QA

Q: I have 99 shares of Lane Bryant stock from a late sister’s estate. We have learned that Lane Bryant was bought by another company. Our question is whether this stock is still redeemable. Santa Maria, Calif. A: The stock is still redeemable and worth a total of $2,871. Lane Bryant, the women’s apparel chain, was acquired by the Limited Inc. in 1982 for $29 a share. Write to Manufacturers Hanover Trust, Reorganization Department, P.O. Box 1916, New York, N.Y. 10116.

Too bad your family waited this long to cash in. That $2,871 would have doubled in the eight years since the transaction took place, even if you had invested it in the most conservative of ways.

Q: What’s your opinion of Pic ‘N’ Save Corp. shares? We bought 300 shares at $22 in 1987. As of the close last week, the stock was down to $10.87. Does Pic ‘N’ Save have any prospects for improving? Would anyone want to take the company over? Bethlehem, Pa.

A: It’s funny you should ask that last question. This month, David H. Batchelder, one of the smartest investors around, disclosed that he owned 6.6% of Pic ‘N’ Save’s stock and planned to make a bid to acquire the company. This would be one of Batchelder’s first solo efforts, so it’s too early to tell whether he’ll follow through on his threat. Now based in La Jolla, Batchelder was the chief strategist for corporate raider T. Boone Pickens Jr. before going out on his own. Batchelder is well respected by the fast-money crowd on Wall Street, so Pic ‘N’ Save’s stock immediately rose a couple of dollars from the price you mentioned in your letter.

There is the possibility that Batchelder will never really make an offer and that he’s just using these threats as a way to get the company to restructure. But no matter what happens--a takeover or a restructuring--Pic ‘N’ Save’s shares are likely to benefit. Otto Grote, who follows Pick ‘N’ Save for Derby Securities, says the California retailer’s profits have been eroding in recent years because of its ambitious expansion. That hurt profit margins, which in turn, hurt its stock price.

Q: Rumors surfaced a few times last year about Maytag being a likely takeover target, probably by the Japanese. But the company seems to be burdened with lagging sales in Britain and Australia and by a large interest expense associated with the acquisition of Chicago Pacific. What’s this company’s potential for a takeover? Arvada, Colo.

A: Jonathan Goldfarb, who tracks the appliance industry for Merrill Lynch & Co., thinks that Maytag is not a very attractive takeover candidate because of all its debt. Lester Crown, a pretty savvy investor, does own about 10% of Maytag’s stock. But he’s not thought of as someone who will ever threaten the company. As you suggest, there have been rumors that unnamed Japanese investors might be building a stake in the appliance company.

But I’ll let you in on a little secret. Speculators love to spread takeover rumors about Maytag. The company has a well-known brand name, and if you don’t look too closely--as you fortunately have--you can almost believe the takeover gossip. It’s the perfect stock to manipulate. So speculators will spread a rumor to get the stock moving higher and then hope that some gullible journalist passes the rumor on to the public.

It has happened over and over. The public losses money on rumors like the one about Maytag, and the speculators make a killing.

Q: Please give me the address of the department in Washington where I can write regarding what I believe to be a Treasury certificate or bond that I could not find following my husband’s passing. Kenmore, N.Y.

A: Since I can’t figure out from your letter exactly what sort of bond you are referring to, I’ll have to give you two addresses. If what you’ve lost is a regular Series EE savings bond, write to: Bond Consultant Branch, Savings Bonds Operations Office, Bureau of the Public Debt, Parkersburg, W.V., 26106-1328. If you think you’ve lost a marketable security issued by the Treasury, anything from 3-month bills to 30-year bonds, you’ll have to send your inquiry to the Division of Securities Accounting, Bureau of the Public Debt, Room 639-17, 300 13th St. S.W., Washington, D.C. 20239.

Include at least the name and Social Security number of the person to whom you think the bonds were issued.