Newspaper article THE JOURNAL RECORD

Telecommunications Stocks Lead Market in '93 Performance

Newspaper article THE JOURNAL RECORD

Telecommunications Stocks Lead Market in '93 Performance

Article excerpt

In a year dominated by visions of a new information economy, telecommunications stocks led the pack in the 1993 performance race on Wall Street.

Auto and heavy machinery issues were close behind, powered by signs that an economic recovery was at last gathering some momentum in this country.

For the year through the Christmas weekend, Dow Jones's index of communications stocks excluding industry giant American Telephone Telegraph Co. rang up a gain of just under 67 percent.

The group nosed out auto manufacturers, up about 63 percent, and heavy machinery producers, up about 60 percent.

The Street's mania for multimedia drew some of its inspiration from deals such as AT T's takeover of McCaw Cellular, Bell Atlantic's move to acquire Tele-Communications Inc., and a battle for control of Paramount Communications.

It also showed up in big gains for equipment and systems producers like DSC Communications, whose shares soared from under 4 in 1992 to as high as 73 in 1993, and chip-makers like Micron Technology, which got as high as 63 from 13 a year earlier.

While such standout performers helped lift all the market averages to new highs during the year, the markets had notable laggards as well _ especially among the big-name growth stocks favored by many investing institutions.

Philip Morris, for one, tumbled from around 80 to the mid-40s as the company took dramatic steps including price reductions in response to competition in the domestic cigarette market.

Thus, more than a few investors wound up struggling to keep up with the markets' overall progress.

"It was an absolutely terrific year and an absolutely terrible year," said Fred Taylor, chief investment officer at U.S. Trust Co. of New York.

Or in the words of Stan Weinstein, publisher of the Professional Tape Reader advisory letter in Hollywood, Fla. …

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