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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Pocket This Portfolio For A Mere $1,000

From Staff And Wire Reports

If you’re serious about investing in no-load stocks, but you don’t want to commit a lot of money, the “DRIP Investor” newsletter recently recommended a small portfolio of no-load stocks that you can buy for a total of $1,000.

Since it includes only six stocks, this portfolio alone won’t give you enough diversification to reduce investment risk. But it may be a place to start.

Before you make a move, get a free copy of the prospectus and enrollment form for each stock.

Keep in mind, too, that stock prices can go up and down. You could profit, or you could lose money. In other words, your investment isn’t guaranteed.

Also remember that when you invest directly, you won’t get the advice, recommendations, research and other services that a stock brokerage might provide.

The companies are:

Exxon, at 1-800-252-1800, with a $250 minimum. There is no fee.

Home Depot, at 1-800-774-4117, with a $250 minimum and $7.50 fee.

Johnson Controls, at 1-800-524-6220, with a $50 minimum and no fee.

McDonald’s, at 1-800-774-4117, with a $100 minimum and $10 fee.

Procter & Gamble, at 1-800-764-7483, with a $250 minimum and $7.50 fee.

Wisconsin Energy, at 1-800-558-9663, with a $50 minimum and no fee.

Normally, the minimum investment for McDonald’s is $1,000, but the company will waive this if an investor agrees to a minimum automatic monthly investment of $100.

All fees shown are for acquiring shares; other fees may apply for other transactions or services.

Telecommunications funds thrive

The recent announcement by AT&T that competition in the long-distance market was taking a toll on profits might have been expected to send telecommunications mutual funds into a tailspin.

Not so, because many funds specializing in the fast-changing communications world do not own shares of the industry’s giant.

Guy Scott, who manages the Smith Barney Telecommunications Growth fund, said AT&T had not been growing fast enough to qualify for his portfolio.

Spokane-native Michael Mahoney, manager of the GT Global Telecommunications fund, said a big part of AT&T’s business - international fax calling - could be eliminated in coming years as e-mail grows.

On the Web

The Mutual Fund Education Alliance, a trade association for direct-marketed mutual funds, has opened a page on the World Wide Web at http://www.mfea.com that includes fund listings and profiles for nearly 1,000 funds.

It also lets investors screen funds by objective, investment minimum, fees or other criteria, check industry news or link to Web sites of 40 no-load fund companies.

Commission launches newsletter

The Washington Utilities and Transportation Commission has launched a new consumer newsletter.

The initial edition, which contains tips about moving and how to deal with telephone “slamming,” along with other information, can be obtained by calling 1-800-622-2967.

The call will be taken by a recording device. Ask for the consumer newsletter, then give your name and address.

Commission spokeswoman Marilyn Meehan said three issues are planned to gauge public response. If successful, it may be continued.

Cellular, belt, fuel stocks touted

A good investing approach, says Brent Miley of David L. Babson & Co. of Cambridge, Mass., “involves searching diligently for stocks that have a number of gold-medal fundamentals, including a dominant share of their markets, but for various reasons have not garnered the attention and adulation they deserve.”

Miley lists three, all in wonderfully boring, profitable businesses: Andrew Corp., which builds cellular stations, coaxial cable and antennae; Albany International Corp., which makes continuous belts used in paper manufacturing; and World Fuel Services Corp., which supplies fuel to small airlines.