GULF INVESTMENT MANAGEMENT INC /TX/
13F-HR, 1999-07-02
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[TEXT]                     UNITED STATES
                 SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C. 20549

                              FORM 13F

                        FORM 13F COVER PAGE

Report for the Calendar Year or Quarter Ended:  June 30,1999

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:     Gulf Investment Management, Inc.
Address:  820 Gessner
          Suite 720
          Houston, Tx 77024

13F File Number: 000792016

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:  T.C. Toomey
Title: Managing Director
Phone: 713 461 0660
Signature, Place and Date of Signing:

    T.C. Toomey    Houston, Texas    July 1, 1999

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:  0

For 13F Information Table Entry Total: 131

Form 13F Information Table Value Total: 1,775,853,000



List of Other Included Managers:

No.   13F File Number      Name

<PAGE>
<TABLE>
                                                                  FORM 13F INFORMATION TABLE
                                                           VALUE   SHARES/  SH/ PUT/ INVSTMT    OTHER          VOTING AUTHORITY
        NAME OF ISSUER          TITLE OF CLASS    CUSIP   (x$1000) PRN AMT  PRN CALL DSCRETN   MANAGERS     SOLE    SHARED    NONE
- ------------------------------ ---------------- --------- -------- -------- --- ---- ------- ------------ -------- -------- --------
<S>                            <C>              <C>       <C>      <C>      <C> <C>  <C>     <C>          <C>      <C>      <C>
A.T. & T. CORPORATION          COM              001957109    90916  1628952 SH       SOLE                                    1628952
                                                               419     7500 SH       OTHER                                      7500
ALCOA, INC.                    COM              013817101    90752  1466703 SH       SOLE                                    1466703
AMERICAN EXPRESS               COM              025816109   102800   790009 SH       SOLE                                     790009
AMERICAN GENERAL               COM              026351106    67001   888902 SH       SOLE                                     888902
                                                               452     6000 SH       OTHER                                      6000
AMERICAN GREETINGS CLASS A     COM              026375105     4391   145760 SH       SOLE                                     145760
AMERICAN HOME PRODUCTS         COM              026609107      322     5610 SH       SOLE                                       5610
                                                               681    11872 SH       OTHER                                     11872
AMERITECH CORP.                COM              030954101      691     9400 SH       SOLE                                       9400
ATLANTIC RICHFIELD             COM              048825103    46036   550912 SH       SOLE                                     550912
AVON PRODUCTS                  COM              054303102     6281   113176 SH       SOLE                                     113176
BANC ONE CORP.                 COM              06423A103     3637    61065 SH       SOLE                                      61065
BANK OF AMERICA CORP.          COM              060505104    60882   830441 SH       SOLE                                     830441
BAXTER INTERNATIONAL           COM              071813109    60088   991146 SH       SOLE                                     991146
                                                               458     7549 SH       OTHER                                      7549
BECKMAN COULTER, INC.          COM              075811109     2407    49500 SH       SOLE                                      49500
BELDEN, INC.                   COM              077459105     4971   207685 SH       SOLE                                     207685
BELL ATLANTIC                  COM              077853109     9722   148708 SH       SOLE                                     148708
BOMBAY CO.                     COM              097924104       82    10887 SH       SOLE                                      10887
BP AMOCO PLC                   COM                            3922    36151 SH       SOLE                                      36151
BRISTOL MYERS                  COM              110122108    71370  1013234 SH       SOLE                                    1013234
BROWNING FERRIS INDUSTRIES     COM              115885105    43364  1008460 SH       SOLE                                    1008460
BURLINGTON NORTHERN SANTA FE   COM              121897102      205     6600 SH       OTHER                                      6600
BURLINGTON RESOURCES           COM              122014103    14682   339460 SH       SOLE                                     339460
                                                                26      600 SH       OTHER                                       600
CAMDEN PROPERTY TRUST          COM              133131102      429    15450 SH       SOLE                                      15450
CBS CORP.                      COM              12490K107     4992   114600 SH       SOLE                                     114600
                                                               157     3600 SH       OTHER                                      3600
CHASE MANHATTAN CORP.          COM              16161A108    89604  1035888 SH       SOLE                                    1035888
CHEVRON                        COM              166751107    61327   645128 SH       SOLE                                     645128
                                                               342     3600 SH       OTHER                                      3600
CHUBB CORP.                    COM              171232101    71396  1027275 SH       SOLE                                    1027275
COCA COLA                      COM              191216100      781    12600 SH       SOLE                                      12600
                                                              1306    21066 SH       OTHER                                     21066
CONOCO, INC.                   COM              208251306     1742    62500 SH       SOLE                                      62500
