ( IN for ) ( NP ( DT a ) ( JJ new ) ( NN theme ) ) ) ( ADVP-TMP ( RB now ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT that ) ( NN theme ) ) ( VP ( MD will ) ( VP ( VB be ) ( NP-PRD ( NP ( DT a ) ( NN return ) ) ( PP ( TO to ) ( NP ( NN growth ) ) ) ) ) ) ) ) ( VP ( VBZ declares ) ) ( NP-SBJ ( NP ( NNP Mary ) ( NNP Farrell ) ) ( NP ( DT a ) ( NNP PaineWebber ) ( NN analyst ) ) ) )

The market will have to look for a new theme now and that theme will be a return to growth declares Mary Farrell a PaineWebber analyst


( SINV ( PP-TPC-1 ( IN Among ) ( NP ( PRP$ her ) ( NNP OTC ) ( NNS picks ) ) ) ( VP ( VBP are ) ) ( NP-SBJ ( NP ( NNP Oshkosh ) ( NNP B'Gosh ) ) ( CC and ) ( NP ( NNP A&W ) ( NNPS Brands ) ) ) )

Among her OTC picks are Oshkosh B'Gosh and A&W Brands


( S ( PP ( IN Like ) ( NP ( JJ many ) ( NNP OTC ) ( NN growth ) ( NNS issues ) ) ) ( NP-SBJ ( PRP they ) ) ( VP ( VBP have ) ( NP ( NP ( NN market ) ( NNS values ) ) ( PRN ( SBAR ( IN as ) ( S ( VP ( VBN measured ) ( PP ( IN by ) ( NP-LGS ( NP ( NN stock ) ( NN price ) ) ( PP ( CC times ) ( NP ( NP ( NNS shares ) ) ( ADJP ( JJ outstanding ) ) ) ) ) ) ) ) ) ) ( PP ( IN of ) ( NP ( QP ( RB roughly ) ( CD 100 ) ( CD million ) ( TO to ) ( CD 500 ) ( CD million ) ) ) ) ) ) )

Like many OTC growth issues they have market values as measured by stock price times shares outstanding of roughly 100 million to 500 million


( S ( NP-SBJ-2 ( DT Some ) ) ( VP ( VBP like ) ( S ( VP ( TO to ) ( VP ( VB specialize ) ( PP-CLR ( IN in ) ( NP ( NP ( NN growth ) ( NNS companies ) ) ( SBAR ( WHNP-1 ( WP$ whose ) ( NNS shares ) ) ( S ( VP ( VBP have ) ( RB n't ) ( VP ( VBN traded ) ( ADVP-MNR ( RB publicly ) ) ( ADVP-TMP ( RB very ) ( JJ long ) ) ) ) ) ) ) ) ) ) ) ) )

Some like to specialize in growth companies whose shares have n't traded publicly very long


( S ( NP-SBJ ( DT These ) ) ( VP ( VBP are ) ( ADVP-TMP ( RB sometimes ) ) ( VP ( VBN dubbed ) ( NP ( VBG emerging ) ( NN growth ) ( NNS companies ) ) ( SBAR-ADV ( IN though ) ( S ( NP-SBJ ( PRP they ) ) ( ADVP ( RB also ) ) ( VP ( VBP have ) ( NP ( JJ expanding-profit ) ( NN track ) ( NNS records ) ) ) ) ) ) ) )

These are sometimes dubbed emerging growth companies though they also have expanding-profit track records


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( JJ many ) ( NN growth ) ( NNS stocks ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ small ) ) ) ) ) ( NP-SBJ ( RB not ) ( DT all ) ( JJ small ) ( NNS stocks ) ) ( VP ( VBP have ) ( NP ( JJ earnings-growth ) ( NN momentum ) ) ) )

While many growth stocks are small not all small stocks have earnings-growth momentum


( S ( NP-SBJ ( DT That ) ) ( VP ( VBZ 's ) ( NP-PRD ( DT an ) ( JJ important ) ( NN distinction ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( NP ( DT some ) ( NNS analysts ) ( CC and ) ( NNS brokers ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( ADVP-TMP ( RB perennially ) ) ( VP ( VBP predict ) ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( JJ small ) ( NNS stocks ) ) ( VP ( VBP are ) ( VP ( IN about ) ( S ( VP ( TO to ) ( VP ( VB outperform ) ( NP ( JJR bigger ) ( NNS issues ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( MD may ) ( VP ( VB use ) ( NP-3 ( NP ( DT any ) ( NN spurt ) ) ( PP ( IN in ) ( NP ( NN growth ) ( NNS issues ) ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB help ) ( S ( NP-SBJ ( PRP them ) ) ( VP ( VB sell ) ( NP ( DT all ) ( JJ small ) ( NNS stocks ) ) ) ) ) ) ) ) ) ) ) ) )

That 's an important distinction because some analysts and brokers who perennially predict that small stocks are about to outperform bigger issues may use any spurt in growth issues to help them sell all small stocks


( SINV ( S-TPC-1 ( S ( NP-SBJ ( PRP You ) ) ( VP ( MD can ) ( VP ( VB find ) ( NP ( DT some ) ( JJ good ) ( NN quality ) ( NNS companies ) ) ( PP-LOC ( IN over ) ( NP ( DT the ) ( NN counter ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( NNS investors ) ) ( VP ( MD should ) ( VP ( VB be ) ( ADJP-PRD ( JJ selective ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP John ) ( NNP Palicka ) ) ( NP ( NP ( JJ chief ) ( NN portfolio ) ( NN manager ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NNP Midco ) ( NNPS Investors ) ) ( NP ( NP ( DT a ) ( NAC-LOC ( NNP Newark ) ( NNP N.J. ) ) ( NN money ) ( NN management ) ( NN company ) ) ( PP ( IN with ) ( NP ( NP ( QP ( IN about ) ( CD 900 ) ( CD million ) ) ) ( VP ( VBN invested ) ( PP-CLR-LOC ( IN in ) ( NP ( NP ( NN growth ) ( NNS stocks ) ) ( PP ( IN of ) ( NP ( VBG varying ) ( NNS sizes ) ) ) ) ) ) ) ) ) ) ) ) ) )

You can find some good quality companies over the counter but investors should be selective says John Palicka chief portfolio manager at Midco Investors a Newark N.J. money management company with about 900 million invested in growth stocks of varying sizes


( S ( NP-SBJ ( NP ( NP ( NNP Mr. ) ( NNP Palicka ) ( POS 's ) ) ( NNS picks ) ) ( PP ( IN from ) ( NP ( DT the ) ( NNP OTC ) ( NN market ) ) ) ) ( VP ( VBP include ) ( NP ( NP ( NNP Legent ) ) ( NP ( NNP Mail ) ( NNPS Boxes ) ( NNP Etc. ) ) ( CC and ) ( NP ( NNP Payco ) ( NNP American ) ) ) ) )

Mr. Palicka 's picks from the OTC market include Legent Mail Boxes Etc. and Payco American


( S ( NP-SBJ ( NP ( DT The ) ( JJ main ) ( NN argument ) ) ( PP ( IN for ) ( NP ( NN growth ) ( NNS stocks ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( PRP$ their ) ( RB usually ) ( JJ superior ) ( NN performance ) ) ( PP-LOC ( IN in ) ( NP ( DT a ) ( VBG slowing ) ( NN economy ) ) ) ) ) )

The main argument for growth stocks is their usually superior performance in a slowing economy


( SINV ( S-TPC-1 ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( DT the ) ( NN market ) ) ( VP ( VB refocuses ) ( PP-CLR ( IN on ) ( NP ( NNS earnings ) ) ) ) ) ) ( NP-SBJ ( PRP we ) ) ( VP ( MD should ) ( VP ( VB get ) ( NP ( NP ( JJR better ) ( NNS valuations ) ) ( PP ( IN of ) ( NP ( NN growth ) ( NNS stocks ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP L. ) ( NNP Keith ) ( NNP Mullins ) ) ( NP ( NP ( DT a ) ( JJ growth-stock ) ( NN analyst ) ) ( PP-LOC ( IN at ) ( NP ( NNP Morgan ) ( NNP Stanley ) ) ) ) ) )

If the market refocuses on earnings we should get better valuations of growth stocks says L. Keith Mullins a growth-stock analyst at Morgan Stanley


( S-1 ( ADVP-TMP ( RB Eventually ) ) ( PRN ( NP-SBJ ( PRP he ) ) ( VP ( VBZ believes ) ) ) ( NP-SBJ-2 ( NNS investors ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADJP-PRD ( JJ willing ) ( S ( VP ( TO to ) ( VP ( VB pay ) ( NP ( JJR higher ) ( NNS prices ) ) ( PP ( IN for ) ( NP ( NP ( NNS companies ) ) ( PP ( IN with ) ( NP ( NP ( JJ proven ) ( NN track ) ( NNS records ) ) ( PP ( IN of ) ( NP ( NNS earnings ) ( NN growth ) ) ) ) ) ) ) ) ) ) ) ) ) )

Eventually he believes investors will be willing to pay higher prices for companies with proven track records of earnings growth


( S ( PP ( IN In ) ( NP ( NP ( NN anticipation ) ) ( PP ( IN of ) ( NP ( DT that ) ( NN shift ) ) ) ) ) ( NP-SBJ ( NP ( PRP he ) ) ( CC and ) ( NP ( JJ other ) ( NNS analysts ) ) ) ( VP ( VBP are ) ( VP ( VBG encouraging ) ( S ( NP-SBJ ( PRP$ their ) ( NNS clients ) ) ( VP ( TO to ) ( VP ( VB buy ) ( NP ( JJ such ) ( NNS issues ) ) ( ADVP-TMP ( RB now ) ) ) ) ) ) ) )

In anticipation of that shift he and other analysts are encouraging their clients to buy such issues now


( S ( ADVP ( RB Understandably ) ) ( NP-SBJ ( JJR smaller ) ( NN growth ) ( NNS stocks ) ) ( VP ( VBP have ) ( RB n't ) ( VP ( VBN been ) ( PP-PRD ( IN in ) ( NP ( NN favor ) ) ) ( ADVP-TMP ( RB recently ) ) ) ) )

Understandably smaller growth stocks have n't been in favor recently


( S ( S-TPC-1 ( NP-SBJ ( NP ( DT The ) ( JJ average ) ( NN issue ) ) ( PP ( IN on ) ( NP ( NP ( NNP Standard ) ( CC & ) ( NNP Poor ) ( POS 's ) ) ( JJ 500-stock ) ( NN Index ) ) ) ) ( VP ( VBD gained ) ( NP-EXT ( CD 35 ) ( NN % ) ) ( NP-TMP ( JJ last ) ( NN year ) ) ) ) ( NP-SBJ ( NP ( NNP Ms. ) ( NNP Farrell ) ) ( PP ( IN of ) ( NP ( NNP PaineWebber ) ) ) ) ( VP ( VBZ says ) ) )

The average issue on Standard & Poor 's 500-stock Index gained 35 % last year Ms. Farrell of PaineWebber says


( S ( NP-SBJ ( JJR Smaller-stock ) ( NNS earnings ) ) ( PP ( IN by ) ( NP ( NN comparison ) ) ) ( VP ( VBD rose ) ( PP-EXT ( IN between ) ( NP ( NP ( CD 15 ) ( NN % ) ) ( CC and ) ( NP ( CD 20 ) ( NN % ) ) ) ) ) )

Smaller-stock earnings by comparison rose between 15 % and 20 %


( S ( PP ( IN In ) ( NP ( NN addition ) ) ) ( NP-SBJ ( NNS earnings ) ( NN growth ) ) ( VP ( VBD took ) ( NP-CLR ( DT a ) ( JJ back ) ( NN seat ) ) ( PP-CLR ( TO to ) ( NP ( NP ( NP ( NN cash ) ( NN flow ) ) ( NP ( NN restructuring ) ( CC and ) ( NN takeover ) ( NN potential ) ) ( CC and ) ( NP ( NN breakup ) ( NN value ) ) ) ( PP ( IN as ) ( NP ( DT the ) ( JJ preferred ) ( JJ stock-picking ) ( NNS standards ) ) ) ) ) ( PP-TMP ( IN for ) ( NP ( NP ( JJ much ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN year ) ) ) ) ) ) )

In addition earnings growth took a back seat to cash flow restructuring and takeover potential and breakup value as the preferred stock-picking standards for much of the year


( S ( ADVP ( RB Also ) ) ( NP-SBJ ( DT the ) ( JJR smaller ) ( NN growth ) ( NNS stocks ) ) ( VP ( VP ( VBP are ) ( RB n't ) ( VP ( ADVP-MNR ( RB widely ) ) ( VBN traded ) ) ) ( CC and ) ( VP ( ADVP ( RB so ) ) ( VBP are ) ( ADJP-PRD ( ADJP ( JJR harder ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB buy ) ( CC and ) ( VB sell ) ( ADVP-MNR ( RB quickly ) ) ) ) ) ) ) ( PP ( IN than ) ( NP ( JJ blue ) ( NNS chips ) ) ) ) ) ) )

Also the smaller growth stocks are n't widely traded and so are harder to buy and sell quickly than blue chips


( S ( PP ( IN As ) ( NP ( DT a ) ( NN result ) ) ) ( NP-SBJ ( NP ( NP ( NNP Morgan ) ( NNP Stanley ) ( POS 's ) ) ( NN Index ) ) ( PP ( IN of ) ( NP ( NP ( CD 40 ) ( VBG Emerging ) ( NN Growth ) ( NNS Stocks ) ) ( PRN ( ADJP ( JJS most ) ( PP ( IN of ) ( SBAR-NOM ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBP are ) ( PP-LOC-PRD ( IN in ) ( NP ( DT the ) ( NNP OTC ) ( NN market ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ is ) ( ADVP-PRD ( RB up ) ( NP ( QP ( RB only ) ( CD 13 ) ) ( NN % ) ) ( PP-TMP ( IN for ) ( NP ( DT the ) ( NN year ) ) ) ) ( SBAR-TMP ( IN while ) ( S ( S ( NP-SBJ ( DT the ) ( NNP Dow ) ( NNP Jones ) ( NNP Industrial ) ( NNP Average ) ) ( VP ( VBZ has ) ( VP ( VBN leaped ) ( NP-EXT ( CD 24 ) ( NN % ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT the ) ( NNP S&P ) ( CD 500 ) ) ( VP ( VBZ has ) ( VP ( VBN grown ) ( NP-EXT ( CD 25 ) ( NN % ) ) ) ) ) ) ) ) )

As a result Morgan Stanley 's Index of 40 Emerging Growth Stocks most of which are in the OTC market is up only 13 % for the year while the Dow Jones Industrial Average has leaped 24 % and the S&P 500 has grown 25 %


