Q: I have 100 shares of Carter-Wallace, which has been declining
steadily in price. Should I sell to avoid further loss?
A: Stock of Carter-Wallace Corp. (around $92 a share, New York
Stock Exchange), a drug and toiletry products firm best known for
Trojan condoms, jumped dramatically in value after early publicity
about use of condoms as protection against the disease AIDS.
Unfortunately, the stock price progressed a bit ahead of the
firm's fundamentals and it has declined steadily ever since, said
Lynn Pauls, analyst with E.F. Hutton & Co.
``I still expect the company's condom sales to double within the
next three years and consider 20 percent corporate earnings growth
to be likely,'' said Pauls, who pointed out that the company's
pharmaceutical business is strong while its toiletries line is
depressed. ``In my opinion, Carter-Wallace stock is undervalued and
I expect it to be an above-average performer.''
Q: My wife and I, both retired, own shares in Litton Industries.
She wants to sell them because they doesn't pay dividends. Should
A: While Litton Industries (around $90, NYSE) is likely to have
two more quarters of ``down'' earnings, this diversified defense and
business-systems manufacturer has long-term potential, said Carol
Neves, analyst with Merrill Lynch & Co. It continues to make strides
in seismic exploration, industrial automation and aerospace
``Whether you hold on to your stock depends on whether you're
willing to accept the fact that it doesn't pay dividends and isn't
likely to do so,'' explained Neves, who considers the company in
good financial shape. ``I can see Litton stock selling a lot higher
once new programs come on line, so holding on for two years might
make any risk well worth it.''
Q: I discovered some old stock certificates of Chelsea Towne
Ltd. in an attic. Can you tell me if my find is worth anything?
A: The charter of Chelsea Towne Ltd., a firm incorporated in New
York in 1972, is still in effect, said Robert D. Fisher, vice
president with the New York-based R.M. Smythe & Co. stock-search
firm. However, the company is inactive and there's no market for
``Chelsea Towne stock was last traded at 1 cent a share in
1979,'' said Fisher. ``Its stock transfer agent, Continental Stock
Transfer & Trust Co. of New York, says it has dropped the company
from its lists.''
Q: Is the interest received from Swiss bank accounts subject to
local, state and federal taxation as interest income? …