Monster Media 1993 #2/Image.iso/finance/dj0730.zip/DOW

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                                                                                          */UK,20/XON,22/CHV,24
╓─────────────────────────────────────────────────────────────────────────────╖
║              Random Walk Investment BBS's HIGH YIELD MAGAZINE               ║
╟───────────────────────────╥─────────────────────╥───────────────────────────╢
║                           ║  For July 30, 1993  ║                           ║
║                           ╙─────────────────────╜                           ║
║                                                                             ║
║       Random Walk's DOW HIGH YIELD MAGAZINE  .........................   2  ║
║       What is high yield investing?  .................................   4  ║
║       Dow High Yield Portfolios Started Nov 1, 1992  .................   8  ║
║       Market Summary - NYSE (Alt-X NY for chart)                            ║
║                      - DJIA (Alt-X DJ for chart)  ....................   9  ║
║       Eastman Kodak (Alt-X EK for chart)  ............................  12  ║
║       Westinghouse (Alt-X WX for chart)  .............................  14  ║
║       American Express (Alt-X AXP for chart)  ........................  15  ║
║       General Motors (Alt-X GM for chart)  ...........................  17  ║
║       Union Carbide (Alt-X UK for chart)  ............................  20  ║
║       Exxon (Alt-X XON for chart)  ...................................  22  ║
║       Chevron (Alt-X CHV for chart)  .................................  24  ║
║       IBM (Alt-X IBM for chart)  .....................................      ║
║       Sears (Alt-X S for chart)  .....................................      ║
║       Texaco (Alt-X TX for chart)  ...................................      ║
╙─────────────────────────────────────────────────────────────────────────────╜







                         Dow High Yield Magazine

      Please note that all information provided in the magazine is for
informational purposes only and is not to be construed as buy and sell
recommendations.

      If you have an interest in investments you are invited to give Random
Walk Investment BBS a call in the Toronto area at 416 274-2381. Although
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your PC.  Although data is also available, there is no need to
download data when the charts are available.  There is also a fair
bit of economic, index, index sector, interest rate, and currency
data.



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                        The Dow High Yield Investing Approach

The essence of this program is to buy the ten highest yielding stocks of the
Dow 30 stocks.  A variation is to buy the five lowest priced of the 10
highest yielding Dow 30 stocks.

The thirty year results of this program have been extraordinary. With a better
than fifteen percent annual rate of return, on paper the monies invested before
taxes would have grown more than 64 times. In a paper trial for period December
31, 1959 to December 31, 1991 a one hundred thousand dollar investment would
have grown to $10,576,519 before any taxes.

Why does the Dow High Yield (DHY) technique work?
─────────────────────────────────────────────────

It is based on the fact that the Dow 30 stocks have an incredibly stable
dividend payout history, i.e., they rarely cut their dividends during periods
of poor earnings. Because large institutions tend to buy and sell stocks on
earnings and earnings expectations, a Dow 30 stock with poor earnings will see
its price drop as institutions sell it. Its yield will rise because the
dividend is maintained.  The high yielders are bought when institutions have
sold the stock and driven down its price. This is the a great contrarian
approach to investing - buy when the institutions hate the stock and sell when
they love it.   When the stock price begins to rise there is often an added
bonus as improved earnings lead to a dividend increase.  Mutual funds can't use
the technique because they are required to be more diversified than the DHY
permits.   Periodically,  a high yielding stock DOES have its dividend cut. The
most recent example is IBM.   A simple way of avoiding this problem is to
determine how many times the dividend is covered by cash flow. In the case of
IBM, its cash flow was not covering its dividend and had not been doing so for
2 years.  With no improvement in cash flow, a dividend cut was inevitable.  It
is even possible to estimate what the new dividend might be by examining cash
flow.

How does the DHY technique work?
────────────────────────────────

At any month end (the returns over the past 25 years confirm that there is no
one month that is any better than another),  go through the stock quote pages
of your newspaper writing down the closing price and the yield.  If the paper
does not list the yield, write down the dividend and calculate the yield by
dividing the dividend by the price.  Make sure that the dividend is the annual
payout and does not include any special payouts.  Rank the 30 stocks in
descending order based on yield.  Select either the 10-stock portfolio or the
5-stock portfolio, call your discount broker, and buy equal dollar amounts of
each stock.