( S ( S ( NP-SBJ ( DT The ) ( NNP Nasdaq ) ( NNP Composite ) ) ( VP ( VBZ has ) ( VP ( VBN gained ) ( NP-EXT ( CD 23 ) ( NN % ) ) ( NP-TMP ( DT this ) ( NN year ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( DT that ) ) ( VP ( VBZ 's ) ( ADJP-PRD ( RB largely ) ( JJ due ) ( PP ( TO to ) ( NP ( NP ( DT the ) ( CD 100 ) ( JJS largest ) ( JJ nonfinancial ) ( NNS stocks ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBP have ) ( VP ( VBN soared ) ( NP-EXT ( CD 30 ) ( NN % ) ) ) ) ) ) ) ) ) ) ) )

The Nasdaq Composite has gained 23 % this year but that 's largely due to the 100 largest nonfinancial stocks which have soared 30 %


( S ( NP-SBJ ( DT Some ) ( NNS investors ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ skeptical ) ( PP ( IN of ) ( NP ( NN growth ) ( NNS stocks ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( S-NOM-SBJ ( VP ( VBG investing ) ( PP-CLR ( IN in ) ( NP ( PRP them ) ) ) ) ) ( VP ( VBZ means ) ( S ( VP ( VBG ignoring ) ( NP ( NP ( DT that ) ( NN maxim ) ) ( VP ( VBN found ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( JJ fine ) ( NN print ) ) ( PP ( IN of ) ( NP ( DT some ) ( NN investment ) ( NNS advertisements ) ) ) ) ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( JJ past ) ( NN performance ) ) ( VP ( VBZ is ) ( RB n't ) ( ADJP-PRD ( JJ indicative ) ( PP ( IN of ) ( NP ( JJ future ) ( NNS results ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Some investors are skeptical of growth stocks because investing in them means ignoring that maxim found in the fine print of some investment advertisements that past performance is n't indicative of future results


( SINV ( S-TPC-1 ( NP-SBJ ( NNS People ) ) ( VP ( VBP are ) ( ADJP-PRD ( RB naturally ) ( JJ suspicious ) ( PP ( IN of ) ( NP ( PRP them ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Mullins ) ) ( PP ( IN of ) ( NP ( NNP Morgan ) ( NNP Stanley ) ) ) ) )

People are naturally suspicious of them says Mr. Mullins of Morgan Stanley


( SINV ( PP-TPC-1 ( IN Among ) ( NP ( NP ( PRP$ his ) ( NNS favorites ) ) ( PP ( IN in ) ( NP ( NP ( PRP$ his ) ( NN firm ) ( POS 's ) ) ( NN index ) ) ) ) ) ( VP ( VBP are ) ) ( NP-SBJ ( NP ( NNP Legent ) ) ( NP ( NNP Silicon ) ( NNPS Graphics ) ) ( CC and ) ( NP ( NNP Novell ) ) ) )

Among his favorites in his firm 's index are Legent Silicon Graphics and Novell


( S ( ADVP ( RB However ) ) ( NP-SBJ-1 ( JJR more ) ( NN money ) ( NNS managers ) ) ( VP ( VBP are ) ( VP ( VBN reassured ) ( SBAR ( DT that ) ( S ( NP-SBJ ( NN profit ) ) ( VP ( VBZ is ) ( VP ( VBG regaining ) ( NP ( NN importance ) ) ) ) ) ) ) ) )

However more money managers are reassured that profit is regaining importance


( S ( NP-SBJ ( NP ( NNP Mark ) ( NNP Schoeppner ) ) ( NP ( NP ( NN portfolio ) ( NN manager ) ) ( PP-LOC ( IN at ) ( NP ( JJ Pittsburgh-based ) ( NNP Quaker ) ( NNP Capital ) ( NNP Management ) ) ) ) ) ( VP ( VBZ says ) ( SBAR ( IN that ) ( S ( PP ( IN in ) ( NP ( NP ( NN reaction ) ) ( PP ( TO to ) ( NP ( NP ( NN nervousness ) ) ( PP ( IN about ) ( NP ( JJ debt-laden ) ( NN buy-out ) ( NNS transactions ) ) ) ) ) ) ) ( NP-SBJ-2 ( NNS analysts ) ( CC and ) ( NNS investors ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBP appear ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBG valuing ) ( NP ( NN stock ) ) ( PP-CLR ( VBN based ) ( PP ( IN on ) ( NP ( NP ( JJ future ) ( NNS earnings ) ) ( SBAR ( IN as ) ( S ( VP ( VBN opposed ) ( PP ( TO to ) ( NP ( NP ( DT the ) ( NN amount ) ) ( PP ( IN of ) ( NP ( NN debt ) ) ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( MD can ) ( VP ( VB support ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mark Schoeppner portfolio manager at Pittsburgh-based Quaker Capital Management says that in reaction to nervousness about debt-laden buy-out transactions analysts and investors now appear to be valuing stock based on future earnings as opposed to the amount of debt the company can support


( S ( NP-SBJ ( NP ( NNP Barney ) ( NNP Hallingby ) ) ( NP ( NP ( VBG managing ) ( NN director ) ) ( PP ( IN of ) ( NP ( NN research ) ) ) ( PP-LOC ( IN at ) ( NP ( NNP Hambrecht ) ( CC & ) ( NNP Quist ) ) ) ) ) ( ADVP ( RB also ) ) ( VP ( VBZ believes ) ( SBAR ( S ( NP-SBJ-1 ( NNS earnings ) ( NN growth ) ) ( VP ( VBZ is ) ( VP ( VBG beginning ) ( S ( VP ( TO to ) ( VP ( VB play ) ( NP ( NP ( DT a ) ( JJR greater ) ( NN part ) ) ( PP ( IN in ) ( NP ( NP ( NNS investors ) ( POS ' ) ) ( NN buying ) ( NNS decisions ) ) ) ) ) ) ) ) ) ) ) ) )

Barney Hallingby managing director of research at Hambrecht & Quist also believes earnings growth is beginning to play a greater part in investors ' buying decisions


( S ( PP-TMP ( IN On ) ( NP ( NNP Friday ) ) ) ( NP-SBJ ( NNP Hambrecht ) ( CC & ) ( NNP Quist ) ) ( VP ( VBD added ) ( NP ( NNP St. ) ( NNP Jude ) ( NNP Medical ) ) ( PP ( TO to ) ( NP ( NP ( DT the ) ( NN list ) ) ( PP ( IN of ) ( NP ( NP ( CD 20 ) ( NNS stocks ) ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( ADVP-MNR ( RB strongly ) ) ( VBZ recommends ) ) ) ) ) ) ) ) ) )

On Friday Hambrecht & Quist added St. Jude Medical to the list of 20 stocks it strongly recommends


( S ( S-TPC-1 ( NP-SBJ ( DT The ) ( NN opinion ) ) ( VP ( VBZ is ) ( ADVP ( RB largely ) ) ( VP ( VBN based ) ( PP-CLR ( IN on ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NN earnings ) ( NN momentum ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Hallingby ) ) ( VP ( VBZ says ) ) )

The opinion is largely based on the company 's earnings momentum Mr. Hallingby says


( S ( NP-SBJ ( NP ( NP ( NNP St. ) ( NNP Jude ) ( POS 's ) ) ( NN market ) ( NN value ) ) ( PP-LOC ( IN on ) ( NP ( NNP Nasdaq ) ) ) ) ( VP ( VBZ exceeds ) ( NP ( QP ( CD 1 ) ( CD billion ) ) ) ( SBAR-ADV ( CC so ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( RB n't ) ( NP-PRD ( DT a ) ( JJ small ) ( NN stock ) ) ) ) ) ) )

St. Jude 's market value on Nasdaq exceeds 1 billion so it is n't a small stock


( S ( NP-SBJ ( NP ( DT The ) ( JJ medical ) ( NNS devices ) ( NN maker ) ( POS 's ) ) ( NNS earnings ) ) ( VP ( VP ( VBD rose ) ( NP-EXT-1 ( RB nearly ) ( CD 35 ) ( NN % ) ) ( PP-TMP-2 ( IN in ) ( NP ( CD 1987 ) ) ) ( PP-TMP ( IN from ) ( NP ( CD 1986 ) ) ) ) ( CC and ) ( VP ( NP-EXT=1 ( CD 75 ) ( NN % ) ) ( PP-TMP=2 ( IN in ) ( NP ( CD 1988 ) ) ) ) ) )

The medical devices maker 's earnings rose nearly 35 % in 1987 from 1986 and 75 % in 1988


( S ( NP-SBJ ( NP ( NNP Kurt ) ( NNP Kruger ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ follows ) ( NP ( DT the ) ( NN stock ) ) ( PP ( IN for ) ( NP ( NNP Hambrecht ) ( CC & ) ( NNP Quist ) ) ) ) ) ) ) ( VP ( VBZ anticipates ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( JJ net ) ( NN income ) ) ( VP ( MD will ) ( VP ( VB grow ) ( NP-EXT ( CD 51 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( NP ( CD 2.15 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( NP-TMP ( DT this ) ( NN year ) ) ) ) ) ) ) )

Kurt Kruger who follows the stock for Hambrecht & Quist anticipates that the company 's net income will grow 51 % to 2.15 a share this year


( S ( NP-SBJ ( NNP St. ) ( NNP Jude ) ) ( VP ( VBD finished ) ( ADVP-CLR ( RB up ) ( NP ( CD 1\/4 ) ) ) ( PP ( TO to ) ( NP ( QP ( CD 44 ) ( CD 1\/2 ) ) ) ) ( PP-TMP ( IN on ) ( NP ( NNP Friday ) ) ) ) )

St. Jude finished up 1\/4 to 44 1\/2 on Friday


( NP-HLN ( NP ( NNP Friday ) ( POS 's ) ) ( NN Market ) ( NN Activity ) )

Friday 's Market Activity


( S ( NP-SBJ ( DT The ) ( NNP Nasdaq ) ( NN Composite ) ( NN Index ) ) ( VP ( VBN eased ) ( NP-EXT ( CD 0.13 ) ) ( PP-CLR ( TO to ) ( NP ( CD 470.67 ) ) ) ) )

The Nasdaq Composite Index eased 0.13 to 470.67


( S ( NP-SBJ ( DT The ) ( NN composite ) ) ( VP ( VBD finished ) ( ADVP-CLR ( RB up ) ( NP ( CD 0.7 ) ( NN % ) ) ) ( PP-TMP ( IN from ) ( NP ( NP ( JJ last ) ( NNP Friday ) ( POS 's ) ) ( NN close ) ) ) ) )

The composite finished up 0.7 % from last Friday 's close


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT a ) ( JJ busy ) ( NN week ) ) ( PP ( IN for ) ( NP ( NNP OTC ) ( NNS stocks ) ) ) ) ) )

It was a busy week for OTC stocks


( S ( S ( NP-SBJ ( NP ( NNP Friday ) ( POS 's ) ) ( NN volume ) ) ( VP ( VBD totaled ) ( NP ( QP ( CD 158.2 ) ( CD million ) ) ( NNS shares ) ) ) ) ( S ( NP-SBJ ( NP ( DT the ) ( JJ daily ) ( NN average ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN week ) ) ) ) ( VP ( VBD was ) ( NP-PRD ( DT a ) ( JJ bustling ) ( CD 176.7 ) ( CD million ) ) ) ) )

Friday 's volume totaled 158.2 million shares the daily average for the week was a bustling 176.7 million


( S ( NP-SBJ ( NNP Valley ) ( NNP National ) ) ( VP ( VBD lost ) ( NP-EXT ( QP ( CD 1 ) ( CD 3\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 17 ) ( CD 1\/8 ) ) ) ) ( PP ( IN on ) ( NP ( NP ( NN volume ) ) ( PP ( IN of ) ( NP ( QP ( CD 1.9 ) ( CD million ) ) ( NNS shares ) ) ) ) ) ) )

Valley National lost 1 3\/8 to 17 1\/8 on volume of 1.9 million shares


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD reported ) ( NP ( DT a ) ( JJ big ) ( JJ third-quarter ) ( NN loss ) ) ( PP-TMP ( IN on ) ( NP ( NNP Thursday ) ) ) ) )

The company reported a big third-quarter loss on Thursday


( S ( NP-SBJ-1 ( NP ( NNPS Merchants ) ( NNP Bank ) ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP York ) ) ) ) ( VP ( VBD lost ) ( NP-EXT ( CD 1 ) ) ( PP-DIR ( TO to ) ( NP ( CD 106 ) ) ) ( PP-TMP ( IN after ) ( S-NOM ( VP ( VBG reporting ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP$ its ) ( JJ third-quarter ) ( JJ net ) ( NN income ) ) ( VP ( VBD fell ) ( PP-DIR ( TO to ) ( NP ( NP ( CD 1.62 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( PP ( IN from ) ( NP ( NP ( NP ( JJ last ) ( NN year ) ( POS 's ) ) ( CD 1.67 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) ) ) ) ) )

Merchants Bank of New York lost 1 to 106 after reporting that its third-quarter net income fell to 1.62 a share from last year 's 1.67 a share


( S ( NP-SBJ-1 ( NNP Eliot ) ( NNPS Savings ) ( NNP Bank ) ) ( VP ( VBD lost ) ( NP-EXT ( CD 7\/8 ) ) ( PP ( TO to ) ( NP ( QP ( CD 1 ) ( CD 5\/8 ) ) ) ) ( PP ( IN after ) ( S-NOM ( VP ( VBG reporting ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD had ) ( NP ( DT a ) ( ADJP ( QP ( CD 4.8 ) ( CD million ) ) ) ( NN loss ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJS latest ) ( JJ third ) ( NN quarter ) ) ) ( PP-PRP ( ADVP ( RB mostly ) ) ( IN because ) ( IN of ) ( NP ( JJ loan-loss ) ( NNS provisions ) ) ) ) ) ) ) ) ) ) )

Eliot Savings Bank lost 7\/8 to 1 5\/8 after reporting that it had a 4.8 million loss in the latest third quarter mostly because of loan-loss provisions


( S ( PP-TMP ( IN In ) ( NP ( DT the ) ( CD 1988 ) ( NN quarter ) ) ) ( NP-SBJ ( DT the ) ( NN bank ) ) ( VP ( VBD earned ) ( NP ( QP ( CD 1.1 ) ( CD million ) ) ) ) )

In the 1988 quarter the bank earned 1.1 million


( S ( NP-SBJ ( CD One ) ( NN bank ) ( NN stock ) ) ( VP ( VBD was ) ( NP-PRD ( DT a ) ( NN winner ) ) ) )

One bank stock was a winner


( S ( NP-SBJ-2 ( NNP BanPonce ) ) ( VP ( VBD jumped ) ( NP-EXT ( QP ( CD 4 ) ( CD 1\/2 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 47 ) ( CD 3\/4 ) ) ) ) ( PP-TMP ( IN after ) ( S-NOM ( VP ( VBG agreeing ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN acquired ) ( PP ( IN by ) ( NP-LGS ( NNP Banco ) ( NNP Popular ) ( FW de ) ( NNP Puerto ) ( NNP Rico ) ) ) ( PP-CLR ( IN for ) ( NP ( NP ( CD 56.25 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) ) ) ) ) ) )

BanPonce jumped 4 1\/2 to 47 3\/4 after agreeing to be acquired by Banco Popular de Puerto Rico for 56.25 a share


