Stock-fund cash levels hit 29-year low

• Salomon Brothers Investors Value Fund has combined down-and-out growth stocks with true-blue value issues to produce 13.13 percent average annual gains over the past decade. It prefers stocks selling at substantial discounts to the S&P 500, their industries, or both. It also looks for earnings that are outpacing the general market's, good managements and a catalyst that can drive share prices higher. Recent favorites: American International Group, Altria Group, ChevronTexaco, Hewlett-Packard, McDonald's, Pfizer, Verizon.

• Big banks could be hurt by rising interest rates, heavy debt and questionable assets, says Utility Forecaster newsletter (1750 Old Meadow Road, McLean, VA 22102). "But smaller regional banks, focused on increasing their assets, improving loan quality and minimizing financial liabilities, tend to produce good results in both good times and bad." UF recently recommended the stocks of six such regional banks, with "dividends well-covered by profits and good takeover prospects." The six: Arrow Financial, First Tennessee, Hibernia, NBC Capital, Union Planters, United Bankshares.

• Some stock analysts consider a stock cheap when it has a low price-earnings ratio. Others consider a low price-book ratio the best indicator. Business Week has found six stocks that combine both these qualities. All recently had stock prices actually below their book value and also price-earnings ratios averaging just 8-to-1: Dynergy, Landmark Financial, Dura Automotive, Valero Energy, Toys R Us, Ikon Office Solutions.

• For stock investors interested in emerging markets, Money magazine suggests an international fund with strong records in both developed and developing countries. "Such funds provide diversification without as much volatility as those focused solely on the developing world. Our favorites: Oakmark International (800-625-6275), Templeton Foreign (800-342-5236) and Preferred International Value (800-662- 4769). Each may invest up to 30 percent of its assets in emerging markets and each achieved returns in the top 25 percent of its peer group over the past three- and five-year periods."