One year later repeat the exercise and rebalance the portfolio.  Some stocks
will be sold;  some will be kept;  some will be kept and added to.


Many questions have arisen since I first started this program:

1.  What happens if the dividend is cut?

    Continue holding the security for one year after purchase. Since 1960
    there have been twelve dividend cuts, GM three times, and yet, in many
    cases the stock price has gone up after the dividend cut.

2.  What happens if the stock is taken off the Dow Jones Industrials?

    Continue holding the stock for one year after purchase.Most recently USX,
    Primeamerica, and Navistar were dropped from the Dow in May, 1991. Only
    USX had been in top ten yielders recently. As of April 1991, the price of
    the old USX is up, as are the prices of Primeamerica and Navistar. In the
    past when Chrysler and Johns Manvill were take off the prices were higher
    a year later. In both cases the dividend had been eliminated.

3.  What happens if the stock is split or has an asset spinoff?

    Keep all of the post split shares or spinoff shares until it is time to
    rebalance the portfolio.

5.  What about cash dividends?

    Invest them in money market fund.

5.  I do not have much money to start, and therefore can not buy round lots?

    Do not worry.  Buy whole shares.  The odd lot differential is not a major
    hurdle and will not radically affect the long term results.  It is
    possible to use the DHY with as little as $5,000.

6.  Where can I learn more about the DHY technique?

    Beating the Dow.  A High-Return, Low-Risk Method for Investing in the Dow
    Jones Industrial Stocks with as Little as $5,000.  Michael O'Higgins with
    John Downes.  HarperCollins, 1991.  ISBN 0-06-016479-4

    The Dividend Investor.  A Safe Sure Way to Beat the Market.  Harvey C.
    Knowles III & Damon H. Petty.  Probus Publishing Company, Chicago, 1992.
    ISBN 1-55738-243-3






















┌────────────────────────┬─────────────────────┬──────────────────────────────┐
│Date:          30-Jul-93│    TOP FIVE (*)     │    TOP TEN (*)               │
│  DOW HI YIELD PORTFOLIO│NAV/Shr:     14.0920 │NAV/Shr:      12.7639         │
│                        │Yr-to-date:    32.86%│Yr-to-date:     26.15%        │
│Start:  Nov 1/92        │From start:    40.92%│From start:     27.64%        │
│                        │Month:          2.80%│Month:           2.13%        │
│                        │Vs DJ30:        4.81 │Vs DJ30:         3.25         │
├────────────────────────┴─────────────────────┴──────────────────────────────┤
│ Shares         Security        Cost    Price        Mkt Val  Asset%  Yield  │
├─────────────────────────────────────────────────────────────────────────────┤
│  1,550 Westinghouse *     20,088.25   15.750      24,412.50    9.56%  2.54% │
│  1,350 Union Carbide *    19,863.75   18.750      25,312.50    9.92%  4.00% │
│    935 Amer Express *     20,090.08   32.625      30,504.38   11.95%  3.07% │
│    650 General Motors *   20,078.50   48.500      31,525.00   12.35%  1.65% │
│    485 Eastman Kodak *    19,902.18   53.625      26,008.13   10.19%  3.73% │
│        Dividends                       -           3,189.20    1.25%        │
│                          ----------              ----------                 │
│                          100,022.76              140,951.70                 │
│    330 Texaco             19,865.40   62.875      20,748.75    8.13%  5.09% │
│    475 Sears              20,027.00   50.125      23,809.38    9.33%  3.19% │
│    144 Dean Witter                    37.250       5,364.00    2.10%        │
│    325 Exxon              19,971.24   65.625      21,328.13    8.35%  4.38% │
│    300 IBM                20,125.50   44.500      13,350.00    5.23%  2.25% │
│    280 Chevron            19,941.40   88.375      24,745.00    9.69%  3.96% │
│        Cash                   46.70    -              46.70    0.02%        │
│        Dividends                       -           4,933.35    1.93%        │
│                          ----------              ----------   -----         │
│                          200,000.00              255,277.00  100.00%        │
└─────────────────────────────────────────────────────────────────────────────┘



