BY JOHN H. WALKER
L’Observateur

So you have a little extra money that old Aunt Hattie left you in her will and you thought that despite the economic downturn, you’d try your hand at investing.

According to a list compiled by Business Week magazine and based on performances through Dec. 9, here’s 25 investment areas to avoid:

• R. H. Donnelley — Publishers of Yellow Pages telephone directories, the company has lost 99 percent of its value this year. While ad sales dropped 8 percent in the third quarter, investor concerns are based on the debt load.

• Insurers, including AIG (American International Group) and Genworth Financial (which comprises some former financial businesses of General Electric). AIG needed a federal bailout and Genworth is down 91 percent.

• Investment banks — not a good investment

• CROCS — After its stock sored more than 70 percent in 2007, stock for the makers of these ugly-but-comfy shoes is down 95 percent.

• Bond insurers

• REITs — real estate investment trusts

• Automakers — This does not only deal with the carmakers themselves, but with supplier-related industries. Lear, for example, is down 90 percent.

• Oil and gas exploration — After a record $147 per barrel in July, it dropped to less than $50 this month. Anything else you need to know?

• Regional banks, such as National City (-87 percent) and Wachovia (-83 percent). National City is being purchased by PNC Financial Services and Wachovia is now part of Wells Fargo.

• Solar Energy — Despite Al Gore and ‘An Inconvenient Truth’ the drop in fuel priced cooled this sector. Evergreen Solar, up more than 50 percent in 2007, is down 85 this year. First Solar is down 55 percent.

• Manitowoc — Makers of huge construction cranes, the economic slowdown has slammed this firm.

• Brunswick, as in makers of boats, marine engines and bowling and billiard supplies, is in a death spiral — dropping 47 percent in 2007 and 82 percent this year. That means a share that traded at a hypothetical $100 at the end of 2006 dropped to $53 last year and $9.54 this year. Ouch.

• Oil and gas refineries, the only part of the energy sector to not benefit from the fuel price runup. Valero is down 72 percent and Tesoro 80 percent.

• Office Depot, which is closing 10 percent of its stores and laying off thousands, is off 81 percent (compared to rival Staples at minus-22 percent). Maybe Office Depot need an Easy Botton.

• Steel companies, including AK Steel (minus 81) and U.S. Steel (minus 70) are indicative of industry-wide woes. ThyssenKrupp, the German steelmaker heavily courted by Louisiana, is off 64 percent and talking about shortening work weeks.

• Stock exchanges

• Major newspaper companies, such as Tribune — which filed bankruptcy because of the heavy debt load taken off to purchase the company — Gannett (minus 78 percent) and McClatchy (minus 82 percent). As a result of declining revenues, many large groups are beginning to copy smaller, hometown papers (like the one you are reading) and adding more local stories.

• Health insurers, where political questions cause worry that a Democrat-led health plan would negatively impact bottom lines. Coventry Health Care is down 80 percent and United Healthgroup 63 percent.

• Sprint Nextel … down 30 percent in 2007 and 79 percent this year despite a new CEO and promise everything commercials. Can you hear me now?

• Emerging markets, such as China, Russia, Brazil and India.

• Furniture makers, who are going to China in increasing numbers. Sealy is down 75 percent and Laz-Z-Boy 63 percent.

• Abercrombie & Fitch … refuses to reduce prices to attract sales shoppers. As a result, its stock is down 74 percent compared to competitor The Gap’s 36 percent.

• Whole Food market … pricey food equals fewer customers … and a stock drop of 73 percent.

• Junk corporate bonds, where a typical high yield bond is down 31 percent while a safe, government issued bind is up 18 percent.