Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, November 24, 1994                   TAG: 9411250021
SECTION: BUSINESS                    PAGE: A17   EDITION: HOLIDAY 
SOURCE: MAG POFF STAFF WRITER
DATELINE:                                 LENGTH: Medium

HOLIDAY SHOPPERS: BUY BONDS

The stock market's downturn this week may last for some time because recent increases in interest rates have changed the mentality of traders, according to Milward, manager of J.C. Bradford & Co.'s Roanoke office.

But he said the drop in the market has created some real bargains. "Regional banks look mighty cheap," Milward said, and utilities are a good buy. Bonds have fallen so much that they are at attractive levels as well.

People who take the long view of investing should wait out the market, Milward said.

Market analysts at A.G. Edwards & Sons issued a list of "fallen angels" Wednesday. Those are stocks that are good buys because they are undervalued in the current securities market.

Robert Kulp, manager of Edwards' Roanoke office, had some of his own favorites, including stocks of Norfolk Southern Corp., which closed Wedneday at $60.625, up 87.5 cents share from Tuesday; Wal-Mart Stores Inc., $23.50, down 12.5 cents, and some regional banks like Signet Banking Corp., $28.75, up 37.5 cents, and Crestar Financial Corp., $38, up $1.25.

You don't have to search hard for good buys, Kulp said. He cited Ginnie Maes securities paying 8.5 percent and tax-free bonds paying 6.75 to 7 percent.

At Scott & Stringfellow Inc., Roanoke broker Bill Moore said the company was recommending quality stocks that are not cyclical and some fixed-income investments such as government bonds and good corporate bonds. He said people are doing "a little nibbling on quality utilities, especially electrical utilities."

Tyler Pugh, vice president and branch manager at Wheat First Butcher Singer, said clients are looking for opportunities to buy quality stocks at value prices.

Wheat also "strongly recommends" buying bonds, particularly those at mid-range maturities of five to 10 years. Because of the rising interest rates, he said, the price of bonds has fallen to the point where the yields are good for people seeking income.