                07/30/93    STOCK INDEXES & INDICATORS
 DOW JONES                HIGH      LOW     LAST   CHANGE       NYSE      000s
  30 INDUSTRIALS   .... 3567.70  3530.81  3539.47*  -27.95    +VOLUME   104475
  20 TRANSPORTATION.... 1614.46  1594.15  1613.81*  +19.66    -VOLUME   115378
  15 UTILITIES     ....  250.92   248.95   250.00*   -0.86    TOTAL     254394
  65 COMPOSITE     .... 1322.62  1313.73  1317.95*   -1.15     NYSE
 S&P 500           ....  450.22   446.98   448.13*   -2.11    ADVANCES     925
 S&P 100           ....  416.33   413.12   414.41*   -1.91    DECLINES    1008
 S&P 400 MIDCAP    ....  167.51   167.11   167.44*   -0.07    UNCHANGED    639
 MAJOR MARKET      ....  363.25   358.93   360.10*   -3.15    NYSE TICK   +486
 NYSE COMPOSITE    ....  249.38   247.93   248.49*   -0.85    NYSE TRIN   1.01*
  FINANCIAL        ....  221.81   220.40   220.98*   -0.76
 NASDAQ COMPOSITE  ....  706.54   702.37   704.70*   -2.54    AMEX
  INDUSTRIAL       ....  719.93   714.59   717.14*   -4.16    TOTAL VOL  18824
  BANKING          ....  649.06   644.17   648.82*   +4.01    ADVANCES     298
  INSURANCE        ....  897.64   891.50   894.84*   +3.05    DECLINES     257
  NMS COMPOSITE    ....  312.43   310.53   311.52*   -1.25
 AMEX COMPOSITE    ....  437.18   435.71   437.00*   +0.41
 VALUE LINE (GEO)  ....  278.82   277.90   278.42*   -0.41
 VALUE LINE (ARITH)....  420.07   418.77   419.58*   -0.51
 GOLD/SILVER       ....  129.56   127.52   128.90*   +2.51
 AMEX OIL INDEX    ....  256.49   254.69   256.02*   -0.43
07/30/93   New highs and lows: NYSE: 98-36  AMEX: 27-20  NASDAQ: 120-53
           Alt-X NY for NYSE chart and Alt-X DJ for DJIA chart



