UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 13F
FORM 13F COVER PAGE
Report for the Calendar Year or Quarter Ended: March 31, 1999
Check here if Amendment [ ]; Amendment Number:
This Amendment (Check only one.): [ ] is a restatement.
[ ] adds new holdings entries.
Institutional Investment Manager Filing this Report:
Name: Palley-Needelman Asset Management, Inc.
Address: 800 Newport Center Drive, Suite 450
Newport Beach, CA 92660-6316
13F File Number: 28-______
The institutional investment manager filing this report and the
person by whom it is signed hereby represent that the person
signing the report is authorized to submit it, that all
information contained herein is true, correct and complete, and
that it is understood that all required items, statements,
schedules, lists, and tables, are considered integral parts of
this form.
Person Signing this Report on Behalf of Reporting Manager:
Name: Beth Masiello
Title: Director of Operations
Phone: 949-760-6644
Signature, Place, and Date of Signing:
_______________ ________________ ________________
Report Type (Check only one.):
[X ] 13F HOLDINGS REPORT.
[ ] 13F NOTICE.
[ ] 13F COMBINATION REPORT.
List of Other Managers Reporting for this Manager:
I AM SIGNING THIS REPORT AS REQUIRED BY THE SECURITIES EXCHANGE
ACT OF 1934.
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FORM 13F SUMMARY PAGE
Report Summary:
Number of Other Included Managers:
Form 13F Information Table Entry Total: 72
Form 13F Information Table Value Total: $2,640,691
List of Other Included Managers:
No. 13F File Number Name
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FORM 13F INF TBL
NAME OF ISSUER TITLE/CLASS CUSIP NO
VALUE SHARES/ SH/ PUT/ INVSTMT --VOTING AUTHORITY--
(x$1000)PRN AMT PRN CALL DSCRETN MGRS SOLE SHARED NONE
- - ------------------------------ ---------------- --------- --------
- - -------- --- ---- ------- ----------- -------- -------- --------
AT&T CORP COM 001957109
80208 1004950 SH SOLE 1004950 0 0
ABBOTT LABORATORIES COM 002824100
250 5350 SH SOLE 5350 0 0
ALBEMARLE CORP COM 012653101
748 35725 SH SOLE 35725 0 0
ALLIED SIGNAL INC COM 019512102
42824 870635 SH SOLE 870635 0 0
AMERICAN HOME PRODUCTS CORP COM 026609107
48901 749448 SH SOLE 749448 0 0
AON CORP COM 037389103
222 3510 SH SOLE 3510 0 0
APARTMENT INVT & MGMT CO CL A COM 03748R101
254 7000 SH SOLE 7000 0 0
BP AMOCO PLC - SPONSORED ADR COM 055622104
76431 756742 SH SOLE 756742 0 0
BANKAMERICA CORP (NEW) COM 06605F102
67943 962031 SH SOLE 962031 0 0
BAXTER INTERNATIONAL INC COM 071813109
44193 669587 SH SOLE 669587 0 0
BESTFOODS COM 08658U101
50274 1069655 SH SOLE 1069655 0 0
BRISTOL-MYERS SQUIBB CO COM 110122108
449 7000 SH SOLE 7000 0 0
BTR SIEBE SPONSORED ADR COM 11776R109
176 19785 SH SOLE 19785 0 0
BUCKEYE PARTNERS LP 118230101
218 8000 SH SOLE 8000 0 0
BURLINGTON NORTHERN SANTA FE COM 12189T104
64556 1963681 SH SOLE 1963681 0 0
CHEVRON CORP COM 166751107
269 3028 SH SOLE 3028 0 0
CITIGROUP INC COM 172967101
65669 1028082 SH SOLE 1028082 0 0
COMERICA INC COM 200340107
343 5500 SH SOLE 5500 0 0
DIAGEO PLC - SPONSORED ADR COM 25243Q205
41041 897067 SH SOLE 897067 0 0
DUKE ENERGY CORP COM 264399106
418 7630 SH SOLE 7630 0 0
EATON CORPORATION COM 278058102
268 3743 SH SOLE 3743 0 0
ELF AQUITAINE SPONSORED ADR COM 286269105
