http://www.thepost.mindspring.com ®I)E CIjarlottE ^osit THURSDAY, OCTOBER 2, 1997'' 8A STRICTLY BUSINESS Funeral giant faces stiff challenges after suit By Kendall Wilson THE PHILADELPHIA TRIBUNE A white-owned funeral services conglomarate that is trying to make inroads into the lucrative hlack funeral market is running into internal and external prob lems. A Wall Street Journal article last week reported that Loewen Group, the Canadian-hased giant is laying off some 500 employees and is in the process of streamlining services in a mas- Outpace stock market CHARLES ROSS Your Personal Finance sive cost-cutting move. Loewen is working with hlack Baptist churches, primarily through the National Baptist Convention, to tap into the African American market. The company is already feeling the pains of a $175 nulHon settle ment with a black mortician and insurance company owner in Biloxi, Miss., following a $500 million judgment against the company. The owner, Jeremiah O'Keefe, who sold pre-need insurance to funeral homes, had an insurance deal with a major funeral home that was bought out by Loewen. O’Keefe said Loewen reneged on the agree ment and he charged that the conglomerate was trying to destroy a black competitor. Interestingly, Raymond L. Loewen, the corporation’s founder and chairman, in attempting to show Loewen’s color-blind philosophy, testified that the company’s deal with the National Baptist Convention was a testament to his interest in helping AfHcan Americans. That approach didn't sit well with the jurors. “Here was this Canadian who didn’t know anything about blacks, trying to say he was cre ating jobs for these black people he loved so much,” jury foreman Glenn MiUen said in a published interview. “But it looked to us like he was ripping them off.” The jury foreman said the jury’s distaste for Loewen’s mar keting strategy figured promi nently in its decision to award O’Keefe $500 million and some jurors wanted to give him more than $1 billion. The jurors were equally incensed at the role of the National Baptist Convention, which recently dropped an inves tigation into alleged money mis management against President Hemy Lyons. “When your own preacher comes to you selling a funeral plot and you are deeply rehgious, it just follows you’re going to get sucked in,” Mdlen said. “It just doesn’t seem right.” Loewen criticized the “injustice of the disproportionate award,” but said it did not appeal becaus,^ ^ it did not want to subject share-” holders to “the continued uncer-. tainty and financial burden.” “The people in these churches ' are good people, humble people,*, said Mike Allred, one of 0’Keefe*s,_^ attorneys. “In many instanced they are naive people, and it’s an, obscenity to trick them.” , ^ O’Keefe’s lead attorney was prominent black lawyer Willie Gary. ; ; There are two smart investing strategies that can help you strengthen your portfolio and beat the Standard and Poor’s 500. First, buy depressed shares in a company that is making initial reorganization moves. Companies at this stage often experience a boost in their stock price, but the biggest jump often occurs just before the company announces major changes. You can spot com panies in this ripe condition by watching your paper’s business section, or the Wall Street Journal. A second strategy is to buy stock in spin-offs about a month after they go independent. But be patient: a spin-off’s shares can fal ter because many investors who receive the shares don't want them and sell them right away, depressing the price. But wait a month or two. 'The typical spin-off goes on to superior performance. Reinvest in top executives Buying a stock because some body else bought it may not always be smart. But if the investor you’re tracking is a com pany itself, or a company’s top executives, you are probably in line for a good investment. When a company’s management decides the firm should repurchase its own stock, chances are the stock’s price will see a boost. Buybacks signal that insiders, who have the best information available, think the stock is selling cheaper than it should. Buybacks can also raise earn ings per share, because the profits See OUTPACE on page 9A Africa’s finest PHOTO/LEE STEWART House of Africa owner Papa “Pap” Seydou Ndiaye in African dress sits on iionskin rug during grand opening activities Saturday at his African gailery at 1215 Thomas Ave., just off Centrai Avenue, near The Piaza. The opening ceiebration featured master drum mers, dancing and African food. Ndiaye opened the store in August. He got the idea to open the store last year after a stopover in Charlotte after selling his goods in Atlanta during the Olympics. He also owns a showroom in New York. The House of Africa fea tures authentic African art, jewelry, drums, clothing and specialty items such as Shea butter and black soap. Money Management Avoid a tax surprise By Amanda Danchi SPECIAL TO THE POST l.n;; .'L st>v if Business ovmers can avoid tax'' surprises and improve their bot tom line by giving their business es a year-end tax checkup. According to tRe North Carolina Association of CPAs, it involves estimating your taxable income for 1997, identifrdng tax deduc- , tions that can help offset that”* income, calculating your witfr . holding and estimated paymenfis, ’* and implementing a strategy that” enables you to take advantage bf,’ the tax breaks available to you. * .