   Stocks declined Friday on Wall Street, but the Dow Jones industrial
average exaggerated the extent of the decline.  The Dow fell 27.95 to close
at 3539.47.  Declines led advances by a slim 1008-925 margin on the New York
Stock Exchange.  Adjusted volume was 250,380,700 shares.
   The NASDAQ compositeRindex was down 2.54 to 704.70, due in part to a
5-point tumble in Microsoft, to 74.  Advances led declines on NASDAQ,
1437-1286, in volume of 255,657,750 shares.
   The Wilshire 5000 fell $14.942 billion to $4,443.280 billion.
   Microsoft was downgraded from Merrill Lynch.  Late  Thursday,  the  company
said  it  expects continumd downward pressure on its software prices in fiscal
yeav 1994 because of competitors' steep price cuts.
   UAL was up 5 to 144. It posted better-than-expected second-quarter earnings
of 54 cents a share Thursday, and was subsequently upgraded by Salomon Bros.
   General  Motors  was  up  1  to  48  1/2  after  a rating upgrade from S.G.
Warburg.  GM reported improved second-quarter results Thursday.
   3M was down 3 3/4 to 105 after reporting second-quarter earnings of $1.51 a
share, up from $1.45 a year ago but slightly off expectations of $1.52.
   Merck was up 1/8 to 30 5/8. The Wall Street Journal said Merck's  agreement
to merge with Medco Containment Services is not expected to trigger aggressive
scrutiny  by  the Clinton administration because the deal is nearly certain to
intensify price competition amone drug makers.
   The Dow theoretical intraday high and low Friday: 3581.11; 3515.72.
  Ron Doran, director of institutional trading at C.L. King &  Associates  in
Albany,  N.Y., said the currency ``turmoil in Europe'' sparked a sharp rise in
gold prices, which ``could fuel possible inflationary pressure.''
   The August contract for gold soared  9.20 to $407 an ounce  -  its highest
level since January 1991.
   Nevertheless, profit-taking hit selected mining issues, particularly silver
mining stocks.  Sunshine Mining was down 1/8 to 3 3/8 and Coeur d'Alene fell
1/2 to 23 1/4.
   RJR Nabisco Holdings eased 1/8 to 5. On Thursday, it reported second-quarter
earnings of 6 cents a share compared with 7 cents a year ago.
   Disney was down 1 1/8 to 37 1/2 after  an  analyst  said  that  theme  park
attendance in 1992 was indirectly aided by abnormally low air fares.
    A.L.  Labs tumbled 9 to 14 5/8 after a long trading halt was  lifted.  The
drug  company,  which  earns a substantial part of its revenues overseas, said
that 1993 earnings from continuing operations will  probably  trail  those  of
1992, due in part to foreign currency weakness.
   Placer Dome was up 3/8 to 22 1/8 in active trading, as gold and silver
prices rallied in response to turmoil in European currency markets.
   Aetna was fell 1 5/8 to 58 3/8. It posted second-quarter net income of
$1.32 a share, topping estimates of about $1.11 a share.
   Granite Construction fell 3/4 to 17 1/4 after it said that fourth-quarter
net income will trail expectations.
   Brooke Group fell 1 3/8 to 3 3/4 after negative coverage of chairman
Bennett LeBow in the Wall Street Journal.














                               EASTMAN KODAK
                            (Alt-X EK for chart)

              7/30/93 52-Wk-Rng FY/Q  EPS93  EPS94 PE94 NxtQtr LyQtr
Eastman Kodak   53.62   56-39   12/3   3.70   4.60 11.4  **.** **.** EK

1.  Second-quarter earnings of $1.13 vs. $1.11 a year ago were higher than
some analysts' $1.10 estimate and consensus forecast of $1.06.

2.  Second-quarter earnings included a $0.04-per-share charge for the early
retirement of debt.

3.  A $79-million positive operating profit swing in the information group
was responsible for the stronger-than-anticipated quarter.

Kodak's second-quarter operating profits (including the chemicals group,
which is scheduled to spin off at year end) rose $75 million to $823
million.  The positive comparison was essentially due to a $79-million
swing in the information group's profits from a loss of $31 million a year
ago to a $48 million profit.  Film volume was essentially flat in the
quarter, which resulted in a 2% decline in imaging group profits.  Chemical
group sales and operating profits rose 6%.  The performance of the health
group was disappointing.  Sales rose 5%, while operating profits were off
2%.  Higher research and development spending on ethical drugs, increased
promotional spending to launch Bayer Select, and some sluggishness in sales
reflecting concern over healthcare spending hurt the earnings comparison.
On balance, analysts were encouraged by the quarter since it demonstrated
Kodak's cost cutting efforts are beginning to impact the bottom line.  This
was particularly evident in the information group, where profits rebounded
$79 million on a 5% sales decline.  Analysts believe that further cost
cutting and more disciplined utilization of cash flow should be the two key
elements of Kodak's turnaround effort.

In the past, management has indicated Kodak's capital expenditures should
be aligned more closely with depreciation.  In 1992, Kodak's capital
expenditures equaled $2.09 billion versus $1.39 billion in depreciation.
This latter number excludes amortization of $146 million.  For the first
half of 1993, Kodak's capital expenditures were $739 million versus $1016
million last year.  Depreciation was $553 million versus $585 million a
year ago.  In 1993, capital expenditures should approximate $1.6 billion
versus depreciation of $1.3 billion.  The excess cash generated by the
reduction in capital expenditures will be utilized to repay debt.
















