PALLEY NEEDELMAN ASSET MANAGEMENT INC
13F-HR, 1999-04-28
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                       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.                                                                    
<PAGE>                                                                          
                          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                                               
                                                                                
                                                                                
<PAGE>                                                                          
<TABLE>                        <C>              <C>       <C>      <C>               <C>     <C>                                    
                                                     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
</TABLE>                                                                        


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