( S ( NP-SBJ ( NNP Banco ) ( NNP Popular ) ) ( ADVP ( RB meanwhile ) ) ( VP ( VBD dropped ) ( NP-EXT ( QP ( CD 1 ) ( CD 1\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 21 ) ( CD 1\/2 ) ) ) ) ) )

Banco Popular meanwhile dropped 1 1\/4 to 21 1\/2


( S ( NP-SBJ ( NP ( NNP Sierra ) ( NNP Tucson ) ) ( NP ( DT an ) ( JJ initial ) ( NN public ) ( NN offering ) ) ) ( VP ( VBD made ) ( NP ( DT the ) ( RBS most ) ( JJ active ) ( NN list ) ) ) )

Sierra Tucson an initial public offering made the most active list


( S ( NP-SBJ-1 ( NP ( DT The ) ( NN company ) ( POS 's ) ) ( NNS shares ) ) ( VP ( VP ( VBD began ) ( S ( VP ( NN trading ) ( PP-CLR ( IN at ) ( NP ( NP ( QP ( CD 12 ) ( CD 1\/2 ) ) ) ( ADVP ( IN up ) ( PP ( IN from ) ( NP ( NP ( PRP$ its ) ( JJ initial ) ( NN offering ) ( NN price ) ) ( PP ( IN of ) ( NP ( CD 12 ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBD closed ) ( PP-CLR ( IN at ) ( NP ( CD 13 ) ) ) ) ) )

The company 's shares began trading at 12 1\/2 up from its initial offering price of 12 and closed at 13


( S ( NP-SBJ ( NNP Sierra ) ( NNP Tucson ) ) ( VP ( VBZ operates ) ( NP ( DT an ) ( NN addiction ) ( NN treatment ) ( NN center ) ) ) )

Sierra Tucson operates an addiction treatment center


( S ( PP ( IN Among ) ( NP ( VBG declining ) ( NNS issues ) ) ) ( NP-SBJ ( DT a ) ( JJ weak ) ( NNS earnings ) ( NN outlook ) ) ( VP ( VBD drove ) ( S ( NP-SBJ ( NNP Groundwater ) ( NNP Technology ) ) ( ADVP-PRD ( RB down ) ( NP ( QP ( CD 6 ) ( CD 1\/4 ) ) ) ) ( PP-DIR ( TO to ) ( NP ( CD 24 ) ) ) ) ) )

Among declining issues a weak earnings outlook drove Groundwater Technology down 6 1\/4 to 24


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( NNS results ) ) ( PP ( IN for ) ( NP ( NP ( PRP$ its ) ( JJ second ) ( NN quarter ) ) ( VP ( VBN ended ) ( NP-TMP-CLR ( NNP Oct. ) ( CD 28 ) ) ) ) ) ) ( VP ( MD could ) ( VP ( VB drop ) ( NP ( NP ( RB as ) ( JJ much ) ) ( PP ( IN as ) ( NP ( NP ( CD 20 ) ( NN % ) ) ( PP ( IN below ) ( NP ( NP ( NP ( DT the ) ( CD 30 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ( VP ( VBN reported ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ year-earlier ) ( NN quarter ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The company said results for its second quarter ended Oct. 28 could drop as much as 20 % below the 30 cents a share reported in the year-earlier quarter


( S ( NP-SBJ ( NNP Medstone ) ( NNP International ) ) ( VP ( VBD plummeted ) ( NP-EXT ( QP ( CD 3 ) ( CD 1\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 7 ) ) ( CD 1\/4 ) ) ) ) )

Medstone International plummeted 3 1\/4 to 7 1\/4


( S ( NP-SBJ ( DT A ) ( NNP Food ) ( CC and ) ( NNP Drug ) ( NNP Administration ) ( JJ advisory ) ( NN panel ) ) ( VP ( VBZ has ) ( VP ( VBN asked ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP Medstone ) ) ( VP ( VB perform ) ( NP ( NP ( JJR more ) ( NNS studies ) ) ( PP ( IN on ) ( NP ( NP ( PRP$ its ) ( NN device ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB treat ) ( NP ( NNS gallstones ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

A Food and Drug Administration advisory panel has asked that Medstone perform more studies on its device to treat gallstones


( S ( NP-SBJ-1 ( NNP Qintex ) ( NNP Entertainment ) ) ( VP ( VBD dropped ) ( NP-EXT ( QP ( CD 2 ) ) ( CD 5\/8 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 1 ) ( CD 1\/2 ) ) ) ) ( PP-TMP ( IN after ) ( S-NOM ( VP ( VBG seeking ) ( NP ( NP ( NN protection ) ) ( PP ( IN from ) ( NP ( NN creditor ) ( NNS lawsuits ) ) ) ( PP-LOC ( IN under ) ( NP ( NP ( NN Chapter ) ( CD 11 ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ federal ) ( NNP Bankruptcy ) ( NNP Code ) ) ) ) ) ( PP ( IN for ) ( NP ( NP ( PRP itself ) ) ( CC and ) ( NP ( NP ( PRP$ its ) ( CD two ) ( NN operating ) ( NNS subsidiaries ) ) ( NP ( NP ( NNP Hal ) ( NNP Roach ) ( NNPS Studios ) ) ( CC and ) ( NP ( NNP Qintex ) ( NNPS Productions ) ) ) ) ) ) ) ) ) ) ) )

Qintex Entertainment dropped 2 5\/8 to 1 1\/2 after seeking protection from creditor lawsuits under Chapter 11 of the federal Bankruptcy Code for itself and its two operating subsidiaries Hal Roach Studios and Qintex Productions


( S ( NP-SBJ ( NNP Raymond ) ( NNP Corp. ) ) ( VP ( VBD lost ) ( NP-EXT ( CD 1 ) ) ( PP-DIR ( TO to ) ( NP ( CD 10 ) ) ) ( SBAR-TMP ( IN after ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD said ) ( NP-TMP ( JJ late ) ( NNP Thursday ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB take ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 4.4 ) ( CD million ) ) ) ( NN charge ) ) ( PP-TMP ( IN in ) ( NP ( PRP$ its ) ( JJ third ) ( NN quarter ) ) ) ( PP ( IN for ) ( NP ( NP ( NNS reserves ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB cover ) ( NP ( NP ( JJ potential ) ( NNS charges ) ) ( PP ( IN in ) ( NP ( NP ( NN connection ) ) ( PP ( IN with ) ( NP ( NP ( DT the ) ( NN closing ) ( CC and ) ( NN sale ) ) ( PP ( IN of ) ( NP ( DT a ) ( VBG manufacturing ) ( NN plant ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Raymond Corp. lost 1 to 10 after it said late Thursday that it will take a 4.4 million charge in its third quarter for reserves to cover potential charges in connection with the closing and sale of a manufacturing plant


( S ( PP ( IN As ) ( NP ( DT a ) ( NN result ) ) ) ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBZ has ) ( VP ( VBN suspended ) ( NP ( PRP$ its ) ( JJ quarterly ) ( NN dividend ) ) ) ) )

As a result the company has suspended its quarterly dividend


( S ( NP-SBJ ( NP ( NNP McCaw ) ( NNP Cellular ) ( NNPS Communications ) ) ( CC and ) ( NP ( NP ( PRP$ its ) ( NN target ) ) ( NP ( NNP LIN ) ( NNP Broadcasting ) ) ) ) ( VP ( VBD were ) ( ADJP-PRD ( JJ active ) ) ) )

McCaw Cellular Communications and its target LIN Broadcasting were active


( S ( S ( NP-SBJ ( NNP LIN ) ) ( VP ( VBD added ) ( NP-EXT ( CD 5\/8 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 110 ) ) ( CD 5\/8 ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNP McCaw ) ) ( VP ( VBD lost ) ( NP-EXT ( CD 1\/4 ) ) ( PP-DIR ( TO to ) ( NP ( CD 41 ) ) ) ) ) )

LIN added 5\/8 to 110 5\/8 and McCaw lost 1\/4 to 41


( S ( NP-SBJ ( NNP McCaw ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ has ) ( VP ( VBN secured ) ( NP ( NNS commitments ) ) ( PP ( IN from ) ( NP ( CD three ) ( NNS banks ) ) ) ( S-1 ( VP ( TO to ) ( VP ( VB help ) ( S ( VP ( VB finance ) ( NP ( NP ( PRP$ its ) ( ADJP ( JJ 125-a-share ) ) ( NN bid ) ) ( PP ( IN for ) ( NP ( NP ( CD 22 ) ( CD million ) ) ( PP ( IN of ) ( NP ( NP ( NNP Lin ) ( POS 's ) ) ( NNS shares ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

McCaw said it has secured commitments from three banks to help finance its 125-a-share bid for 22 million of Lin 's shares


( S ( NP-SBJ ( NNP McCaw ) ) ( VP ( VBZ has ) ( VP ( VBN called ) ( PP-CLR ( IN for ) ( NP ( NP ( DT a ) ( JJ fair ) ( NN auction ) ) ( PP ( IN of ) ( NP ( NP ( NNP LIN ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( ADVP-TMP ( RB earlier ) ) ( VBD entered ) ( NP ( NP ( DT a ) ( JJ stock-swap ) ( NN merger ) ( NN pact ) ) ( PP ( IN with ) ( NP ( NNP BellSouth ) ) ) ) ) ) ) ) ) ) ) ) ) )

McCaw has called for a fair auction of LIN which earlier entered a stock-swap merger pact with BellSouth


( S ( PP-TMP ( VBG Following ) ( NP ( NP ( DT the ) ( NN release ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( JJ fourth-quarter ) ( NNS earnings ) ) ) ) ) ( NP-SBJ ( NNP Apple ) ( NNP Computer ) ) ( VP ( VBD dropped ) ( NP-EXT ( CD 3\/4 ) ) ( PP-DIR ( TO to ) ( NP ( CD 48 ) ) ) ( PP ( IN on ) ( NP ( NP ( NN volume ) ) ( PP ( IN of ) ( NP ( QP ( JJR more ) ( IN than ) ( CD 2.3 ) ( CD million ) ) ( NNS shares ) ) ) ) ) ) )

Following the release of the company 's fourth-quarter earnings Apple Computer dropped 3\/4 to 48 on volume of more than 2.3 million shares


( S ( NP-SBJ ( NNP Apple ) ) ( VP ( VBD earned ) ( NP ( NP ( QP ( CD 161.1 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 1.24 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN quarter ) ) ) ( PP ( VBG including ) ( NP ( NP ( QP ( CD 48 ) ( CD million ) ) ) ( PP ( IN from ) ( NP ( NP ( DT the ) ( NN sale ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NNP Adobe ) ( NNPS Systems ) ( NN stock ) ) ) ) ) ) ) ) )

Apple earned 161.1 million or 1.24 a share in the quarter including 48 million from the sale of its Adobe Systems stock


( S ( NP-SBJ ( NN Growth ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ good ) ) ) )

Growth is good


( S ( ADVP ( IN At ) ( JJS least ) ) ( NP-SBJ ( DT that ) ) ( VP ( VBZ 's ) ( NP-PRD ( NP ( DT a ) ( NN theme ) ) ( VP ( VBG emerging ) ( PP-LOC ( IN among ) ( NP ( NP ( JJ many ) ( NN money ) ( NNS managers ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBP are ) ( ADJP-PRD ( JJ anxious ) ( S ( DT both ) ( VP ( TO to ) ( VP ( VP ( VB preserve ) ( NP ( NP ( DT the ) ( JJ handsome ) ( NN stock-market ) ( NNS gains ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP have ) ( ADVP-TMP ( RB already ) ) ( VP ( VBN achieved ) ( NP-TMP ( DT this ) ( NN year ) ) ) ) ) ) ) ) ( CC and ) ( VP ( TO to ) ( VP ( VB catch ) ( NP ( NP ( DT the ) ( JJ next ) ( NN wave ) ) ( PP ( IN of ) ( NP ( JJ above-average ) ( NNS performers ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

At least that 's a theme emerging among many money managers who are anxious both to preserve the handsome stock-market gains they have already achieved this year and to catch the next wave of above-average performers


( S ( NP-SBJ-1 ( PRP They ) ) ( VP ( VBP are ) ( VP ( VBG starting ) ( S ( VP ( TO to ) ( VP ( VB buy ) ( NP ( NN growth ) ( NNS stocks ) ) ) ) ) ) ) )

They are starting to buy growth stocks


( SQ ( VP ( VB Remember ) ( NP ( PRP them ) ) ) )

Remember them


( S ( NP-SBJ ( NP ( DT The ) ( JJ upper ) ( NN echelon ) ) ( PP ( IN of ) ( NP ( DT this ) ( NN group ) ) ) ) ( VP ( VBD were ) ( NP-PRD ( NP ( NNS shares ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ nifty ) ( CD 50 ) ( NNS companies ) ) ( SBAR ( WHNP-1 ( NP ( WP$ whose ) ( NNS profits ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS 1960s ) ) ( CC and ) ( NP ( RB early ) ( NNS 1970s ) ) ) ) ) ( S ( VP ( VBD grew ) ( ADVP-MNR ( RB steadily ) ) ( ADVP-MNR ( IN if ) ( RB not ) ( RB spectacularly ) ) ( PP ( IN through ) ( ADJP ( JJ thick ) ( CC and ) ( JJ thin ) ) ) ) ) ) ) ) ) ) )

The upper echelon of this group were shares of the nifty 50 companies whose profits of the 1960s and early 1970s grew steadily if not spectacularly through thick and thin


( S ( NP-SBJ-2 ( NP ( DT That ) ( NN sort ) ) ( PP ( IN of ) ( NP ( NN workhorse ) ( NN performance ) ) ) ) ( VP ( VBZ sounds ) ( S ( VP ( VBN made ) ( S ( VP ( TO to ) ( VP ( VB order ) ( PP ( IN for ) ( NP-TMP ( NP ( DT a ) ( NN time ) ) ( SBAR ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( JJ corporate ) ( NNS profits ) ) ( ADVP ( RB overall ) ) ( VP ( VB have ) ( VP ( VBN been ) ( VP ( VBG weakening ) ( PP-CLR ( IN from ) ( NP ( NP ( DT the ) ( JJ brisk ) ( NNS increases ) ) ( PP ( IN of ) ( NP ( JJ recent ) ( NNS years ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

That sort of workhorse performance sounds made to order for a time when corporate profits overall have been weakening from the brisk increases of recent years


( S ( NP-SBJ ( NP ( DT The ) ( JJ current ) ( NN flood ) ) ( PP ( IN of ) ( NP ( NN third-quarter ) ( NNS reports ) ) ) ) ( VP ( VBP are ) ( VP ( VBG producing ) ( NP ( NP ( ADJP ( RB many ) ( JJR more ) ) ( JJ negative ) ( NNS surprises ) ) ( PP ( IN than ) ( NP ( JJ positive ) ( NNS ones ) ) ) ) ) ) )

The current flood of third-quarter reports are producing many more negative surprises than positive ones