                        WESTINGHOUSE ELECTRIC CORPORATION
                              (Alt-X WX for chart)

              7/30/93 52-Wk-Rng FY/Q  EPS92  EPS93 PE93 NxtQtr LyQtr
Westinghouse    15.75   17-9    12/3   0.93   0.90 17.9   0.20  0.22

1)  Analysts continue to rate Westinghouse shares market
underperformers.  Second quarter earnings declined 31% to $0.20 versus
$0.29.  Weak order trends in the defense and environmental services
areas, coupled with a sluggish economy, underlie the earnings
revisions.  Analysts expect a third quarter comparison of $0.20 versus
$0.22.

2)  In the quarter, only three business units posted earnings gains:
Industrial repair services, Power generation, and Thermo-King.  Industrial
benefitted from a depressed comparison and reduced costs, while Power
generation also had lower costs.  Interestingly, all three units recorded
declining sales.

3)  Good progress was made on selling off financial services assets in the
quarter.  Westinghouse ended the quarter with net assets of $2.04 billion
in this area, and outstanding committments of $523 million.  During the
quarter, it is estimated that parent company net debt rose modestly.






                             AMERICAN EXPRESS
                          (Alt-X AXP for chart)

              7/30/93 52-Wk-Rng FY/Q  EPS93  EPS94 PE94 NxtQtr LyQtr
American Expr   32.63   34-20   12/3   2.70   3.00 11.4   0.67 -0.45

             Q1          Q2           Q3           Q4
            XXX         XXX          XXX          XXX

1994                                                            3.00
1993       0.49A        0.83A        0.67         0.71          2.70
1992       0.51A        0.63A       (0.45)A       0.15A         0.83

* Raise 1994 to $3.00 from $2.60 and raise this year's expectations to
$2.70 from $2.40.

* Second quarter earnings beat analysts' expectations by $0.21, and reported
earnings of $0.83 vs. $0.63 advanced 34% and were the company's best ever.

* Stock is now selling at 11.5 to 12 times 1994 estimate.

1.)  Second quarter earnings of $0.83 were better across the board than
expected.  TRS earned $234 million vs. $124 million a year ago, a
somewhat better earnings performance than we had expected on sharply lower
loss provisioning and reduced operating expenses.  Revenues as expected
were down slightly on a continued reduced cardmember base and sharply lower
merchant discount fees.  Shearson-Lehman brokers earned $121.5 million,
though only $95 million of this is attributed to the portion of the company
(Lehman Brothers) which will remain with American Express following the
previously announced sale of Shearson to Smith Barney.

2.) There is no doubt that the new management has had a beneficial impact
on the company and its stock price.  While recent quarters have been
adversely impacted by special charges, asset quality issues, and rising
uncertainty this quarter contained nothing extraordinarily unusual, though
analysts caution against annualizing second quarter growth in assessing the
company's earnings power going forward.  First, $0.05 per share of the
$0.83 reflects earnings of operations which will be sold.  Secondly, TRS
earnings are now benefiting from a decline in reserves as the company
reduces its provision for losses while non-performers at Optima have
charged off and declined significantly from extremely high levels.  Thus
TRS' strongest seasonal quarter are usually the second and third quarter
IDS posted an extremely strong quarter with earnings gains at 23%.
















                        GENERAL MOTORS CORPORATION
                           (Alt-X GM for chart)

              7/30/93 52-Wk-Rng FY/Q  EPS93  EPS94 PE94 NxtQtr LyQtr
General Motor   48.50   49-28   12/3   1.25   4.00 11.8  -0.50 -1.86 GM

52 Wk           EPS                   P/E              Ind.
Range     1992    1993E   1994E      1993    1994      Div.    Yield
=====     ====    =====   =====      ====    ====      ====    =====
$49-$29   -3.02   $1.25   $4.00       37.6X   11.8X    $0.80     1.7%

*  Increasing in 1993 estimate to $1.25 from $1.00.
*  No change in 1994 estimate or market performer rating.
*  Good 2Q results, but generally in line with our expectations.

