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. - (' '-) constituted about 18% of the typical a percentage of the overall US econo- Movie Multiplexer family's financial portfolio. my, it has tripled during the past five ,:; ;-,From Mark Riely .- :_ __ _ Today, these baby-boomer families years.My favorites stocks now... C'- i L $$$Carmike ,Inc.,is are in their prime years for saving and 0 Intel Corp.is the premier produ- the largest movie chain in the US, investing, preparing for long-term ser of microprocessor chips.It is committed :�- with 2,500 screens.Theaters are goals. Declining inflation...the 1986 to research and development,which fuels `4'� located mainly in the South and change in the tax code...and the fact growth, and has fabulous products. NAS- Southeast.The company is growing quick- that many baby boomers already own DAQ:INTC.Recent share price:$1463/. ly by building new theaters and replacing homes have reduced the appeal of 0 Silicon Graphics'product cycle old theaters with multiplexes containing s disappointing in 1996 but should be 12 to 16 screens.This allows Carmike to tangible investments. show more movies...have theaters of dif- At the same time, many companies ;strengthening this year NYSE:SGI.Recent ferent sizes to accommodate interest in have shifted from the old defined-benefit share price:$241/2. different films.hand use multiple screens retirement programs to defined-contri Another favorite sector is financial to show the same film at staggered times. bution approaches that encourage work- services.There's a great deal of activity That reduces bottlenecks at the conces- ers to save for their own retirements. in that sector in terms of earnings .sion stands,where Carmlke makes most Stocks,including mutual funds, now growth,change and consolidation. of its money. .-.. Besides being a fast-growing market Movie theaters are relatively mature comprise about 30%of households'dis area, financial services is an under- businesses, and consolidation is under a etionary financial portfolios.This corn- businesses, valued sector,selling at low price/earn- way. rice/earnway. This is very good for Carmike— pares with about 45%in the late 1960s. ings ratios relative to the rest of the which can buy up smaller,overleveraged MY CONCERNS market.Two of my favorite stocks... companies. But its overall earnings are With wage pressures rising some- C Citicorp has recovered from its till- growing more than 20%a year,even with what,inflation could become a problem ficulties of the 1980s and gone on to become out acquisitions. NYSE:CKE,Columbus,Georgia.Recent share down the road,but we see only a mild a real powerhouse when it comes to provid- price:S2714.Fiscal year. December.Earnings per updrift this year. Labor productivity ing banking services to multinational corpo- share:1998 estimate/$275...1997 estimate/$225 continues to rise and offers an impor- rations and consumers around the world. ...1996/$135. NYSE:CCI.Recent share price:$118%9. Mark Riely is president of Media Group Research tant offset. Low inflation expectations 260 W.Broadway,New York 10013.The firm manages have meant great resistance to price in- C Travelers Group Inc.is the hold- capital oldcapital for very-high-net-worth individuals and provides creases in most areas of the economy. ing company for several financial services research for major institutional clients. -- Federal Reserve Chairman Alan companies.The group includes Smith B Greenspan recently suggested interest ney,Travelers Insurance and a number. other promising finanaal services properties. Medical Manufacturer rates may rise.If so,we think that such NYSE:TRV.Recent share price.•$52%. From Michael Gianturco_ increases would be modest and unlike- Another company benefiting from ex SSS Kensey Nash Corp.r C lytohavemorethanatransitoryimpact posuretothevigorousUSeconomy makes an important medical de- on stock prices. C Delta Air Lines. Its yield has im vice—called an Angio-Seal— Problems in Japan worry some am- used proved as more seats are sold on all flights. used by cardiologists and radiol- lysts,who fear that it could turn into a Earnings are growing through a combination ogists who perform catheterizations.Most black hole that might envelop world of improved market share and cost controL of the six million of these procedures done financial markets.We disagree. NYSE:DAL Recent share price:$83'/. ■ each year use the femoral artery in the While low growth in Japan will have upper thigh. Patients tend to bleed after an impact on the US—since its imports - W the procedure, so they must stay maydecrease while its exports in- •'_: __vitamin B-12 Alert overnight in the hospital for observation. p Kensey Nash's device closes the hole creasehe-impact will be limited. jndividu;'- ••- -t -made in the artery,so that less medical at Japan is addressing its banking prob- need to supplement their diets tendon is required and the patient can go lems,so most of the risks have come out with at least 25 micrograms a day of home the day of the operation,sharply re- of the market.What has changed is that vitamin B-12. ducing health care costs. many American investors have just no- Take vitamin B-12 in tablets by it- The tThe device received FDA approval last ticed Japan's economic problems. self—or combined with folic acid. September and costs less than$250.Man- Continental Europe also has been un- Don't take it in tablets that include ufacturing and marketing are being done able to generate substantial economic other vitamins or minerals. Reason: by health care giant American Home growth,and unemployment is high.This When the pills dissolve in your stom- Products.Caution:Single-product compo- neitherJapan nor means Europe will hies—and all medical-device firms—canash,the vitamin B-12 is destroyed be high-risk investments. help US economic growth early this year, Important:Do not take other NASDAQ:KNSY,Exton,Pennsylvania Recent but we expect gradual recovery: vitamins prescribed for you by a share price:$13'/4.Fiscal year:June.Earnings per So US global economic leadership is health professional within one hour of share: 1998 estimate/$0.77...1997 estimate/ clear again this year...and that's reflect Lakin vitamin B-12. S0.15...1996/($1). ed in the recent strength of the dollar. Victor Herbert MD,director of the hematology Michael Gianturco is president of The Princeton Portfolios,82 Wall St..New York 10005.For the five WHERE TO DIVEST NOW and nutrition laboratory at Mt.Sinai School of i" years through December 31.1996,the portfolios had an Medicine.New York.and editor of Total Nutrition: annualized rate ofreturn of26%.compared with 19.9%for Technology is still one of my fa- The Only Guide You'll Ever Need(St.Martin's the S&P 500 Index. _- - ---- vorite sectors.It is fast-growing and,as Press/$16.95). Bottom Line • PERSONAL APRIL 1, 1997