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Rising interest rates--generally a warning signal for buyers of the stocks of securities firm--haven't stopped many Wall Street analysts from recommending Dean Witter, Discover & Co.
At a time when two major firms--Salomon Brothers Inc. and PaineWebber Group Inc.--have posted quarterly losses, Dean Witter appears to have set itself apart.
Focused on mutual funds and its credit card, Discover, the firm has neatly sidestepped the turbulence in trading and investment banking.
Advocates of the stock say that whether equity markets move up or down, mutual fund operators continue to collect fees for managing money. Indeed, the firm surprised most analysts with its second-quarter earnings report of $1.23 a share, which set off a round of upward earnings revisions. The per-share...