“ Deductions that affect health Self-employed individuals can deduct up to 40 percent of their health insurance premiums fof , themselves and their families! / with a few restrictions. If you’re'/ self-employed, make sure ydu‘ have adequate coverage and if.;; not, boost it by year-end to claiin this deduction. Proprietors of non-’ ‘ incorporated closely held business'*. may be entitled to deduct even*"' more — up to 100 percent of their' - health insurance - if they demonL'* strate that it is an employee beiii efit. Winners are consistent at investment game Let the IRS offset bad debts ' OMAR DILLARD Look at successful people, and you’ll find that many of them share an important trait: consis tency. Take race car drivers, for exam ple. A road race lasts a long time, and the lead changes. Lap records and daring moves are common. Some drivers grab for heroics, but the winners know they must fin ish the race. Wnners may not be in front through the whole race, but they know consistency vdll get them to the finish line first. When it comes to mutual funds, consistency is the goal of profes sional managers. There’s no way around short-term fluctuation, but with sound management, mutual funds can provide long term consistency. Consistency does not mean that your investments will achieve positive returns every year. Tb illustrate, let’s compare a global mutual fund to the MSCI World Index, an unmanaged index of global stocks tracked by Morgan Stanley Capital International. Global stock markets are typical ly more volatile than ours, and they better illustrate how consis tent management can provide better returns than an unman aged index of stocks. TIME Conference focuses on the millineum By Herbert L. White THE CHARLOTTE POST Die economy’s role in the next millenium will be the focus of a conference in Charlotte next week. The Dansition Into Millenium Economy Conference Oct. 9-11 at the Airport Sheraton Hotel will highlight topics ranging from asset protection, the Federal Reserve, Internet, new technology and wealth accumulation. Die conference’s sponsor, Partnership Services Network, is a member ship organization that provides access to products and services to develop business alliances to pen etrate established and emerging markets. The conference’s format includes pre-conference activities. plenary sessions, and International Marketplace and Dade Show and a banquet with live entertainment. Among the presenters are: • Sandra D. Lynch, an emerging commerce specialist with AT&T Communications, wiU speak on “How to conduct international trade on the Internet,” • Lecturer and author Charles Reives wiU conduct seminars on basic money facts that can change individuals’ financial status; • Forrest D. Tbms, president and CEO of Daining Research Development. His presentation is “ChEiIlenges and opportunities of communities in transition.” • Dan Bechter, senior vice pres ident and officer in charge of the Charlotte and Columbia offices of the Federal Reserve Bank of Richmond. His presentation is ‘Die role of the Federal Reserve System.” Registration is $250, and can be arranged by calling (800) 307- 6543, extension 9106. For more information, call Richard Hooker at 482-7026. For hotel reservations and rates, call the Sheraton Airport Plaza Hotel at 392-1200 and men tion the DME conference. When someone owes your busi ness money that carmot be coUed> ^ ed, you are entitled to a deductiorv ^ for the amount of the bad debt.ii.3 However, you must be able demonstrate that you have tried to collect the debt. Be sure tg.^ make attempts to collect the debt ,3 before year end and document your efforts - so you can demon strate that the debt has, in fact,.,^ become worthless. Be aware that if your company uses the cash, , method of accounting, it can deduct a bad debt only if it , incurred an actual cash loss or if., the amount was included in income. If your company uses accrual accounting, you may,,, deduct a bad debt in the years in- ■ which it becomes partly or totally,, worthless. , ,, Give tax-deductible bonuses arc! 'LO If you’re looking to reward your employees for their hard worH , over the years, .Uncle Sam caq ,., See AVOID on page 9A ' BUSINESS BRIEFS Myrna M. Love has been hired by McDevitt Street Bovis to serve as pro ject accoun tant for pro gram manage ment of a $92 million Charlotte- Mecklenburg schools construc tion budget. As project accountant. Love is Love responsible for the budget, preparing monthly cash flow analyses and reviewing project bids and contracts as well as billing and maintenance of ven dor relationships. Prior to MSB, Love was bud get assistant in the facilities department for Charlotte- Mecklenburg Schools. • Joy E. Paige has been named Central Region Community Reinvestment Act officer at Wachovia Bank in Raleigh. Paige joined Wachovia in the bank’s Fayetteville sales finance office in 1985. She trans ferred to the Chapel Hill office in 1987 as a Personal Banker. Most recently, she was a Private Banker and vice president in the Raleigh office before Paige assuming her current position. • Ernest E. Oglesby Jr. has joined Payless Car Rental as marketing consultant for its offices in Atlanta, Charlotte and Myrtle Beach. Oglesby is founder and past CEO for Oglesby & Anderson Inc., a marketing, public rela tions and advertising company in Philadelphia. His responsi bilities include development of programs in the three markets, promotions and public out reach. • Jenene L. Herring has been named scholarship manager for F oundation For The Carolinas. Herring was previously employed as enrollment ser vices associate at Lynchburg College in Virginia. She was assistant director of admissions Herring at Niagra University in New ' York from 1992-94 as well as Temple University’s admissions department. ; ~ Foundation For The’; Carolinas is a nonprofit organi^' / zation that serves donors, com- ' munities and charities in the' Carolinas. ' '''* • A seminar on bonding for ' business will be held Saturday. ’*” McDevitt Street Bovis , Charlotte-Mecklenburg.”” See BUDGET on page 9A