Idaho Resolves Suit Over Security Act Violations

A McCall company has reached an agreement with the Idaho Department of Finance that resolves a lawsuit filed by the state last January.

The suit alleged that Earth Search Sciences Inc. and its president, Larry Vance, violated registration provisions of the Idaho Securities Act by offering and selling company stock when neither the stock nor Vance were registered in Idaho.

Vance and the company also were alleged to have made statements containing misrepresentations and omissions of material fact.

Under the agreement, Earth Search Sciences will offer to repurchase company stock from anyone who bought shares from the company between Nov. 1, 1992 and Dec. 15 of this year.

The company and Vance also have agreed that “they will not rely on any exemption from registration under the act for a period of five years” without getting permission from the department.

Fund buys good clues

A good way to find stock ideas is to watch what smart mutual fund managers are buying. Look at Morningstar or Value Line in the library, or call funds you admire and ask for their latest report.

L. Roy Papp, who runs three fine funds (1-800-421-4004) in Phoenix, far from the madding Wall Street crowds is sticking to his value-oriented, low-turnover strategy.

He’s buying American Power Conversion Corp., which makes boring things such as surge suppressors and is down 25 percent this month; State Street Corp., back-office services for mutual funds; and Intel Corp., off by one-third since September.

401(k)s get owner manuals

What’s the hottest new wrinkle in 401(k) plans?

Owners manuals, suggests a new survey from management specialists at Buck Consultants Inc.

More than 46 percent of the companies that offer 401(k) plans to their workers now also offer formal training to help those workers decide which investment options are best for them and to make portfolio changes when those are needed.

That may seem basic, but only 28 percent of the companies with plans offered that help when they were surveyed in 1994, Buck said.