DELPHI AUTOMOTIVE SYSTEMS      COM              247126105     3555   192137 SH       SOLE                                     192137
                                                                52     2795 SH       OTHER                                      2795
DELUXE CORP.                   COM              248019101      741    19100 SH       SOLE                                      19100
DUKE ENERGY CORP.              COM              264399106     5965   109570 SH       SOLE                                     109570
                                                               227     4177 SH       OTHER                                      4177
DUPONT                         COM              263534109    69085  1011311 SH       SOLE                                    1011311
                                                               191     2800 SH       OTHER                                      2800
EASTMAN KODAK                  COM              277461109     5670    83694 SH       SOLE                                      83694
                                                                30      450 SH       OTHER                                       450
ELECTRONIC DATA SYSTEMS        COM              285661104    72690  1283705 SH       SOLE                                    1283705
EXXON                          COM              302290101     2302    29843 SH       SOLE                                      29843
                                                               463     6000 SH       OTHER                                      6000
FEDERAL NAT'L MORTGAGE ASSN.   COM              313586109      560     8200 SH       SOLE                                       8200
GANNETT INC.                   COM              364730101    65789   921735 SH       SOLE                                     921735
                                                               214     3000 SH       OTHER                                      3000
GENERAL ELECTRIC               COM              369604103     1008     8920 SH       SOLE                                       8920
                                                              1085     9600 SH       OTHER                                      9600
GENERAL MILLS                  COM              370334104      908    11300 SH       SOLE                                      11300
GENERAL MOTORS                 COM              370442105     4882    73970 SH       SOLE                                      73970
                                                               264     4000 SH       OTHER                                      4000
GEORGIA PACIFIC                COM              373298108      208     4400 SH       SOLE                                       4400
                                                               114     2400 SH       OTHER                                      2400
GTE CORP                       COM              362320103     2907    38500 SH       SOLE                                      38500
HALLIBURTON COMPANY            COM              406216101     1160    25630 SH       SOLE                                      25630
                                                               253     5600 SH       OTHER                                      5600
HANCOCK FABRICS                COM              409900107      583   133350 SH       SOLE                                     133350
HEWLETT PACKARD                COM              428236103      563     5600 SH       SOLE                                       5600
HUMANA, INC.                   COM              444859102      194    15000 SH       SOLE                                      15000
INTEL                          COM              458140100    67016  1126321 SH       SOLE                                    1126321
                                                              1142    19200 SH       OTHER                                     19200
INTL. BUSINESS MACHINES        COM              459200101     7274    56276 SH       SOLE                                      56276
                                                               517     4000 SH       OTHER                                      4000
INTL. PAPER COMPANY            COM              460146103      301     6000 SH       SOLE                                       6000
JOHNSON & JOHNSON              COM              478160104      387     3950 SH       SOLE                                       3950
JOHNSON CONTROLS               COM              478366107      388     5600 SH       SOLE                                       5600
KAISER ALUMINUM CORPORATION    COM              483007100      887   100000 SH       SOLE                                     100000
KIMBERLY-CLARK CORPORATION     COM              494368103     7457   130832 SH       SOLE                                     130832
LEE ENTERPRISES                COM              523768109     8731   286263 SH       SOLE                                     286263
LUBY'S INC.                    COM              549282101     3763   250870 SH       SOLE                                     250870
MELLON BANK CORP.              COM              585509102     1382    38000 SH       SOLE                                      38000
MERCK & COMPANY                COM              589331107      239     3246 SH       SOLE                                       3246
MICROSOFT CORP.                COM              594918104      361     4000 SH       SOLE                                       4000
MILACRON INC.                  COM              172172108     1513    81790 SH       SOLE                                      81790
MINNESOTA MNG & MFG            COM              604059105      183     2100 SH       SOLE                                       2100
                                                               261     3000 SH       OTHER                                      3000
MOBIL                          COM              607059102      265     2681 SH       SOLE                                       2681
McGRAW-HILL COMPANIES          COM              580645109     2157    40000 SH       SOLE                                      40000
                                                               518     9600 SH       OTHER                                      9600