GM REPORTED SECOND QUARTER RESULTS OF $0.92 PROFIT VERSUS $0.22 LOSS A YEAR
AGO.  Results were essentially in line with street consensus of $0.86.
Second quarter results were clean with no unusual items.  Analysts have
increased their 1993 estimate to $1.25 per share from $1.00.  The increase
reflects slightly higher variable profit levels for North American vehicle
sales.  Cost reduction efforts in North America automotive (NAO) was the key
element driving GM's operating improvement. The North American Automotive
operation continues to move in the right direction, albeit from a depressed
base.  THe key concerns with NAO remain future products, potential
market-share vulnerability, and an entrenched UAW.  Little improvement is
expected in Europe in the intermediate term.  A more positive outlook in
these areas could lead analysts to take a more aggressive view on the stock.

SHARP TURN IN OPERATING PROFITS TO $977 MILLION IN SECOND QUARTER FROM $304
MILLION A YEAR AGO.  Total revenues increased 2.8% to $32.9 billion and
automotive related revenues increased 1.8% to $29.4 billion.  A 3.5%
decline in volume was more than offset by a 5.4% increase in pricing
(revenue per unit).  Total gross margin (pre pension expense) increased to
17.2% from 15.1% a year ago.  In the automotive segment, gross margin
increased to 16.4% from 14.1% a year ago.  The improvement reflected cost
reduction efforts in North America.  Retail incentives declined to $850 per
vehicle from $1,030 a year ago and $940 in the first quarter.  Fleet sales
also declined (27% of total U.S. sales versus 31% a year ago), as GM
continued to curtail sales to daily rental car companies.  Largely
reflecting the declining fleet activity, GM's market share dropped to 34.6%
in 2Q versus 35.1% a year ago.

TURNAROUND IN NORTH AMERICAN AUTOMOTIVE DRIVES YEAR OVER YEAR IMPROVEMENT.
GM reported a net loss in NAO of $95 million versus a $761 million loss a
year ago.  Somewhat surprisingly, International automotive results improved
($368 million profit versus a $284m profit a year ago), with weaker, but
still profitable European results more than offset by strength in South
America (primarily Brazil).  Results in GM's non-automotive subsidiaries
(EDS, Hughes, and GMAC) were essentially in line with expectations.

POSITIVE CASH FLOW IN SECOND QUARTER.  Cash balances increased to $9.1
billion from $8.4 billion in the first quarter.  GM's debt to capital ratio
was flat at 55.8% versus first quarter levels.  A key issue remains the
magnitude of GM's unfounded pension liability, which stood at $14.0 billion
at yearend 1992 (versus $10.6 billion in 1991).  GM indicated, without
specifics, that it plans to make significant contributions to the pension
fund over the next six years.  Pension expenses are running slightly ahead
of our projections, with $2.5 billion likely in 1993 versus our prior $2.3
billion estimate and $2.0 billion in 1992.

1993 OUTLOOK BY SEGMENT.  Analysts' 1993 estimates of $1.25 per share are
consistent with GM's NAO doing slightly better than their targeted break-
even EBIT goal.  Net income by segment forecast for 1993 follows: NAO
automotive ($1.3 billion loss vs $4.9 billion loss in 1992); Int'l automotive
($900 million profit vs $1.2 billion a year ago); GMAC ($1.0 billion profit
vs $1.2 billion); and EDS and Hughes ($1.6 billion profit vs $1.3 billion).




















                               UNION CARBIDE
                            (Alt-X UK for chart)

              7/30/93 52-Wk-Rng FY/Q  EPS93  EPS94 PE94 NxtQtr LyQtr
Union Carbide   18.75   20-12   12/3   0.90   1.25 15.0   0.21  0.18 UK

1.  2Q EARNINGS OF $0.24 WERE BETTER THAN ANALYSTS' ESTIMATES largely due to
higher income from companies in which Carbide had an equity position and due to
lower "other expense" and lower depreciation.  EBITD from core operations was
actually lower than expected by $11 million.  In aggregate a roughly $7 million
pretax loss from an asset sale was largely offset by unusually low depreciation
and interest expense.  Carbide expects these last two items to revert to higher
levels in the second half of 1993 compared to the second quarter levels.

