Q. I purchased some shares of BankAmerica Corp. at $17 a share.
Since that time, it has dropped in value. Should I hold or sell?
A. BankAmerica Corp. (around $12, New York Stock Exchange)
should pick up some momentum based on improvement of its position in
the California marketplace, predicted Arthur Soter, analyst with
Morgan Stanley & Co.
``BankAmerica has made significant progress in cutting its cost
structure and upgrading its credit quality, so I think its balance
sheet will move into the black in the third quarter,'' said Soter,
who nonetheless expects the company to lose money for the full year.
``The problem is that its name has become tarnished in recent years,
making it difficult to attract and retain staff and attract some
types of transactions.''
Q. I own shares of American Heliothermal Corp. and cannot find
the stock listed anywhere. Does the company still exist?
A. Yes, it does, but just barely. According to Colorado
authorities, American Heliothermal Corp. of Aurora, Colo., has been
delinquent since May 1 for failure to file an annual report. If it
doesn't file one by Sept. 30, its charter will be suspended.
``Basically, the company is still legally in existence, but
inactive,'' said Robert D. Fisher, vice president with the New
York-based R.M. Smythe & Co. stock-search firm. ``It is traded over
the counter, offered at 5 cents a share.''
Q. I bought $5,000 worth of U.S. Savings Bonds last year.
Because of financial needs, I cashed them in this year. What are
the tax ramifications of this for this year? How is the interest
A. Quite simply, the difference between what you received when
you cashed in the savings bonds and what you paid for them in the
first place is your interest income, said Robert S. Greisman,
partner in the Grant Thornton accounting firm.
``So, you will be taxable on the amount of that interest income
in 1987,'' explained Greisman.
Q. I have 60 shares of American Carriers. What is your opinion
of the company?
A. American Carriers (around $10, over the counter), a
transportation holding company that derives most of its revenues
from American Freight Systems Inc., suffered a loss in the first
half of the year due to a decline in shipments, higher insurance and
rate competition. As you know, its stock has not performed very
``The company has, however, agreed to acquire Smith's Transfer
Corp., which should give it a strong position in the eastern U.S.,''
said Sharon Conway, based in Chicago with the A.G. Edwards & Sons
brokerage firm. ``That merger is subject to Interstate Commerce
Commission approval, but it might just be the spark needed to turn
things around. …