( S ( S ( NP-SBJ ( DT Those ) ) ( VP ( VBP are ) ( NP-PRD ( JJ unwelcome ) ( NNS trends ) ) ( PP-TMP ( IN in ) ( NP ( NP ( DT a ) ( NN year ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( NP-SBJ ( DT the ) ( NNP Dow ) ( NNP Jones ) ( NNP Industrial ) ( NNP Average ) ) ( VP ( VBZ has ) ( VP ( VBN risen ) ( NP-EXT ( CD 23 ) ( NN % ) ) ( ADVP-TMP ( RB so ) ( RB far ) ) ( PP ( RB even ) ( IN with ) ( NP ( NP ( DT the ) ( JJ 190.58-point ) ( NN plunge ) ) ( PP-TMP ( IN on ) ( NP ( NNP Oct. ) ( CD 13 ) ) ) ) ) ) ) ) ) ) ) ) ) ( S ( NP-SBJ ( JJR broader ) ( NN market ) ( NNS measures ) ) ( VP ( VBP are ) ( PP-PRD ( IN in ) ( NP ( DT the ) ( JJ same ) ( NN neighborhood ) ) ) ) ) )

Those are unwelcome trends in a year that the Dow Jones Industrial Average has risen 23 % so far even with the 190.58-point plunge on Oct. 13 broader market measures are in the same neighborhood


( S ( NP-SBJ ( NP ( DT The ) ( NN question ) ) ( PP ( IN for ) ( NP ( NNS investors ) ) ) ) ( VP ( VBZ is ) ( SBAR-PRD ( WHADVP-1 ( WRB how ) ) ( S ( VP ( TO to ) ( VP ( VP ( VB protect ) ( NP ( DT these ) ( NNS returns ) ) ) ( CC and ) ( VP ( ADVP ( RB yet ) ) ( VB reach ) ( NP ( NP ( DT a ) ( RB little ) ) ( PP ( IN for ) ( NP ( JJ additional ) ( NNS gains ) ) ) ) ) ) ) ) ) ) )

The question for investors is how to protect these returns and yet reach a little for additional gains


( S ( NP-SBJ ( DT That ) ) ( VP ( VBZ 's ) ( NP-PRD ( NP ( DT the ) ( NN path ) ) ( PP ( IN of ) ( NP ( NN reasoning ) ) ) ( VP ( VBG leading ) ( PP-CLR ( TO to ) ( NP ( NN growth ) ( NNS stocks ) ) ) ) ) ) )

That 's the path of reasoning leading to growth stocks


( SINV ( S-TPC-2 ( NP-SBJ ( PRP I ) ) ( VP ( VBP think ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( JJ good ) ( NN theme ) ) ( WHPP ( IN for ) ( SBAR ( WHNP-1 ( WP what ) ) ( S ( VP ( VBZ looks ) ( S ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( DT an ) ( JJ uncertain ) ( NN market ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Steven ) ( NNP Einhorn ) ) ( NP ( NP ( NN partner ) ) ( PP-LOC ( IN at ) ( NP ( NNP Goldman ) ( NNP Sachs ) ) ) ) ) )

I think it is a good theme for what looks to be an uncertain market says Steven Einhorn partner at Goldman Sachs


( S ( S-TPC-1 ( S ( NP-SBJ ( NN Growth ) ( NNS stocks ) ) ( VP ( MD may ) ( VP ( VB be ) ( ADJP-PRD ( ADJP ( ADJP ( RB as ) ( JJ big ) ) ( PP ( IN as ) ( NP ( NNP Philip ) ( NNP Morris ) ) ) ) ( CC or ) ( ADJP ( ADJP ( JJ medium-sized ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NNP Circuit ) ( NNP City ) ( NNPS Stores ) ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP$ their ) ( JJ common ) ( NN characteristic ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( NN history ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG increasing ) ( NP ( NNS profits ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( NN order ) ) ( PP ( IN of ) ( NP ( NP ( QP ( IN at ) ( JJS least ) ( CD 15 ) ( NN % ) ( TO to ) ( CD 20 ) ( NN % ) ) ) ( NP-ADV ( DT a ) ( NN year ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NN money ) ( NNS managers ) ) ( VP ( VBP say ) ) )

Growth stocks may be as big as Philip Morris or medium-sized such as Circuit City Stores but their common characteristic is a history of increasing profits on the order of at least 15 % to 20 % a year money managers say


( SINV ( S-TPC-3 ( NP-SBJ ( NP ( DT The ) ( NN period ) ) ( SBAR ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( NN growth ) ( NNS stocks ) ) ( VP ( MD should ) ( VP ( VB be ) ( VP ( VBG performing ) ( ADVP-MNR ( RB well ) ) ) ) ) ) ) ) ( VP ( VBZ is ) ( SBAR-PRD ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ ( PRP$ their ) ( NNS earnings ) ) ( VP ( VBP are ) ( VP ( VBG growing ) ( PP-MNR ( IN at ) ( NP ( NP ( DT a ) ( JJ superior ) ( NN rate ) ) ( PP ( TO to ) ( NP ( NP ( DT the ) ( JJ general ) ( NN level ) ) ( PP ( IN of ) ( NP ( JJ corporate ) ( NNS profits ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Stephen ) ( NNP Boesel ) ) ( NP ( NP ( NN president ) ) ( PP ( IN of ) ( NP ( NP ( NNP T. ) ( NNP Rowe ) ( NNP Price ) ( POS 's ) ) ( NNP Growth ) ( CC and ) ( NNP Income ) ( NNP Fund ) ) ) ) ) )

The period when growth stocks should be performing well is when their earnings are growing at a superior rate to the general level of corporate profits says Stephen Boesel president of T. Rowe Price 's Growth and Income Fund


( S ( NP-SBJ ( NN Growth ) ( NNS stocks ) ) ( ADVP ( RB also ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ attractive ) ) ( PP-TMP ( IN in ) ( NP ( NP ( NNS periods ) ) ( PP ( IN of ) ( NP ( NN market ) ( NN volatility ) ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( NP-SBJ ( JJ many ) ( NNS investors ) ( CC and ) ( NNS analysts ) ) ( VP ( VBP expect ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NNS weeks ) ( RB ahead ) ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ-2 ( NN everybody ) ) ( VP ( VBZ tries ) ( S ( VP ( TO to ) ( VP ( VB discern ) ( SBAR ( WHADVP-3 ( WRB where ) ) ( S ( NP-SBJ ( DT the ) ( NN economy ) ) ( VP ( VBZ is ) ( VP ( VBG heading ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Growth stocks also are attractive in periods of market volatility which many investors and analysts expect in the weeks ahead as everybody tries to discern where the economy is heading


( S ( NP-SBJ ( NP ( DT This ) ( NN kind ) ) ( PP ( IN of ) ( NP ( JJ jumpy ) ( NN uncertainty ) ) ) ) ( VP ( VBZ reminds ) ( NP ( NP ( NNP John ) ( NNP Calverley ) ) ( NP ( NP ( JJ senior ) ( NN economist ) ) ( PP ( IN for ) ( NP ( NNP American ) ( NNP Express ) ( NNP Bank ) ) ) ) ) ( PP-CLR ( IN of ) ( NP ( NP ( DT the ) ( CD 1969-72 ) ( NN period ) ) ( SBAR ( WHADVP-1 ( WRB when ) ) ( S ( S ( NP-SBJ ( DT the ) ( JJ industrial ) ( NN average ) ) ( VP ( VBD rolled ) ( PP-LOC-CLR ( IN through ) ( NP ( JJ huge ) ( NNS ranges ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNS investors ) ) ( VP ( VBD flocked ) ( PP-DIR ( TO to ) ( NP ( NP ( DT the ) ( NNS shares ) ) ( PP ( IN of ) ( NP ( NP ( NNS companies ) ) ( PP ( IN with ) ( NP ( JJ proven ) ( NNS earnings ) ( NNS records ) ) ) ( SBAR ( WHNP-73 ( WDT which ) ) ( S ( VP ( VBD became ) ( ADJP-PRD ( JJ known ) ( PP ( IN as ) ( NP ( DT the ) ( JJ nifty ) ( CD 50 ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

This kind of jumpy uncertainty reminds John Calverley senior economist for American Express Bank of the 1969-72 period when the industrial average rolled through huge ranges and investors flocked to the shares of companies with proven earnings records which became known as the nifty 50


( SINV ( S-TPC-1 ( CC And ) ( NP-SBJ ( PRP they ) ) ( VP ( MD will ) ( ADVP-TMP ( RB again ) ) ) ) ( VP ( VBP say ) ) ( NP-SBJ ( NP ( NN money-manager ) ( NNS proponents ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ growth-stock ) ( NN theme ) ) ) ) )

And they will again say money-manager proponents of the growth-stock theme


( S ( NP-SBJ ( NP ( NNP Cabanne ) ( NNP Smith ) ) ( NP ( NP ( NN president ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NN money ) ( NN management ) ( NN company ) ) ( VP ( VBG bearing ) ( NP ( PRP$ his ) ( NN name ) ) ) ) ) ) ) ( VP ( VBZ predicts ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NN investment ) ( NNS companies ) ) ( VP ( VBG using ) ( NP-1 ( NNS computers ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB identify ) ( NP ( NP ( NNS companies ) ) ( PP ( IN with ) ( NP ( NNS earnings ) ( NN momentum ) ) ) ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB climb ) ( PP-LOC-CLR ( IN on ) ( NP ( DT the ) ( NN growth-stock ) ( NN bandwagon ) ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( DT the ) ( JJ overall ) ( JJ corporate ) ( NNS earnings ) ( NN outlook ) ) ( VP ( VBZ deteriorates ) ( ADVP ( RBR further ) ) ) ) ) ) ) ) ) ) )

Cabanne Smith president of a money management company bearing his name predicts that investment companies using computers to identify companies with earnings momentum will climb on the growth-stock bandwagon as the overall corporate earnings outlook deteriorates further


( S ( NP-SBJ ( PRP He ) ) ( ADVP ( RB also ) ) ( VP ( VBZ thinks ) ( SBAR ( S ( NP-SBJ ( NP ( JJ foreign ) ( NNS investors ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBP are ) ( VP ( VBG showing ) ( NP ( NP ( NNS signs ) ) ( PP ( IN of ) ( NP ( RBR more ) ( JJ discriminate ) ( NN investing ) ) ) ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VP ( VB join ) ( NP ( DT the ) ( NN pursuit ) ) ) ( CC and ) ( VP ( VB pump ) ( PRT ( RP up ) ) ( NP ( NNS prices ) ) ) ) ) ) ) ) )

He also thinks foreign investors who are showing signs of more discriminate investing will join the pursuit and pump up prices


( S ( S-TPC-1 ( NP-SBJ ( PRP We ) ) ( VP ( VBP 're ) ( VP ( ADVP ( RB just ) ) ( VBG seeing ) ( NP ( NP ( DT the ) ( NN beginning ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN shift ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Smith ) ) ( VP ( VBZ says ) ) )

We 're just seeing the beginning of a shift Mr. Smith says


( S ( NP-SBJ ( NNP Mr. ) ( NNP Smith ) ) ( VP ( VBZ recommends ) ( NP ( NP ( NNP Cypress ) ( NNP Semiconductor ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ is ) ( ADVP-TMP ( RB currently ) ) ( VP ( VBG showing ) ( NP ( DT a ) ( JJ robust ) ( ADJP ( CD 63 ) ( NN % ) ) ( NNS earnings ) ( NN growth ) ( NN rate ) ) ) ) ) ) ) ) )

Mr. Smith recommends Cypress Semiconductor that is currently showing a robust 63 % earnings growth rate


( S ( NP-SBJ ( NP ( NNP Ronald ) ( NNP Sloan ) ) ( NP ( NP ( NN executive ) ( NN vice ) ( NN president ) ) ( PP ( IN of ) ( NP ( NNP Siebel ) ( NNP Capital ) ( NNP Management ) ) ) ) ) ( VP ( VBZ likes ) ( NP ( NP ( NNP Wellman ) ( NNP Inc. ) ) ( NP ( NP ( DT a ) ( NN company ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ recycles ) ( NP ( NN plastic ) ) ( PP-CLR ( IN into ) ( NP ( NP ( NN synthetic ) ( NNS fibers ) ) ( PP ( IN for ) ( NP ( NN carpeting ) ) ) ) ) ) ) ) ) ) ) )

Ronald Sloan executive vice president of Siebel Capital Management likes Wellman Inc. a company that recycles plastic into synthetic fibers for carpeting


( S ( NP-SBJ ( NNP Mr. ) ( NNP Sloan ) ) ( VP ( VP ( VBZ praises ) ( NP ( DT the ) ( NN company ) ) ( PP-CLR ( IN as ) ( ADJP ( NN recession ) ( NN resistant ) ) ) ) ( CC and ) ( VP ( NNS notes ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ has ) ( NP ( NP ( DT an ) ( JJ annual ) ( NNS earnings ) ( NN growth ) ( NN rate ) ) ( PP ( IN of ) ( NP ( NP ( CD 32 ) ( NN % ) ) ( NP-ADV ( DT a ) ( NN year ) ) ) ) ) ( PP-TMP ( IN over ) ( NP ( DT the ) ( JJ past ) ( CD five ) ( NNS years ) ) ) ) ) ) ) ) )

Mr. Sloan praises the company as recession resistant and notes that it has an annual earnings growth rate of 32 % a year over the past five years


( S ( S ( NP-SBJ ( NNP Wellman ) ( NN stock ) ) ( VP ( VBN closed ) ( NP-TMP-CLR ( NNP Friday ) ) ( PP-CLR ( IN at ) ( NP ( QP ( CD 39 ) ( CD 3\/8 ) ) ) ) ( ADVP ( RB up ) ( NP ( CD 1\/8 ) ) ) ) ) ( S ( NP-SBJ ( NNP Mr. ) ( NNP Sloan ) ) ( VP ( VBZ thinks ) ( SBAR ( IN that ) ( S ( PP-TMP ( IN in ) ( NP ( DT a ) ( NN year ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( MD could ) ( VP ( VB hit ) ( NP ( CD 60 ) ) ) ) ) ) ) ) )

Wellman stock closed Friday at 39 3\/8 up 1\/8 Mr. Sloan thinks that in a year it could hit 60


( S ( NP-SBJ ( NNS Others ) ) ( VP ( VBP preach ) ( NP ( NP ( DT the ) ( NN gospel ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG buying ) ( NP ( JJ only ) ( JJ blue-chip ) ( NN growth ) ( NNS stocks ) ) ) ) ) ) ) )

Others preach the gospel of buying only blue-chip growth stocks


( S ( NP-SBJ ( NP ( NNP Carmine ) ( NNP Grigoli ) ) ( NP ( NP ( JJ chief ) ( NN market ) ( NN strategist ) ) ( PP ( IN for ) ( NP ( NNP First ) ( NNP Boston ) ) ) ) ( SBAR ( WHNP-1991 ( WP who ) ) ( S ( ADVP ( RB still ) ) ( VP ( VBZ says ) ( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP expect ) ( S ( NP-SBJ ( DT the ) ( NNP Dow ) ( NN average ) ) ( VP ( TO to ) ( VP ( VB be ) ( PP-PRD ( IN at ) ( NP ( CD 3000 ) ) ) ( PP-TMP ( IN by ) ( NP ( NN mid-1990 ) ) ) ) ) ) ) ) ) ) ) ) ( ADVP ( RB nonetheless ) ) ( VP ( VBZ foresees ) ( NP ( DT a ) ( JJ sluggish ) ( NN economy ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN meantime ) ) ) ) )