45830 680861 SH SOLE 680861 0 0
EMERSON ELECTRIC COMPANY COM 291011104
37544 709218 SH SOLE 709218 0 0
ENTERGY CORP COM 29364G103
60450 2198180 SH SOLE 2198180 0 0
ETHYL CORP COM 297659104
589 138500 SH SOLE 138500 0 0
EXXON CORPORATION COM 302290101
642 9098 SH SOLE 9098 0 0
FEDERAL NATL MTG ASSN COM 313586109
36713 530154 SH SOLE 530154 0 0
FIRST UNION CORP COM 337358105
63386 1186174 SH SOLE 1186174 0 0
FLEET FINL GROUP INC NEW COM 338915101
63278 1681802 SH SOLE 1681802 0 0
FORT JAMES COM 347471104
64733 2042857 SH SOLE 2042857 0 0
GTE CORP COM 362320103
63985 1057605 SH SOLE 1057605 0 0
GANNETT COMPANY INC COM 364730101
68201 1082561 SH SOLE 1082561 0 0
GENERAL ELECTRIC COMPANY COM 369604103
988 8928 SH SOLE 8928 0 0
GOODYEAR TIRE & RUBBER COMPANY COM 382550101
38510 773095 SH SOLE 773095 0 0
HEWLETT-PACKARD COMPANY COM 428236103
74778 1102723 SH SOLE 1102723 0 0
HOUSEHOLD INTL INC COM 441815107
76623 1679418 SH SOLE 1679418 0 0
INTERNATIONAL BUSINESS MACHINE COM 459200101
68591 386974 SH SOLE 386974 0 0
LOEWS CORP DEL COM 540424108
34252 458990 SH SOLE 458990 0 0
MCI WORLDCOM INC COM 55268B106
61908 699032 SH SOLE 699032 0 0
MAGNA INTERNATIONAL CL A COM 559222401
1650 28435 SH SOLE 28435 0 0
MASCO CORPORATION COM 574599106
67803 2400113 SH SOLE 2400113 0 0
MATTEL INC COM 577081102
28948 1160810 SH SOLE 1160810 0 0
MCKESSON HBOC INC COM 58155Q103
48780 739089 SH SOLE 739089 0 0
MELLON BANK CORP COM 585509102
387 5500 SH SOLE 5500 0 0
MOBIL CORPORATION COM 607059102
58867 668939 SH SOLE 668939 0 0
NATIONAL CITY CORP CLEVELAND COM 635405103
66841 1007022 SH SOLE 1007022 0 0
NORDSTROM INC COM 655664100
68746 1681868 SH SOLE 1681868 0 0
OMNICOM GROUP COM 681919106
312 3900 SH SOLE 3900 0 0
PHILIP MORRIS COMPANIES INC COM 718154107
65699 1867108 SH SOLE 1867108 0 0
PRAXAIR INC COM 74005P104
58326 1617371 SH SOLE 1617371 0 0
PROVIDENT COS COM 743862104
28659 829180 SH SOLE 829180 0 0
PROVIDIAN FINL CORP COM 74406A102
40104 364584 SH SOLE 364584 0 0
QMG HOLDINGS COM 747257103
0 10066 SH SOLE 10066 0 0
RAYTHEON CO CL A COM 755111309
14681 254218 SH SOLE 254218 0 0
RAYTHEON CO CL B COM 755111408
83688 1427521 SH SOLE 1427521 0 0
ROYAL DUTCH PET CO 780257804
278 5342 SH SOLE 5342 0 0
SBC COMMUNICATIONS INC COM 78387G103
49992 1059442 SH SOLE 1059442 0 0
SCHERING PLOUGH CORP COM 806605101
414 7500 SH SOLE 7500 0 0
SCHLUMBERGER LIMITED COM 806857108
59051 981114 SH SOLE 981114 0 0
SHELL TRANSPORT & TRADING-ADR COM 822703609
60336 1485198 SH SOLE 1485198 0 0
SHERWIN WILLIAMS CO COM 824348106
75409 2681200 SH SOLE 2681200 0 0
TORCHMARK CORP COM 891027104
28255 893452 SH SOLE 893452 0 0
TREDEGAR INDUSTRIES, INC. COM 894650100
1060 34278 SH SOLE 34278 0 0
USX MARATHON GROUP COM 902905827
68570 2493446 SH SOLE 2493446 0 0
U S BANCORP DEL COM 902973106
1037 30450 SH SOLE 30450 0 0
WARNER LAMBERT CO COM 934488107
424 6400 SH SOLE 6400 0 0
WASHINGTON MUTUAL INC. COM 939322103
69576 1702156 SH SOLE 1702156 0 0
WILLIAMS COS INC COM 969457100
72177 1827260 SH SOLE 1827260 0 0
XEROX CORP COM 984121103
73212 1404545 SH SOLE 1404545 0 0
DAIMLERCHRYSLER AG ORD SHR COM D1668R123
455 5301 SH SOLE 5301 0 0
REXAM PLC COM G1274K113
80 23529 SH SOLE 23529 0 0
SAINSBURY J. PLC COM G77732108
215 35000 SH SOLE 35000 0 0
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