2.  The recently completed sale of the silicons business will have a net- net
dilutive effect of $0.03-$0.04 per share each quarter compared to the first and
second quarters of 1993.  While that business earned very little in last year's
first half, it has been a very good contributor year to date, thus next year's
first half will have a tougher comparison year over year.

3.  Core business trends remain weak contrary to the tone of today's Wall
Street Journal article.  New capacity additions will likely keep margins
depressed. For its part, Carbide expects to add roughly 100 million pounds per
year (partly ethylene) capacity in Quebec by early 1994.  Formosa's 530 million
pounds per year ethylene glycol and 450 million pounds per year HDPE plants
start up in the next few weeks followed next year by 1.5 billion ethylene and a
500 million pound LLDPE plant.

4.  Cash flow is trending a bit below budget.  Year to date operations have
been cash negative to the tune of $50-$60 million  Capital spending will likely
run $10 million below budget this year at $350 million, but next year's
spending is likely to be $400-$425 million (vs. our $400 million earlier
estimate).  1995 spending will likely exceed 1994 levels as spending for the
Kuwait mega project starts.  SHARES OUTSTANDING CONTINUE TO DRIFT UPWARDS TO
155 MILLION BY THE END OF SECOND QUARTER 1993.

5.  WHERE IS THE GOOD NEWS?  FIXED COST CONTINUES TO DRIFT DOWNWARDS.  SG&A
plus R&D was $7 million below year ago in the first half (full year 1992 was
$34 million below 1991; second half 1992 was $2 million below year ago).
Interest expense is down $56 million is the first half of 1993 vs. year ago;
will be expected to be $17 million lower in the second half of 1993 vs. year
ago.  MARGINS IN POLYETHYLENE AND ETHYLENE GLYCOL HAVE LITTLE OR NO ROOM LEFT
TO FALL.

VALUATION
Multiple              UK      DOW   LYO    CUE(1) S&P500

1994 EBITD            6.0     7.0   13.0     7.1      NA
1993 Gross Cash Flow  8.9     7.9   29.4     6.2     9.0
Normalized EBITD      4.3     4.8    3.9     3.3      NA
1994 P/E             15.0    19.9   88.2      NM    14.9
Yield,%               4.0     4.3    5.1     0.0     3.0
(1) Hanson has bid to acquire this company.





                             EXXON CORPORATION
                           (Alt-X XON for chart)

              7/30/93 52-Wk-Rng FY/Q  EPS93  EPS94 PE94 NxtQtr LyQtr
Exxon Corp.     65.63   69-57   12/3   4.00   4.75 13.7  **.** **.**

1.  Exxon reported second quarter net per share of $.98, up from $.73 last
year.  Earnings included $210 million in non-recurring tax credits and
gains on asset sales.  Excluding these results, adjusted net income is $.83
versus a similarly adjusted result in last year's second quarter of $.71
per share.  While analysts routinely strip out of reported earnings
these identified one-time gains, it is worth noting that in Exxon's case,
the company has had small to moderate non-recurring gains in nine out of
the past ten quarters and only one small non-recurring loss.  Overall,
Exxon has had a net cumulative contribution to earnings of $.70 per share
from so-called non-recurring items since the beginning of 1991.  This would
seem to indicate a conservative accounting approach and a higher quality of
earnings than would be the case for several of its competitors.

2.  There were no significant surprises contained in Exxon's second-quarter
release.  Foreign exploration/production earnings were impacted by a large
decline in European gas sales related to a warmer than normal second
quarter.  Second-quarter demand always declines from the first but it was
much sharper than usual this year.  In addition, sales/earnings were
modestly and negatively impacted by deferral of liftings of U.K. North Sea
oil until the third quarter (revenues and earnings are booked as oil is
sold, not produced).  These two items resulted in foreign
exploration/production income below normal.  Foreign refining/marketing
earnings and margins were stronger than projected, with conditions
in the Far East quite good.  Results in the U.S. petroleum segments
were as expected.

