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