Carmine Grigoli chief market strategist for First Boston who still says We expect the Dow average to be at 3000 by mid-1990 nonetheless foresees a sluggish economy in the meantime


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ recommends ) ( NP ( NP ( JJ such ) ( JJ blue-chip ) ( NN growth ) ( NNS stalwarts ) ) ( PP ( IN as ) ( NP ( NP ( NNP Philip ) ( NNP Morris ) ) ( NP ( NNP PepsiCo ) ) ( NP ( NNP CPC ) ( NNP International ) ) ( NP ( NNP Reebok ) ( NNP International ) ) ( CC and ) ( NP ( NNP Limited ) ( NNP Inc ) ) ) ) ) ) )

He recommends such blue-chip growth stalwarts as Philip Morris PepsiCo CPC International Reebok International and Limited Inc


( S ( NP-SBJ ( DT All ) ) ( VP ( VBP have ) ( NP ( NP ( DT a ) ( JJ fiveyear ) ( NNS earnings ) ( NN growth ) ( NN rate ) ) ( PP ( IN of ) ( NP ( NP ( QP ( JJR more ) ( IN than ) ( CD 20 ) ) ( NN % ) ) ( NP-ADV ( DT a ) ( NN year ) ) ) ) ) ) )

All have a fiveyear earnings growth rate of more than 20 % a year


( S ( NP-SBJ ( DT Some ) ( NN money ) ( NNS managers ) ) ( VP ( VBP are ) ( VP ( VBG pursuing ) ( NP ( NN growth ) ( NNS stocks ) ) ( PP ( IN at ) ( NP ( NP ( DT the ) ( NN expense ) ) ( PP ( IN of ) ( NP ( NP ( DT those ) ) ( SBAR ( WHNP-1991 ( WDT that ) ) ( S ( VP ( VBP rise ) ( CC and ) ( VBP fall ) ( PP ( IN along ) ( PP ( IN with ) ( NP ( DT the ) ( JJ economic ) ( NN cycle ) ) ) ) ) ) ) ) ) ) ) ) ) )

Some money managers are pursuing growth stocks at the expense of those that rise and fall along with the economic cycle


( SINV ( S-1 ( NP-SBJ ( NP ( CD One ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS stories ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ fourth ) ( NN quarter ) ) ) ) ) ) ( VP ( VBZ is ) ( SBAR-PRD ( IN that ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( MD will ) ( VP ( VB get ) ( NP ( NP ( DT an ) ( JJ unusual ) ( NN number ) ) ( PP ( IN of ) ( NP ( NNS earnings ) ( NNS disappointments ) ) ) ) ( PP ( IN from ) ( NP ( NP ( NNS companies ) ) ( ADJP ( JJ sensitive ) ( PP ( TO to ) ( NP ( DT the ) ( NN economy ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Boesel ) ) ( PP ( IN of ) ( NP ( NNP T. ) ( NNP Rowe ) ( NNP Price ) ) ) ) )

One of the stories of the fourth quarter is that we will get an unusual number of earnings disappointments from companies sensitive to the economy says Mr. Boesel of T. Rowe Price


( S ( NP-SBJ ( NP ( NNP James ) ( NNP Wright ) ) ( NP ( NP ( JJ chief ) ( NN investment ) ( NN officer ) ) ( PP ( IN for ) ( NP ( NNP Banc ) ( CD One ) ( NNP Asset ) ( NNP Management ) ) ) ) ) ( VP ( VBZ says ) ( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP 've ) ( VP ( VBN been ) ( VP ( VP ( VBG selling ) ( NP ( NP ( DT a ) ( JJ disproportionate ) ( NN share ) ) ( PP ( IN of ) ( NP ( JJ cyclical ) ( NNS companies ) ) ) ) ) ( CC and ) ( VP ( VBG buying ) ( NP ( NP ( DT a ) ( JJ disproportionate ) ( NN share ) ) ( PP ( IN of ) ( NP ( JJ high ) ( NNS earnings ) ( NNS stocks ) ) ) ) ) ) ) ) ) ) )

James Wright chief investment officer for Banc One Asset Management says We 've been selling a disproportionate share of cyclical companies and buying a disproportionate share of high earnings stocks


( S ( NP-SBJ ( PRP He ) ) ( ADVP-TMP ( RB recently ) ) ( VP ( VBD trimmed ) ( NP ( NP ( PRP$ his ) ( NN portfolio ) ) ( PP ( IN of ) ( NP ( NP ( NNP International ) ( NNP Paper ) ) ( NP ( NNP Dow ) ( NNP Chemical ) ) ( NP ( NNP Quantum ) ( NNP Chemical ) ) ( NP ( NNP International ) ( NNP Business ) ( NNPS Machines ) ) ( CC and ) ( NP ( NNP Digital ) ( NNP Equipment ) ) ) ) ) ) )

He recently trimmed his portfolio of International Paper Dow Chemical Quantum Chemical International Business Machines and Digital Equipment


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ is ) ( VP ( VBG putting ) ( NP ( NN money ) ) ( PP-PUT ( IN in ) ( NP ( NP ( NNP Dress ) ( NNP Barn ) ) ( NP ( NNP Circuit ) ( NNP City ) ( NNPS Stores ) ) ( NP ( NP ( NNP Bruno ) ( POS 's ) ) ) ( CC and ) ( NP ( NNP Rubbermaid ) ) ) ) ) ) )

He is putting money in Dress Barn Circuit City Stores Bruno 's and Rubbermaid


( SINV ( S-TPC-2 ( NP-SBJ ( JJ Big ) ( JJ cyclical ) ( NNS companies ) ) ( VP ( VBP are ) ( VP ( VBG using ) ( NP-3 ( NP ( PDT all ) ( DT the ) ( NNS tricks ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( MD can ) ) ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB stabilize ) ( NP ( NNS earnings ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Sloan ) ) )

Big cyclical companies are using all the tricks they can to stabilize earnings says Mr. Sloan


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ cites ) ( NP ( NP ( NNP IBM ) ) ( SBAR ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD reported ) ( NP ( NP ( DT a ) ( ADJP ( CD 30 ) ( NN % ) ) ( NNS earnings ) ( NN decline ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ third ) ( NN quarter ) ) ) ) ) ) ) ( CC and ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( NP-TMP ( JJ last ) ( NN week ) ) ( VP ( VBD announced ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 1 ) ( CD billion ) ) ) ( NN buy-back ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NNS shares ) ) ) ) ) ) ) ) ) ) )

He cites IBM which reported a 30 % earnings decline in the third quarter and which last week announced a 1 billion buy-back of its shares


( SINV ( S-TPC-2 ( SBAR-NOM-SBJ ( WHNP-1 ( WP What ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP are ) ( VP ( VBG telling ) ( NP ( PRP you ) ) ) ) ) ) ( VP ( VBZ is ) ( SBAR-PRD ( IN that ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB have ) ( NP ( DT the ) ( NN ability ) ( S ( VP ( TO to ) ( VP ( VB generate ) ( NP ( JJR higher ) ( NNS returns ) ) ( ADVP-LOC ( RB internally ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Sloan ) ) )

What they are telling you is that they do n't have the ability to generate higher returns internally says Mr. Sloan


( S ( SBAR-TMP ( WHADVP-1 ( WRB When ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP are ) ( VP ( VBG buying ) ( ADVP-CLR ( RB back ) ) ( NP ( NN stock ) ) ( PP-CLR ( IN at ) ( NP ( NP ( CD 10 ) ( NNS times ) ) ( NP-ADV ( NNS earnings ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP they ) ) ( VP ( VBP are ) ( VP ( VBG suggesting ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT the ) ( NN rate ) ) ( PP ( IN of ) ( NP ( NN return ) ) ) ( PP ( IN on ) ( NP ( VBG competing ) ( JJ internal ) ( NNS projects ) ) ) ) ( VP ( VBZ is ) ( PP-PRD ( IN below ) ( NP ( NP ( NNS returns ) ) ( PP ( IN on ) ( NP ( DT the ) ( NN stock ) ) ) ) ) ) ) ) ) ) )

When they are buying back stock at 10 times earnings they are suggesting that the rate of return on competing internal projects is below returns on the stock


( S ( NP-SBJ ( NNP IBM ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ considers ) ( S ( NP-SBJ ( PRP$ its ) ( NNS shares ) ) ( NP-PRD ( DT a ) ( JJ good ) ( NN investment ) ) ) ) ) ) ) )

IBM says it considers its shares a good investment


( S ( CC But ) ( NP-SBJ-1 ( RB not ) ( DT all ) ( NX ( NX ( NNS strategists ) ) ( CC or ) ( NX ( NN money ) ( NNS managers ) ) ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ ready ) ( S ( VP ( TO to ) ( VP ( VB throw ) ( PRT ( RP in ) ) ( NP ( DT the ) ( NN towel ) ) ( ADVP ( RB completely ) ) ( PP ( IN on ) ( NP ( NNS cyclicals ) ) ) ) ) ) ) ) )

But not all strategists or money managers are ready to throw in the towel completely on cyclicals


( S ( NP-SBJ ( NN Growth ) ( NNS stocks ) ) ( VP ( MD may ) ( VP ( VB underperform ) ( NP ( JJ cyclical ) ( NNS stocks ) ) ( PP-TMP ( IN next ) ( NP ( NN year ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ-1 ( DT the ) ( NNP Federal ) ( NNP Reserve ) ) ( VP ( VBZ begins ) ( S ( VP ( TO to ) ( VP ( VB let ) ( S ( NP-SBJ ( NN interest ) ( NNS rates ) ) ( VP ( VB drift ) ( ADVP-CLR ( RB sufficiently ) ( RBR lower ) ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB boost ) ( NP ( DT the ) ( NN economy ) ) ) ) ) ) ) ) ) ) ) ) ) )

Growth stocks may underperform cyclical stocks next year if the Federal Reserve begins to let interest rates drift sufficiently lower to boost the economy


( S ( NP-SBJ ( NP ( NP ( NNP Goldman ) ( NNP Sachs ) ( POS 's ) ) ( NNP Mr. ) ( NNP Einhorn ) ) ( PP ( IN for ) ( NP ( CD one ) ) ) ) ( VP ( VBZ subscribes ) ( PP-CLR ( TO to ) ( NP ( DT that ) ( NN scenario ) ) ) ) )

Goldman Sachs 's Mr. Einhorn for one subscribes to that scenario


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ suggests ) ( SBAR ( S ( NP-SBJ ( NNS investors ) ) ( VP ( VB think ) ( PP-CLR ( IN about ) ( S-NOM ( VP ( VBG buying ) ( NP ( NP ( NP ( JJ cyclical ) ( NNS shares ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NNS weeks ) ( RB ahead ) ) ) ) ( CONJP ( RB as ) ( RB well ) ( IN as ) ) ( NP ( NN growth ) ( NNS issues ) ) ) ) ) ) ) ) ) ) )

He suggests investors think about buying cyclical shares in the weeks ahead as well as growth issues


( NP-HLN ( NP ( NNP Friday ) ( POS 's ) ) ( NN Market ) ( NN Activity ) )

Friday 's Market Activity


( S ( NP-SBJ ( NN Stock ) ( NNS prices ) ) ( VP ( VBN finished ) ( ADJP-CLR ( IN about ) ( JJ unchanged ) ) ( NP-TMP ( NNP Friday ) ) ( PP-LOC ( IN in ) ( NP ( JJ quiet ) ( NN expiration ) ( NN trading ) ) ) ) )

Stock prices finished about unchanged Friday in quiet expiration trading


( S ( NP-SBJ ( NNS Traders ) ) ( VP ( VBD anticipated ) ( NP ( DT a ) ( JJ volatile ) ( NN session ) ) ( PP-PRP ( JJ due ) ( TO to ) ( NP ( NP ( DT the ) ( NNP October ) ( NN expiration ) ) ( PP ( IN of ) ( NP ( NP ( NN stock-index ) ( NNS futures ) ( CC and ) ( NNS options ) ) ( CC and ) ( NP ( NP ( NNS options ) ) ( PP ( IN on ) ( NP ( JJ individual ) ( NNS stocks ) ) ) ) ) ) ) ) ) )

Traders anticipated a volatile session due to the October expiration of stock-index futures and options and options on individual stocks


( S ( CC But ) ( NP-SBJ ( EX there ) ) ( VP ( VBD were ) ( NP-PRD ( NP ( JJR fewer ) ( NN price ) ( NNS swings ) ) ( SBAR ( IN than ) ( S ( VP ( VBN expected ) ) ) ) ) ) )

But there were fewer price swings than expected


( S ( NP-SBJ-1991 ( NP ( JJ Buy ) ( NN order ) ( NNS imbalances ) ) ( PP ( IN on ) ( NP ( JJ several ) ( JJ big ) ( NNS stocks ) ) ) ) ( VP ( VBD were ) ( VP ( VBN posted ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ) ) ) ) )

Buy order imbalances on several big stocks were posted by the New York Stock Exchange


( S ( S-TPC-2 ( CC But ) ( NP-SBJ ( NP ( NN block ) ( NN trading ) ( NNS desks ) ) ( CC and ) ( NP ( NN money ) ( NNS managers ) ) ) ( VP ( VBD made ) ( NP ( DT a ) ( JJ concerted ) ( NN effort ) ( S ( VP ( TO to ) ( VP ( VB meet ) ( NP ( DT the ) ( NNS imbalances ) ) ( PP ( IN with ) ( NP ( NP ( NN stock ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB sell ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( CD one ) ( NN trader ) ) ( VP ( VBD said ) ) )

But block trading desks and money managers made a concerted effort to meet the imbalances with stock to sell one trader said


( S ( PP ( IN As ) ( NP ( DT a ) ( NN result ) ) ) ( NP-SBJ ( DT the ) ( NNP Dow ) ( NNP Jones ) ( NNP Industrial ) ( NNP Average ) ) ( VP ( VP ( VBD drifted ) ( PP-MNR ( IN in ) ( NP ( JJ narrow ) ( NNS ranges ) ) ) ( PP-TMP ( IN in ) ( NP ( NP ( DT the ) ( JJ final ) ( NN hour ) ) ( PP ( IN of ) ( NP ( NN trading ) ) ) ) ) ) ( CC and ) ( VP ( VBN closed ) ( NP-CLR ( NP ( CD 5.94 ) ) ( ADJP ( JJR higher ) ) ) ( PP-DIR ( TO to ) ( NP ( CD 2689.14 ) ) ) ) ) )

As a result the Dow Jones Industrial Average drifted in narrow ranges in the final hour of trading and closed 5.94 higher to 2689.14


( S ( NP-SBJ ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ( NN volume ) ) ( VP ( VBD was ) ( NP-PRD ( CD 164,830,000 ) ) ) )

