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way in 2nd quarter

OTC stocks lead
way in 2nd quarter

The bull continued to hold off the bear in local stock action during the second quarter.
On the whole, Rochester’s smaller fry did better than their larger counterparts.
As a group, Rochester’s AMEX and NYSE firms gained 2 percent over the second quarter.
That compares to a 3.54 percent gain for NYSE composite and a 3.89 percent gain for the S&P 500.
Rochester OTC stocks, on the other hand, showed a 5 percent average gain.
The local picture reflects an increasingly volatile market and a generally hyped-up picture for OTC issues nationally, said Christopher Hayes, chief investment strategist at Marsh Capital Management Inc.
Leading the pack among NYSE and AMEX firms tracked by the Rochester Business Journal were Xerox Corp., Eastman Kodak Co.

OTC stocks lead
way in 2nd quarter

The bull continued to hold off the bear in local stock action during the second quarter.
On the whole, Rochester’s smaller fry did better than their larger counterparts.
As a group, Rochester’s AMEX and NYSE firms gained 2 percent over the second quarter.
That compares to a 3.54 percent gain for NYSE composite and a 3.89 percent gain for the S&P 500.
Rochester OTC stocks, on the other hand, showed a 5 percent average gain.
The local picture reflects an increasingly volatile market and a generally hyped-up picture for OTC issues nationally, said Christopher Hayes, chief investment strategist at Marsh Capital Management Inc.
Leading the pack among NYSE and AMEX firms tracked by the Rochester Business Journal were Xerox Corp., Eastman Kodak Co. and Bausch & Lomb Corp.
Xerox ended the quarter with a 27 percent gain after a 3-for-1 stock split to close at $53.50 June 28. Bausch & Lomb closed at $42.50 to post a 15 percent gain. Kodak gained 10 percent, closing at $77.75.
Contributing to the market’s roller-coaster ride is the increasing position of mutual funds as compared to individual and institutional investors, he said. Managers who must themselves be invested in the funds they run tend to roil the waters more than insurance companies and banks, Hayes said.
The above-indices showing for local OTCs mirrors increased activity in small-capitalization companies overall, which in turn reflects market expectation that such firms’ stock will show more and faster appreciation, he said.
Among the leaders were Moscom Corp., with an 84 percent gain, and ACC Corp., which rose 64 percent.
Meanwhile, global firms, many of which reaped windfall profits last year from downsizing payrolls, hold less sheen for investors who see smaller gains as 1996 profits drop.
“You can’t lay off a PC,” Hayes said.
Also clouding the profit picture for such companies is the continued strength of the dollar.
As the longest bull market in history continues, investor edginess is beginning to rise, but not enough to put a crimp in the market ascent yet, he added.
While most are expecting a correction, Hayes said, investors are still jumping in to buy stocks that have taken a dip, figuring the price will buoy with at least one more market upsurge.

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