NABISCO                        COM              629526104     5151   119795 SH       SOLE                                     119795
NISOURCE, INC.                 COM              65473P105     1566    60650 SH       SOLE                                      60650
NORFOLK SOUTHERN CORP.         COM              655844108      226     7500 SH       SOLE                                       7500
OMNICOM GROUP                  COM              681919106      508     6350 SH       SOLE                                       6350
                                                               320     4000 SH       OTHER                                      4000
OREGON STEEL MILLS             COM              686079104      939    70500 SH       SOLE                                      70500
PEPSICO INC.                   COM              713448108    18737   484328 SH       SOLE                                     484328
PFIZER                         COM              717081103     2627    24105 SH       SOLE                                      24105
                                                               654     6000 SH       OTHER                                      6000
PG&E CORP                      COM              69331C108    53530  1650261 SH       SOLE                                    1650261
PHARMACIA & UPJOHN, INC.       COM              716941109     2097    36910 SH       SOLE                                      36910
                                                               247     4350 SH       OTHER                                      4350
POLAROID                       COM              731095105    21774   791770 SH       SOLE                                     791770
PROCTER GAMBLE                 COM              742718109       36      400 SH       SOLE                                        400
                                                              1609    18028 SH       OTHER                                     18028
RENAISSANCE RE HOLDINGS        COM              G7496G103     4488   121300 SH       SOLE                                     121300
SAFECO CORP.                   COM              786429100    51404  1164960 SH       SOLE                                    1164960
SBC COMMUNICATIONS, INC.       COM              78387G103    70953  1223330 SH       SOLE                                    1223330
                                                               174     3000 SH       OTHER                                      3000
SCHLUMBERGER                   COM              806857108    64340  1010247 SH       SOLE                                    1010247
                                                               178     2800 SH       OTHER                                      2800
SOUTHWEST AIRLINES             COM              844741108   101888  3273503 SH       SOLE                                    3273503
STERLING BANCSHARES, INC.      COM              858907108      372    27844 SH       SOLE                                      27844
SYSCO CORP.                    COM              871829107      504    16900 SH       SOLE                                      16900
TANDY CORP.                    COM              875382103    11000   225064 SH       SOLE                                     225064
TEXACO                         COM              881694103     1448    23216 SH       SOLE                                      23216
TIDEWATER, INC.                COM              886423102     2699    88480 SH       SOLE                                      88480
TRINITY INDUSTRIES             COM              896522109     1574    47000 SH       SOLE                                      47000
TYCO INTERNATIONAL LTD.        COM                            3300    34828 SH       SOLE                                      34828
                                                               427     4504 SH       OTHER                                      4504
UNICOM CORP.                   COM              904911104     3737    96895 SH       SOLE                                      96895
UNION CARBIDE                  COM              905581104     4968   101917 SH       SOLE                                     101917
                                                               195     4000 SH       OTHER                                      4000
UNION PACIFIC                  COM              907818108       12      200 SH       SOLE                                        200
                                                               327     5600 SH       OTHER                                      5600
UNOCAL                         COM              915289102      906    22860 SH       SOLE                                      22860
USEC INC.                      COM              90333E108     1525   102500 SH       SOLE                                     102500
VARIAN MEDICAL SYSTEMS, INC.   COM                            7148   283075 SH       SOLE                                     283075
VARIAN SEMICONDUCTOR EQUIP.    COM                            4806   282725 SH       SOLE                                     282725
VARIAN, INC.                   COM                            3821   283045 SH       SOLE                                     283045
WEINGARTEN REALTY SBI          COM              948741103    31295   749582 SH       SOLE                                     749582
WELLPOINT HEALTH NETWORKS      COM              94973H108     5121    60333 SH       SOLE                                      60333
WELLS FARGO & CO               COM              949746101    14691   343645 SH       SOLE                                     343645
WEYERHAEUSER                   COM              962166104     4617    67159 SH       SOLE                                      67159
                                                               172     2500 SH       OTHER                                      2500
XEROX                          COM              984121103     2379    40280 SH       SOLE                                      40280
                                                               319     5400 SH       OTHER                                      5400
</TABLE>


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