New York Stock Exchange volume was 164,830,000


( S ( NP-SBJ ( NP ( NNS Advancers ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP Big ) ( NNP Board ) ) ) ) ( VP ( VBD lagged ) ( NP ( NNS decliners ) ) ( NP-EXT ( NP ( CD 662 ) ) ( PP ( TO to ) ( NP ( CD 829 ) ) ) ) ) )

Advancers on the Big Board lagged decliners 662 to 829


( S ( PP-TMP ( IN For ) ( NP ( DT the ) ( NN week ) ) ) ( NP-SBJ ( DT the ) ( JJ industrial ) ( NN average ) ) ( VP ( VBD gained ) ( NP ( NP-EXT ( NP ( CD 119.88 ) ( NNS points ) ) ( CC or ) ( NP ( CD 4.7 ) ( NN % ) ) ) ( NP ( NP ( DT the ) ( JJS biggest ) ( JJ weekly ) ( NN point ) ( NN advance ) ( RB ever ) ) ( CC and ) ( NP ( NP ( DT a ) ( ADJP ( QP ( JJR better ) ( IN than ) ( CD 50 ) ) ( NN % ) ) ( NN rebound ) ) ( PP ( IN from ) ( NP ( NP ( DT the ) ( CD 190.58 ) ( NN point ) ( NN loss ) ) ( SBAR ( S ( NP-SBJ ( DT the ) ( JJ industrial ) ( NN average ) ) ( VP ( VBD logged ) ( NP-TMP ( NNP Oct. ) ( CD 13 ) ) ) ) ) ) ) ) ) ) ) )

For the week the industrial average gained 119.88 points or 4.7 % the biggest weekly point advance ever and a better than 50 % rebound from the 190.58 point loss the industrial average logged Oct. 13


( S ( NP-SBJ ( JJR Broader ) ( NN market ) ( NNS averages ) ) ( VP ( VBD were ) ( ADJP-PRD ( RB little ) ( JJ changed ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJS latest ) ( NN session ) ) ) ) )

Broader market averages were little changed in the latest session


( S ( S ( NP-SBJ ( NP ( NNP Standard ) ( CC & ) ( NNP Poor ) ( POS 's ) ) ( NNP 500-Stock ) ( NNP Index ) ) ( VP ( VBD gained ) ( NP-EXT ( CD 0.03 ) ) ( PP-DIR ( TO to ) ( NP ( CD 347.16 ) ) ) ) ) ( S ( NP-SBJ ( DT the ) ( NNP Dow ) ( NNP Jones ) ( NNP Equity ) ( NNP Market ) ( NNP Index ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 0.02 ) ) ( PP-DIR ( TO to ) ( NP ( CD 325.50 ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT the ) ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ( NNP Composite ) ( NNP Index ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 0.05 ) ) ( PP-DIR ( TO to ) ( NP ( CD 192.12 ) ) ) ) ) )

Standard & Poor 's 500-Stock Index gained 0.03 to 347.16 the Dow Jones Equity Market Index fell 0.02 to 325.50 and the New York Stock Exchange Composite Index fell 0.05 to 192.12


( S ( NP-SBJ ( NP ( JJS Most ) ) ( PP ( IN of ) ( NP ( NP ( NP ( JJ last ) ( NN week ) ( POS 's ) ) ( NN surge ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ industrial ) ( NN average ) ) ) ) ) ) ( VP ( VBD came ) ( PP-TMP ( IN on ) ( NP ( NP ( NNP Monday ) ) ( SBAR ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( DT the ) ( NN average ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 88.12 ) ( NNS points ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( NN market ) ( NNS players ) ) ( VP ( VP ( VBD snapped ) ( PRT ( RP up ) ) ( NP ( JJ blue-chip ) ( NNS issues ) ) ) ( CC and ) ( VP ( VBD shunned ) ( NP ( DT the ) ( JJ broad ) ( NN market ) ) ) ) ) ) ) ) ) ) ) ) )

Most of last week 's surge in the industrial average came on Monday when the average rose 88.12 points as market players snapped up blue-chip issues and shunned the broad market


( S ( NP-SBJ-1991 ( DT That ) ( NN contrast ) ) ( VP ( VBD was ) ( VP ( VBN reflected ) ( PP-LOC-CLR ( IN in ) ( NP ( NP ( DT the ) ( JJR smaller ) ( JJ weekly ) ( NN percentage ) ( NNS gains ) ) ( VP ( VBN recorded ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( JJR broader ) ( NNS averages ) ) ) ) ) ) ) ) )

That contrast was reflected in the smaller weekly percentage gains recorded by the broader averages


( S ( S ( NP-SBJ ( DT The ) ( NNP S&P ) ( CD 500 ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 4 ) ( NN % ) ) ) ) ( S ( NP-SBJ ( DT the ) ( NNP Dow ) ( NNP Jones ) ( NNP Equity ) ( NNP Market ) ( NN index ) ) ( VP ( VBD gained ) ( NP-EXT ( CD 3.7 ) ( NN % ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT the ) ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ( JJ composite ) ( NN index ) ) ( VP ( VBD added ) ( NP-EXT ( CD 3.5 ) ( NN % ) ) ) ) )

The S&P 500 rose 4 % the Dow Jones Equity Market index gained 3.7 % and the New York Stock Exchange composite index added 3.5 %


( S ( NP-SBJ ( DT The ) ( NNP Dow ) ( NNP Jones ) ( NNP Transportation ) ( NNP Average ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 32.71 ) ) ( PP-DIR ( TO to ) ( NP ( CD 1230.80 ) ) ) ( PP ( IN amid ) ( NP ( NP ( VBN renewed ) ( NN weakness ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN airline ) ( NN sector ) ) ) ) ) ) )

The Dow Jones Transportation Average fell 32.71 to 1230.80 amid renewed weakness in the airline sector


( S ( NP-SBJ ( NNP UAL ) ) ( VP ( VBD skidded ) ( NP-EXT ( CD 21 ) ( CD 5\/8 ) ) ( PP-DIR ( TO to ) ( NP ( CD 168 ) ( CD 1\/2 ) ) ) ( PP ( IN on ) ( NP ( QP ( CD 2.2 ) ( CD million ) ) ( NNS shares ) ) ) ) )

UAL skidded 21 5\/8 to 168 1\/2 on 2.2 million shares


( S ( PP-TMP ( IN On ) ( NP ( DT the ) ( NN week ) ) ) ( NP-SBJ ( NNP UAL ) ) ( VP ( VBD was ) ( ADVP-PRD ( RB down ) ( NP-EXT ( QP ( RB nearly ) ( CD 40 ) ) ( NN % ) ) ) ) )

On the week UAL was down nearly 40 %


( S ( NP-SBJ ( DT The ) ( JJS latest ) ( NN drop ) ) ( VP ( VBD followed ) ( NP ( NP ( DT a ) ( NN decision ) ) ( PP ( IN by ) ( NP ( NP ( NNP British ) ( NNPS Airways ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD had ) ( VP ( VBN supported ) ( NP ( NP ( DT the ) ( ADJP ( JJ 300-a-share ) ) ( NN buy-out ) ( NN offer ) ) ( PP ( IN for ) ( NP ( NNP UAL ) ) ) ( PP ( IN from ) ( NP ( DT a ) ( JJ labor-management ) ( NN group ) ) ) ) ) ) ) ) ) ) ( S-2 ( RB not ) ( VP ( TO to ) ( VP ( VB participate ) ( PP-LOC ( IN in ) ( NP ( DT any ) ( VBN revised ) ( NN bid ) ) ) ) ) ) ) ) )

The latest drop followed a decision by British Airways which had supported the 300-a-share buy-out offer for UAL from a labor-management group not to participate in any revised bid


( S ( NP-SBJ ( NNP British ) ( NNPS Airways ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 1 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 31 ) ( CD 7\/8 ) ) ) ) ) )

British Airways fell 1 to 31 7\/8


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( JJS most ) ( JJ other ) ( NN airline ) ( NNS issues ) ) ( VP ( VBD took ) ( NP ( PRP$ their ) ( NN cue ) ) ( PP-CLR ( IN from ) ( NP ( NNP UAL ) ) ) ) ) ) ( NP-SBJ ( NNP USAir ) ( NNP Group ) ) ( VP ( VBD rose ) ( NP-EXT ( QP ( CD 1 ) ( CD 3\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 43 ) ( CD 1\/4 ) ) ) ) ( PP ( IN on ) ( NP ( QP ( CD 1.5 ) ( CD million ) ) ( NNS shares ) ) ) ( PP ( IN amid ) ( NP ( NP ( NN speculation ) ) ( PP ( IN about ) ( NP ( NP ( DT a ) ( JJ possible ) ( NN takeover ) ( NN proposal ) ) ( PP ( IN from ) ( NP ( NN investor ) ( NNP Marvin ) ( NNP Davis ) ) ) ) ) ) ) ) )

While most other airline issues took their cue from UAL USAir Group rose 1 3\/4 to 43 1\/4 on 1.5 million shares amid speculation about a possible takeover proposal from investor Marvin Davis


( S ( NP-TTL-SBJ ( NNP USA ) ( NNP Today ) ) ( VP ( VBD reported ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Davis ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBD had ) ( VP ( VBN pursued ) ( NP ( NNP UAL ) ) ( PP-TMP ( IN before ) ( S-NOM ( VP ( VBG dropping ) ( NP ( PRP$ his ) ( NN bid ) ) ( NP-TMP ( NNP Wednesday ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN acquired ) ( NP ( NP ( DT a ) ( NN stake ) ) ( PP ( IN of ) ( NP ( QP ( IN about ) ( CD 3 ) ) ( NN % ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP USAir ) ) ) ) ) ) ) ) ) )

USA Today reported that Mr. Davis who had pursued UAL before dropping his bid Wednesday has acquired a stake of about 3 % in USAir


( S ( S ( NP-SBJ ( NNP Unocal ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 1 ) ( CD 1\/2 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 52 ) ( CD 1\/4 ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNP Burlington ) ( NNPS Resources ) ) ( VP ( VBD declined ) ( NP-EXT ( CD 7\/8 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 45 ) ( CD 5\/8 ) ) ) ) ) ) )

Unocal fell 1 1\/2 to 52 1\/4 and Burlington Resources declined 7\/8 to 45 5\/8


( S ( PP-LOC ( IN At ) ( NP ( NP ( DT a ) ( NN meeting ) ) ( PP ( IN with ) ( NP ( NNS analysts ) ) ) ) ) ( NP-SBJ ( NNP British ) ( NNP Petroleum ) ( NNS officials ) ) ( VP ( VBD dispelled ) ( NP ( NN speculation ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( MD may ) ( VP ( VB take ) ( PRT ( RP over ) ) ( NP ( DT a ) ( NNP U.S. ) ( NN oil ) ( NN company ) ) ) ) ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NNP Dow ) ( NNP Jones ) ( NNP Professional ) ( NNP Investor ) ( NNP Report ) ) ) ) ) )

At a meeting with analysts British Petroleum officials dispelled speculation that the company may take over a U.S. oil company according to Dow Jones Professional Investor Report


( S ( NP-SBJ-1 ( DT Both ) ( NNP Unocal ) ( CC and ) ( NNP Burlington ) ) ( VP ( VBD had ) ( VP ( VBN been ) ( VP ( VBN seen ) ( PP-CLR ( IN as ) ( NP ( NP ( JJ potential ) ( NNS targets ) ) ( PP ( IN for ) ( NP ( DT a ) ( NNP British ) ( NNP Petroleum ) ( NN bid ) ) ) ) ) ) ) ) )

Both Unocal and Burlington had been seen as potential targets for a British Petroleum bid


( S ( NP-SBJ ( NNP Paper ) ( CC and ) ( NNS forest-products ) ( NNS stocks ) ) ( VP ( VBD declined ) ( SBAR-TMP ( IN after ) ( S ( NP-SBJ ( NNP Smith ) ( NNP Barney ) ( NNP Harris ) ( NNP Upham ) ( CC & ) ( NNP Co. ) ) ( VP ( VBD lowered ) ( NP ( NP ( NN investment ) ( NNS ratings ) ) ( PP ( IN on ) ( NP ( NP ( DT a ) ( NN number ) ) ( PP ( IN of ) ( NP ( NNS issues ) ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( CD two ) ( NNS sectors ) ) ) ) ) ) ( PP ( VBN based ) ( PP-LOC-CLR ( IN on ) ( NP ( DT a ) ( NN forecast ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NN pulp ) ( NNS prices ) ) ( VP ( MD will ) ( VP ( VB fall ) ( ADVP-MNR ( RB sharply ) ) ) ) ) ) ) ) ) ) ) ) ) )

Paper and forest-products stocks declined after Smith Barney Harris Upham & Co. lowered investment ratings on a number of issues in the two sectors based on a forecast that pulp prices will fall sharply


( S ( S ( NP-SBJ ( NNP International ) ( NNP Paper ) ) ( VP ( VBD dropped ) ( NP-EXT ( CD 5\/8 ) ) ( PP-DIR ( TO to ) ( NP ( CD 51 ) ) ) ) ) ( S ( NP-SBJ ( NNP Georgia-Pacific ) ) ( VP ( VBD fell ) ( NP-EXT ( QP ( CD 1 ) ( CD 3\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 56 ) ( CD 1\/4 ) ) ) ) ) ) ( S ( NP-SBJ ( NNP Stone ) ( NNP Container ) ) ( VP ( VBD tumbled ) ( NP-EXT ( QP ( CD 1 ) ( CD 1\/2 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 26 ) ( CD 5\/8 ) ) ) ) ) ) ( S ( NP-SBJ ( NNP Great ) ( NNP Northern ) ( NNP Nekoosa ) ) ( VP ( VBD went ) ( ADVP-PRD ( RB down ) ( NP-EXT ( CD 5\/8 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 38 ) ( CD 3\/8 ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNP Weyerhaeuser ) ) ( VP ( VBD lost ) ( NP-EXT ( CD 7\/8 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 28 ) ( CD 1\/8 ) ) ) ) ) ) )

International Paper dropped 5\/8 to 51 Georgia-Pacific fell 1 3\/4 to 56 1\/4 Stone Container tumbled 1 1\/2 to 26 5\/8 Great Northern Nekoosa went down 5\/8 to 38 3\/8 and Weyerhaeuser lost 7\/8 to 28 1\/8


( S ( NP-SBJ ( NNP Dun ) ( CC & ) ( NNP Bradstreet ) ) ( VP ( VBD dropped ) ( NP-EXT ( CD 3\/4 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 51 ) ( CD 1\/8 ) ) ) ) ( PP ( IN on ) ( NP ( QP ( CD 1.9 ) ( CD million ) ) ( NNS shares ) ) ) ( PP ( IN on ) ( NP ( NP ( NN uncertainty ) ) ( PP ( IN about ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NNS earnings ) ( NNS prospects ) ) ) ) ) ) )

Dun & Bradstreet dropped 3\/4 to 51 1\/8 on 1.9 million shares on uncertainty about the company 's earnings prospects