3.  In the category of Other Operations, Exxon's earnings in Hong Kong
Power continued strong and to show good growth ($59 million for the quarter
versus $51 million last year).  But coal and minerals earnings were hurt by
lower coal production and falling copper prices.

4.  Looking ahead, Exxon's earnings will be helped by a build-up in domestic
oil production later this year, and analysts have raised their estimate for
full-year foreign refining/marketing.  The latter reflects a strong second
quarter and a likelihood that this segment may benefit from the recent
decline in oil prices.  On the other hand, oil prices have been weak and
analysts have lowered their full-year estimate leading to a reduced earnings
expectation for Exxon's exploration/production sector.

5.  Capital and exploration expenditures were marginally higher than last
year's second quarter at $2.1 billion and for the first half were some 7%
below last year at $3.7 billion.  Exxon should be in balance this year on its
cash flow and asset sales versus capital expenditures and dividends but look
for the company to generate significant free cash flow in 1994 and 1995.
This makes analysts highly confident of a dividend increase later this year
or early 1994.




                               CHEVRON CORP.
                          (Alt-X CHV for chart)

              7/30/93 52-Wk-Rng FY/Q  EPS93  EPS94 PE94 NxtQtr LyQtr
Chevron Corp.   88.38   90-66   12/3   5.70   6.40 13.7  **.** **.** CHV

1.  Chevron reported second-quarter net per share from operations of $1.62,
a 63% increase over last year's $.99 per share.  Chevron also took a one-
time net charge of $1.47 per share in the second quarter, bringing reported
net per share to $.15.  Earnings from operations were marked by strong
increases in all petroleum segments relative to a year ago; cost-cutting
and higher U.S. gas prices were the principal causes.
Exploration/production results were basically unchanged relative to the
first quarter while worldwide refining/marketing results were higher (U.S.
earnings were lower, but this was more than offset by higher foreign
results).  Chemicals and minerals weakened compared to the first quarter
while corporate expenses were lower.  In all, earnings were generally as
expected in form but were a touch better in magnitude.  This was Chevron's
third consecutive quarter of very strong operating results.

3.  As mentioned, the company also had a one-time net charge of $1.47 per
share in the second quarter.  This had basically been preannounced a few
months ago when Chevron released its domestic refining/marketing
restructuring plan.  The key element in the net charge was a $552 million
item related to the restructuring of its U.S. refining/marketing system,
primarily due to the writedown to estimated realizable value of the two
refineries slated for sale (Philadelphia and Port Arthur), as well as
anticipated losses on the sale of LIFO inventories connected with the two
refineries.  There were several other items which more or less offset each
other.  Importantly, the cash effect of the net charge was basically nil.
And Chevron actually received some $642 million in proceeds from asset
sales during the quarter, with Ortho the dominant one.

4.  Chevron indicated that Tengiz production (its joint venture in
Kazakhstan) was essentially breakeven in the second quarter and that Tengiz
should be contributing to profits beginning in the third quarter as
production volumes pick up.

5.  It also indicated that it was distributing information packets on the
two domestic refineries being offered for sale and that it hoped to close
off bids by year-end 1993.  No indication was given as to hoped-for
proceeds, but the size of the writedown indicated above is probably a good
sign that proceeds will be modestly sized.

6.  Current trends include a weakening of crude oil prices, but natural gas
prices continue strong.  Marketing margins have improved significantly
since the end of the second quarter; it appears that, at least so far, the
industry has been able to hold onto a fair amount of the crude oil price
decline at retail levels.  If this continues, it could provide an
unexpected bulge in third-quarter refining/marketing earnings.

7.  Chevron continues to impress with strong operating results and cost-
cutting efforts.  Its business mix--with large contributions from domestic
gas, California refining/marketing, Far East exposure through Caltex--is
very favorable in today's environment.  The Chevron story continues to be a
strong and improving one.