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

DATE: FRIDAY, April 14, 1995                   TAG: 9504140037
SECTION: BUSINESS                    PAGE: A-11   EDITION: METRO 
SOURCE: MAG POFF STAFF WRITER
DATELINE:                                 LENGTH: Medium

ADVICE? KEEP THAT STOCK PARKED

Tyler Pugh, senior vice president and branch manager at Wheat First Butcher Singer, advised investors who own the automaker's stock to hang onto it. He said they should wait and see what happens to the offer to buy the company before making a move.

Pugh said he doesn't own Chrysler stock, but "I would hesitate to buy it," he said.

He was hopeful that the national spotlight on Chrysler would bring about changes beneficial to the company in the long run, regardless of the buyout offer.

William Nash, vice president and branch manager at Scott & Stringfellow Inc., would "hold for the time being."

But with the stock closing at $47.871/2 Thursday afternoon, Nash would be "poised to sell pretty soon."

If the price should drop back to $46, Nash said, he would sell to claim the profit. Chrysler was selling at about $39 before the buyout offer of $55 a share.

Nash questioned whether the buyout would ever take place. If the deal falls through, he said, the stock will drop back to $39 or $40. He would buy at that price based on the fundamental financial condition of the company, but he would not buy the stock at current prices.

Peter Milward, manager of the Roanoke branch of J.C. Bradford & Co., said he would keep Chrysler stock if he owned it, but he would not buy at the current price.

Many people are reluctant to sell if they have held the stock for many years, Milward said. Some people bought at $10 or $15 a share, and they would face paying significant capital gains tax if they sell.

If he owned a significant position in Chrysler, he might sell half to take the gain but hold the other half. Owners of only a few shares should hold, Milward said.

Robert Kulp, manager of A.G. Edwards & Sons, agreed that he wouldn't sell stock he owned, but he wouldn't buy it either. Long-term investors especially should ride out the situation, regardless of what happens to the deal, he said.

Kulp said the average person should invest only if the stock falls back to $39 or $40.

Suzn K. Head, manager of the Roanoke office of Dean Witter Reynolds Inc., took a more aggressive view.

Head said Chrysler was on her firm's buy list before the offer, and it's still there.

Chrysler, according to Head, is "worth every penny of $55,'' the amount of the buyout offer.

She believes the bidding could go higher. Head said management often is very cool to a first offer but turns more receptive to a higher bid.

Head said that $55 is "a real reasonable offer" to acquire the stock of the vehicle manufacturer.