( S ( NP-SBJ-1 ( NNP Merrill ) ( NNP Lynch ) ) ( VP ( VBD cut ) ( NP ( PRP$ its ) ( NN rating ) ( CC and ) ( CD 1990 ) ( NNS earnings ) ( NN estimate ) ) ( NP-TMP ( NNP Thursday ) ) ( S-ADV ( VP ( VBG citing ) ( NP ( NP ( NN weakness ) ) ( PP-LOC ( IN in ) ( NP ( PRP$ its ) ( NN credit-rating ) ( NN business ) ) ) ) ) ) ) )

Merrill Lynch cut its rating and 1990 earnings estimate Thursday citing weakness in its credit-rating business


( S ( NP-SBJ ( NP ( NNP Lamson ) ( CC & ) ( NNP Sessions ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VP ( VBD posted ) ( NP ( ADVP ( RB sharply ) ( JJR lower ) ) ( NN third-quarter ) ( NNS earnings ) ) ) ( CC and ) ( VP ( VBD forecast ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NNS results ) ) ( PP ( IN for ) ( NP ( DT the ) ( JJ fourth ) ( NN quarter ) ) ) ) ( VP ( MD might ) ( VP ( VB be ) ( PP-PRD ( RB near ) ( ADJP ( JJ break-even ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 1\/2 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 9 ) ( CD 1\/4 ) ) ) ) ) )

Lamson & Sessions which posted sharply lower third-quarter earnings and forecast that results for the fourth quarter might be near break-even fell 1\/2 to 9 1\/4


( S ( NP-SBJ ( NNP Winnebago ) ( NNPS Industries ) ) ( VP ( VBD slid ) ( NP-EXT ( CD 5\/8 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 5 ) ( CD 1\/4 ) ) ) ) ) )

Winnebago Industries slid 5\/8 to 5 1\/4


( S ( NP-SBJ ( NP ( DT The ) ( NN company ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD reported ) ( SBAR ( DT that ) ( S ( NP-SBJ ( NP ( PRP$ its ) ( NN loss ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( JJ fiscal ) ( NN quarter ) ) ( VP ( VBN ended ) ( NP-TMP-CLR ( NNP Aug. ) ( CD 26 ) ) ) ) ) ) ( VP ( VBN widened ) ( PP-DIR ( IN from ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( RB earlier ) ) ) ) ) ) ) ) ) ) ( VP ( VB cut ) ( NP ( PRP$ its ) ( JJ semiannual ) ( NN dividend ) ) ( PP-CLR ( IN in ) ( NP ( NN half ) ) ) ( PP ( IN in ) ( NP ( NP ( NN response ) ) ( PP ( TO to ) ( NP ( DT the ) ( NNS earnings ) ( NN weakness ) ) ) ) ) ) )

The company which reported that its loss for the fiscal quarter ended Aug. 26 widened from a year earlier cut its semiannual dividend in half in response to the earnings weakness


( S ( NP-SBJ-1 ( NNP MassMutual ) ( NNP Corporate ) ( NNPS Investors ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 3 ) ) ( PP-DIR ( TO to ) ( NP ( CD 29 ) ) ) ( PP-TMP ( IN after ) ( S-NOM ( VP ( VBG declaring ) ( NP ( NP ( DT a ) ( JJ quarterly ) ( NN dividend ) ) ( PP ( IN of ) ( NP ( NP ( CD 70 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( ADVP ( RB down ) ( PP ( IN from ) ( NP ( NP ( CD 95 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) ) ) ) )

MassMutual Corporate Investors fell 3 to 29 after declaring a quarterly dividend of 70 cents a share down from 95 cents a share


( S ( NP-SBJ ( NNP ATHLONE ) ( NNPS INDUSTRIES ) ( NNP Inc. ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( PP-TMP ( IN on ) ( NP ( NNP Dec. ) ( CD 21 ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB redeem ) ( NP ( NP ( ADJP ( QP ( CD 10 ) ( CD million ) ) ) ( NN face ) ( NN amount ) ) ( PP ( IN of ) ( NP ( NP ( PRP$ its ) ( QP ( CD 59.3 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( NP ( NP ( ADJP ( CD 15.625 ) ( NN % ) ) ( JJ subordinated ) ( NNS notes ) ) ( ADJP ( JJ outstanding ) ) ) ( ADJP ( JJ due ) ( NP-TMP ( NNP June ) ( CD 1 ) ( CD 1991 ) ) ) ) ) ) ) ) ) ) ) ) ) )

ATHLONE INDUSTRIES Inc. said that on Dec. 21 it will redeem 10 million face amount of its 59.3 million of 15.625 % subordinated notes outstanding due June 1 1991


( S ( PP ( IN For ) ( NP ( NP ( DT each ) ( CD 1,000 ) ) ( PP ( IN of ) ( NP ( NNS notes ) ) ) ) ) ( NP-SBJ ( NP ( DT the ) ( NN maker ) ) ( PP ( IN of ) ( NP ( NP ( NN specialty ) ( NNS metals ) ) ( NP ( JJ industrial ) ( NNS fasteners ) ) ( CC and ) ( NP ( NN consumer ) ( NNS products ) ) ) ) ) ( VP ( MD will ) ( VP ( VB pay ) ( NP ( NP ( CD 1,026.46 ) ) ( PP ( CC plus ) ( NP ( NP ( CD 8.68 ) ) ( PP ( IN of ) ( NP ( NP ( NN interest ) ) ( VP ( VBN accrued ) ( PP-TMP ( IN from ) ( NP ( NNP Dec. ) ( CD 1 ) ) ) ) ) ) ) ) ) ) ) )

For each 1,000 of notes the maker of specialty metals industrial fasteners and consumer products will pay 1,026.46 plus 8.68 of interest accrued from Dec. 1


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( MD will ) ( VP ( VB notify ) ( NP ( NP ( NNS holders ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS notes ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN redeemed ) ) ) ) ) ) ) ) ) ) ) )

The company will notify holders of the notes to be redeemed


( S ( NP-SBJ ( NNPS Manufacturers ) ( NNP Hanover ) ( NNP Trust ) ( NNP Co. ) ) ( VP ( VBZ is ) ( NP-PRD ( NN redemption ) ( NN agent ) ) ) )

Manufacturers Hanover Trust Co. is redemption agent


( S ( NP-SBJ ( NP ( DT THE ) ( NNP SUPREME ) ( NNP COURT ) ( NN ruling ) ) ( VP ( VBG upholding ) ( NP ( NP ( NNP Missouri ) ( POS 's ) ) ( JJ restrictive ) ( NN abortion ) ( NN law ) ) ) ) ( VP ( VBD was ) ( NP-PRD ( NNP Webster ) ( FW vs. ) ( NNP Reproductive ) ( NNP Health ) ( NNPS Services ) ) ) )

THE SUPREME COURT ruling upholding Missouri 's restrictive abortion law was Webster vs. Reproductive Health Services


( S ( NP-SBJ-1 ( DT The ) ( NN citation ) ) ( VP ( VBD was ) ( VP ( VBN misstated ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Friday ) ( POS 's ) ) ( NN edition ) ) ) ) ) )

The citation was misstated in Friday 's edition


( S ( PP ( IN For ) ( NP ( NNP Cathay ) ( NNP Pacific ) ( NNPS Airways ) ) ) ( NP-SBJ ( DT the ) ( JJ smooth ) ( NN ride ) ) ( VP ( MD may ) ( VP ( VB be ) ( VP ( VBG ending ) ) ) ) )

For Cathay Pacific Airways the smooth ride may be ending


( S ( NP-SBJ ( NP ( DT The ) ( JJ first ) ( NNS signs ) ) ( PP ( IN of ) ( NP ( NN trouble ) ) ) ) ( VP ( VBD came ) ( NP-TMP ( JJ last ) ( NN month ) ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( NP ( DT the ) ( NNP Hong ) ( NNP Kong ) ( NN carrier ) ) ( NP ( NP ( DT a ) ( NN subsidiary ) ) ( PP ( IN of ) ( NP ( NNP Swire ) ( NNP Pacific ) ( NNP Ltd. ) ) ) ) ) ( VP ( VP ( VBD posted ) ( NP ( NP ( DT a ) ( ADJP ( CD 5 ) ( NN % ) ) ( NN drop ) ) ( PP ( IN in ) ( NP ( NN operating ) ( NN profit ) ) ) ( PP-TMP ( IN for ) ( NP ( DT the ) ( JJ first ) ( CD six ) ( NNS months ) ) ) ) ) ( CC and ) ( VP ( VBD warned ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNS margins ) ) ( VP ( MD will ) ( VP ( VB remain ) ( PP-CLR ( IN under ) ( NP ( NN pressure ) ) ) ( PP-TMP ( IN for ) ( NP ( NP ( DT the ) ( NN rest ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN year ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The first signs of trouble came last month when the Hong Kong carrier a subsidiary of Swire Pacific Ltd. posted a 5 % drop in operating profit for the first six months and warned that margins will remain under pressure for the rest of the year


( S ( NP-SBJ ( NP ( NNS Securities ) ( NNS analysts ) ) ( SBAR ( WHNP-1 ( NP ( DT many ) ) ( PP ( IN of ) ( WHNP ( WP whom ) ) ) ) ( S ( VP ( VBD scrapped ) ( NP ( PRP$ their ) ( JJ buy ) ( NNS recommendations ) ) ( PP-TMP ( IN after ) ( S-NOM ( VP ( VBG seeing ) ( NP ( NP ( NNP Cathay ) ( POS 's ) ) ( JJ interim ) ( NNS figures ) ) ) ) ) ) ) ) ) ( VP ( VBP believe ) ( SBAR ( S ( NP-SBJ ( JJR more ) ( NNS jolts ) ) ( VP ( VBP lie ) ( ADVP-LOC-CLR ( RB ahead ) ) ) ) ) ) )

Securities analysts many of whom scrapped their buy recommendations after seeing Cathay 's interim figures believe more jolts lie ahead


( S ( S ( NP-SBJ ( NN Fuel ) ( CC and ) ( NN personnel ) ( NNS costs ) ) ( VP ( VBP are ) ( VP ( VBG rising ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( NN tourism ) ) ( PP-LOC ( IN in ) ( CC and ) ( IN through ) ( NP ( NNP Hong ) ( NNP Kong ) ) ) ) ( VP ( VBZ remains ) ( ADJP-PRD ( JJ clouded ) ( PP ( IN by ) ( NP ( NP ( NP ( NNP China ) ( POS 's ) ) ( NN turmoil ) ) ( PP-TMP ( IN since ) ( NP ( NP ( DT the ) ( NNP June ) ( CD 4 ) ( NNS killings ) ) ( PP-LOC ( IN in ) ( NP ( NNP Beijing ) ) ) ) ) ) ) ) ) ) )

Fuel and personnel costs are rising and tourism in and through Hong Kong remains clouded by China 's turmoil since the June 4 killings in Beijing


( S ( PP ( IN In ) ( NP ( NN addition ) ) ) ( NP-SBJ ( NP ( NN delivery ) ( NNS delays ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( JJ first ) ( CD two ) ) ( PP ( IN of ) ( NP ( NP ( NP ( QP ( RB as ) ( JJ many ) ( IN as ) ( CD 28 ) ) ( NNP Boeing ) ( NNS 747-400s ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( NP-SBJ ( DT the ) ( NN carrier ) ) ( VP ( VBZ has ) ( VP ( VBN ordered ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBP have ) ( VP ( VBN raised ) ( NP ( NNS costs ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ-2 ( NNS personnel ) ) ( VP ( VBD had ) ( VP ( VBN been ) ( VP ( VBN hired ) ( S ( VP ( TO to ) ( VP ( VB man ) ( NP ( DT the ) ( NNS planes ) ) ) ) ) ) ) ) ) ) ) ) )

In addition delivery delays for the first two of as many as 28 Boeing 747-400s that the carrier has ordered have raised costs because personnel had been hired to man the planes


( S ( CC And ) ( NP-SBJ ( NP ( JJ tough ) ( NN competition ) ) ( PP ( IN in ) ( NP ( DT the ) ( JJ air-freight ) ( NN market ) ) ) ) ( VP ( VBZ is ) ( VP ( VBG cutting ) ( PP-CLR ( IN into ) ( NP ( DT an ) ( JJ important ) ( NN sideline ) ) ) ) ) )

And tough competition in the air-freight market is cutting into an important sideline


( S ( NP-SBJ ( EX There ) ) ( ADVP ( RB also ) ) ( VP ( VBZ is ) ( NP-PRD ( NN concern ) ( SBAR ( IN that ) ( S ( SBAR-TMP ( RB once ) ( S ( NP-SBJ ( NNP Hong ) ( NNP Kong ) ) ( VP ( VBZ reverts ) ( PP-CLR ( TO to ) ( NP ( NP ( NNP China ) ( POS 's ) ) ( NN sovereignty ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1997 ) ) ) ) ) ) ( NP-SBJ-1 ( NNP Cathay ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN forced ) ( S ( VP ( TO to ) ( VP ( VB play ) ( NP ( JJ second ) ( NN fiddle ) ) ( PP-CLR ( TO to ) ( NP ( NP ( NP ( NNP China ) ( POS 's ) ) ( JJ often-disparaged ) ( NN flag ) ( NN carrier ) ) ( NP ( NP ( NP ( NNP Civil ) ( NNP Aviation ) ( NNP Administration ) ) ( PP ( IN of ) ( NP ( NNP China ) ) ) ) ( CC or ) ( NP ( NNP CAAC ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

There also is concern that once Hong Kong reverts to China 's sovereignty in 1997 Cathay will be forced to play second fiddle to China 's often-disparaged flag carrier Civil Aviation Administration of China or CAAC


( SINV ( S-TPC-4 ( NP-SBJ ( DT The ) ( NN sense ) ) ( VP ( VBZ is ) ( SBAR-PRD ( S ( NP-SBJ ( PRP we ) ) ( VP ( MD would ) ( ADVP-TMP ( RB never ) ) ( VP ( VB be ) ( PP-PRD ( IN in ) ( NP ( NP ( DT a ) ( NN position ) ) ) ) ( ADVP-TMP ( RB again ) ) ( SBAR-1 ( WHADVP-2 ( WRB where ) ) ( S ( NP-SBJ ( NN everything ) ) ( VP ( VBZ works ) ( PP ( IN for ) ( NP ( PRP us ) ) ) ( NP ( NP ( DT the ) ( NN way ) ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD did ) ( ADVP-TMP ( RB before ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Rod ) ( NNP Eddington ) ) ( NP ( NP ( NNP Cathay ) ( POS 's ) ) ( JJ commercial ) ( NN director ) ) ) )

The sense is we would never be in a position again where everything works for us the way it did before says Rod Eddington Cathay 's commercial director


( S ( NP-SBJ ( NP ( NNP Sarah ) ( NNP Hall ) ) ( NP ( NP ( DT an ) ( NN analyst ) ) ( PP-LOC ( IN at ) ( NP ( NNP James ) ( NNP Capel ) ( NNP Far ) ( NNP East ) ( NNP Ltd. ) ) ) ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( EX there ) ) ( VP ( VBZ is ) ( RB n't ) ( NP-PRD ( NP ( JJ much ) ) ( SBAR ( S ( NP-SBJ ( NNP Cathay ) ) ( VP ( MD can ) ( VP ( VB do ) ( PP ( IN about ) ( NP ( NP ( NP ( VBG rising ) ( NNS costs ) ) ( PP ( IN for ) ( NP ( NN jet ) ( NN fuel ) ) ) ) ( NP ( NP ( NNP Hong ) ( NNP Kong ) ( POS 's ) ) ( JJ tight ) ( NN labor ) ( NN market ) ) ( CC or ) ( NP ( NP ( DT the ) ( NN strengthening ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ local ) ( NN currency ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBZ is ) ( VP ( VBN pegged ) ( PP-CLR ( TO to ) ( NP ( DT the ) ( NNP U.S. ) ( NN dollar ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Sarah Hall an analyst at James Capel Far East Ltd. says there is n't much Cathay can do about rising costs for jet fuel Hong Kong 's tight labor market or the strengthening of the local currency which is pegged to the U.S. dollar


( S ( S-TPC-2 ( NP-SBJ-1 ( DT These ) ( NNS factors ) ) ( VP ( VBP are ) ( VP ( RBR further ) ( VBN complicated ) ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( NN airline ) ( POS 's ) ) ( NN push ) ( S ( VP ( TO to ) ( VP ( VB transform ) ( NP ( PRP itself ) ) ( PP-CLR ( IN from ) ( NP ( DT a ) ( JJ regional ) ( NN carrier ) ) ) ( PP-CLR ( TO to ) ( NP ( DT an ) ( JJ international ) ( NN one ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Ms. ) ( NNP Hall ) ) ( VP ( VBZ says ) ) )

These factors are further complicated by the airline 's push to transform itself from a regional carrier to an international one Ms. Hall says


( S ( NP-SBJ ( NNP Ms. ) ( NNP Hall ) ) ( VP ( VBZ expects ) ( S ( NP-SBJ ( NP ( NNP Cathay ) ( POS 's ) ) ( NN profit ) ) ( VP ( TO to ) ( VP ( VB grow ) ( NP ( NP ( QP ( IN around ) ( CD 13 ) ) ( NN % ) ) ( ADVP-TMP ( RB annually ) ) ) ( NP-TMP ( NP ( DT this ) ( NN year ) ) ( CC and ) ( NP ( JJ next ) ) ) ) ) ) ) )

Ms. Hall expects Cathay 's profit to grow around 13 % annually this year and next


( S ( PP-TMP ( IN In ) ( NP ( CD 1988 ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBD earned ) ( NP ( NP ( QP ( CD 2.82 ) ( CD billion ) ) ( NNP Hong ) ( NNP Kong ) ) ( PRN ( NP ( QP ( CD 361.5 ) ( CD million ) ) ) ) ) ( PP ( IN on ) ( NP ( NP ( NN revenue ) ) ( PP ( IN of ) ( NP ( QP ( CD 11.79 ) ( CD billion ) ) ) ) ) ) ) )

In 1988 it earned 2.82 billion Hong Kong 361.5 million on revenue of 11.79 billion


( S ( NP-SBJ-1 ( NNP Cathay ) ) ( VP ( VBZ is ) ( VP ( VBG taking ) ( NP-CLR ( JJ several ) ( NNS steps ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB bolster ) ( NP ( NN business ) ) ) ) ) ) ) )

Cathay is taking several steps to bolster business


( S ( NP-SBJ ( CD One ) ( NN step ) ) ( VP ( VBZ is ) ( S-PRD ( VP ( TO to ) ( VP ( VB beef ) ( PRT ( RP up ) ) ( NP ( PRP$ its ) ( NN fleet ) ) ) ) ) ) )

One step is to beef up its fleet


( S ( PP ( IN In ) ( NP ( NP ( NN addition ) ) ( PP ( TO to ) ( NP ( NP ( NN aircraft ) ) ( PP ( IN from ) ( NP ( NNP Boeing ) ( NNP Co. ) ) ) ) ) ) ) ( NP-SBJ ( NNP Cathay ) ) ( VP ( VBD announced ) ( NP-TMP ( RBR earlier ) ( DT this ) ( NN year ) ) ( NP ( NP ( DT an ) ( NN order ) ) ( PP ( IN for ) ( NP ( QP ( RB as ) ( JJ many ) ( IN as ) ( CD 20 ) ) ( NNP Airbus ) ( NNS A330-300s ) ) ) ) ) )

In addition to aircraft from Boeing Co. Cathay announced earlier this year an order for as many as 20 Airbus A330-300s


( S ( NP-SBJ ( NP ( DT The ) ( NN expansion ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( MD could ) ( VP ( VB cost ) ( NP ( QP ( RB as ) ( JJ much ) ( IN as ) ( CD 5.7 ) ( CD billion ) ) ) ( PP-TMP ( IN over ) ( NP ( DT the ) ( JJ next ) ( CD eight ) ( NNS years ) ) ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB expand ) ( NP ( DT the ) ( NN fleet ) ) ( PP-DIR ( TO to ) ( NP ( IN about ) ( CD 43 ) ( NNS planes ) ) ) ( PP-TMP ( IN by ) ( NP ( CD 1991 ) ) ) ( ADVP ( RB up ) ( PP ( IN from ) ( NP ( NP ( CD 30 ) ) ) ( PP-TMP ( IN at ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( JJ last ) ( NN year ) ) ) ) ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NNP Sun ) ( NNP Hung ) ( NNP Kai ) ( NNPS Securities ) ( NNP Ltd ) ) ) ) ) ) )

The expansion which could cost as much as 5.7 billion over the next eight years will expand the fleet to about 43 planes by 1991 up from 30 at the end of last year according to Sun Hung Kai Securities Ltd


( S ( NP-SBJ-1 ( DT The ) ( JJ fuel-efficient ) ( NNP Airbus ) ( NNS planes ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN used ) ( ADVP ( RB largely ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB replace ) ( NP ( NP ( NP ( NNP Cathay ) ( POS 's ) ) ( VBG aging ) ( NN fleet ) ) ( PP ( IN of ) ( NP ( NNP Lockheed ) ( NNPS Tristars ) ) ) ) ( PP ( IN for ) ( NP ( JJ regional ) ( NNS flights ) ) ) ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ-2 ( DT the ) ( NNP Boeing ) ( NN aircraft ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN used ) ( PP-LOC ( IN on ) ( NP ( NP ( JJ long-haul ) ( NNS routes ) ) ( PP ( TO to ) ( NP ( NP ( NNP Europe ) ) ( CC and ) ( NP ( NNP North ) ( NNP America ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The fuel-efficient Airbus planes will be used largely to replace Cathay 's aging fleet of Lockheed Tristars for regional flights while the Boeing aircraft will be used on long-haul routes to Europe and North America


( S ( NP-SBJ ( NNP Cathay ) ) ( ADVP ( RB also ) ) ( VP ( VBZ is ) ( VP ( VBG moving ) ( NP ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( JJ labor-intensive ) ( NN data-processing ) ( NNS operations ) ) ) ) ( PP-LOC-CLR ( IN outside ) ( NP ( NNP Hong ) ( NNP Kong ) ) ) ) ) )

Cathay also is moving some of its labor-intensive data-processing operations outside Hong Kong


( S ( NP-SBJ ( NP ( JJ Fierce ) ( NN bidding ) ) ( PP ( IN for ) ( NP ( JJ young ) ( NNS employees ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP Hong ) ( NNP Kong ) ) ) ) ( VP ( VBZ is ) ( VP ( VBG pushing ) ( PRT ( RP up ) ) ( NP ( NP ( NNP Cathay ) ( POS 's ) ) ( NN labor ) ( NNS costs ) ) ( PP ( IN by ) ( NP-EXT ( NP ( CD 20 ) ( NN % ) ) ( NP-ADV ( DT a ) ( NN year ) ) ) ) ( PP ( IN for ) ( NP ( JJ low-level ) ( NN staff ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( JJ experienced ) ( JJ skilled ) ( NNS employees ) ) ( VP ( VBP are ) ( VP ( VBG leaving ) ( NP ( DT the ) ( NN colony ) ) ( PP ( IN as ) ( NP ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN brain ) ( NN drain ) ) ) ) ) ) ) ) ) ) ) )

Fierce bidding for young employees in Hong Kong is pushing up Cathay 's labor costs by 20 % a year for low-level staff while experienced skilled employees are leaving the colony as part of the brain drain


( S ( S ( NP-SBJ-1 ( DT Some ) ( NNS jobs ) ) ( ADVP-TMP ( RB already ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBN moved ) ( PP-DIR ( TO to ) ( NP ( NNP Australia ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( EX there ) ) ( VP ( VBP are ) ( NP-PRD ( NNS plans ) ( S ( VP ( TO to ) ( VP ( VB place ) ( NP ( NNS others ) ) ( PP-LOC-CLR ( IN in ) ( NP ( NNP Canada ) ) ) ) ) ) ) ) ) )

Some jobs already have been moved to Australia and there are plans to place others in Canada


( S ( NP-SBJ ( NP ( NNP David ) ( NNP Bell ) ) ( NP ( NP ( DT a ) ( NN spokesman ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN airline ) ) ) ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ-1 ( DT the ) ( NN move ) ) ( VP ( VBZ is ) ( VP ( ADVP ( RB partly ) ) ( VBN aimed ) ( PP-CLR ( IN at ) ( S-NOM ( VP ( VBG retaining ) ( NP ( NP ( VBG existing ) ( NN staff ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBP are ) ( VP ( VBG leaving ) ( S-PRP ( VP ( TO to ) ( VP ( VB secure ) ( NP ( JJ foreign ) ( NNS passports ) ) ( PP ( RB ahead ) ( PP ( IN of ) ( NP ( CD 1997 ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

David Bell a spokesman for the airline says the move is partly aimed at retaining existing staff who are leaving to secure foreign passports ahead of 1997


( S ( NP-SBJ-1 ( NNP Cathay ) ) ( VP ( VBZ is ) ( VP ( VBG working ) ( S ( VP ( TO to ) ( VP ( VB promote ) ( NP ( NNP Hong ) ( NNP Kong ) ) ( PP-CLR ( IN as ) ( NP ( NP ( NP ( DT a ) ( NN destination ) ) ( PP ( JJ worth ) ( S-NOM ( VP ( VBG visiting ) ( PP ( IN on ) ( NP ( PRP$ its ) ( JJ own ) ( NNS merits ) ) ) ) ) ) ) ( PP ( RB rather ) ( IN than ) ( NP ( RB just ) ( DT a ) ( NN stopover ) ) ) ) ) ) ) ) ) ) )

Cathay is working to promote Hong Kong as a destination worth visiting on its own merits rather than just a stopover


( S ( SBAR-ADV ( IN Although ) ( S ( NP-SBJ ( NP ( DT the ) ( NNP June ) ( CD 4 ) ( NNS killings ) ) ( PP-LOC ( IN in ) ( NP ( NNP Beijing ) ) ) ) ( VP ( VBP have ) ( VP ( VBN hurt ) ( NP ( PRP$ its ) ( NNP China ) ( NNS flights ) ) ) ) ) ) ( NP-SBJ ( NP ( NNP Cathay ) ( POS 's ) ) ( JJ other ) ( NNS routes ) ) ( VP ( VBP have ) ( VP ( VBN retained ) ( NP ( JJ high ) ( NN load ) ( NNS factors ) ) ) ) )

Although the June 4 killings in Beijing have hurt its China flights Cathay 's other routes have retained high load factors


( S ( NP-SBJ ( NNP Mr. ) ( NNP Eddington ) ) ( VP ( VBZ regards ) ( S ( VP ( VBG promoting ) ( NP ( NNP Hong ) ( NNP Kong ) ) ) ) ( PP-CLR ( IN as ) ( NP ( NP ( DT an ) ( JJ important ) ( NN part ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG attracting ) ( NP ( NNS visitors ) ) ( PP ( IN from ) ( NP ( NP ( NP ( NNP Japan ) ) ( NP ( NNP South ) ( NNP Korea ) ) ( CC and ) ( NP ( NNP Taiwan ) ) ) ( SBAR ( WHADVP-1 ( WRB where ) ) ( S ( NP-SBJ ( NP ( DT the ) ( NN number ) ) ( PP ( IN of ) ( NP ( NP ( NNS people ) ) ( VP ( VBG looking ) ( S ( VP ( TO to ) ( VP ( VB travel ) ( ADVP-LOC-CLR ( RB abroad ) ) ) ) ) ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN surged ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Eddington regards promoting Hong Kong as an important part of attracting visitors from Japan South Korea and Taiwan where the number of people looking to travel abroad has surged


( S ( NP-SBJ ( EX There ) ) ( ADVP ( RB also ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( NP-PRD ( NN speculation ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP Cathay ) ) ( VP ( MD will ) ( VP ( VB be ) ( PP-PRD ( IN among ) ( NP ( NP ( DT the ) ( JJ major ) ( NN private-sector ) ( NNS participants ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NNP Hong ) ( NNP Kong ) ( NN government ) ( POS 's ) ) ( NNS plans ) ( S ( VP ( TO to ) ( VP ( VB build ) ( NP ( DT a ) ( JJ new ) ( NN airport ) ) ) ) ) ) ) ) ) ( PP ( IN with ) ( S-NOM ( NP-SBJ ( DT the ) ( NN carrier ) ) ( VP ( ADVP ( RB possibly ) ) ( VBG investing ) ( PP-CLR ( IN in ) ( NP ( PRP$ its ) ( JJ own ) ( NN terminal ) ) ) ) ) ) ) ) ) ) ) ) ) )

There also has been speculation that Cathay will be among the major private-sector participants in the Hong Kong government 's plans to build a new airport with the carrier possibly investing in its own terminal


( S ( NP-SBJ-1 ( NNP Cathay ) ( NNS officials ) ) ( VP ( VBP decline ) ( S ( VP ( TO to ) ( VP ( VB comment ) ( PP-CLR ( IN on ) ( NP ( DT the ) ( NN speculation ) ) ) ) ) ) ) )

Cathay officials decline to comment on the speculation


( S ( NP-SBJ ( NNP Mr. ) ( NNP Eddington ) ) ( VP ( VBZ sees ) ( NP ( NP ( NNS alliances ) ) ( PP ( IN with ) ( NP ( NP ( JJ other ) ( NNS carriers ) ) ( PRN ( NP ( NP ( RB particularly ) ( NP ( NNP Cathay ) ( POS 's ) ) ( JJ recent ) ( NN link ) ) ( PP ( IN with ) ( NP ( NP ( NNP AMR ) ( NNP Corp. ) ( POS 's ) ) ( NNP American ) ( NNPS Airlines ) ) ) ) ) ) ) ) ( PP-CLR ( IN as ) ( NP ( NP ( DT an ) ( JJ important ) ( NN part ) ) ( PP ( IN of ) ( NP ( NP ( NNP Cathay ) ( POS 's ) ) ( NN strategy ) ) ) ) ) ) )

Mr. Eddington sees alliances with other carriers particularly Cathay 's recent link with AMR Corp. 's American Airlines as an important part of Cathay 's strategy