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Stock picks by the pros
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September 21, 1999: 12:36 p.m. ET
Money managers say CTS, American Express, Wells Fargo are stand-outs
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NEW YORK (CNNfn) - An electronics components manufacturer and two financial services companies are among those in favor with analysts and money managers Tuesday. Here are some of the stocks recent guests on CNNfn are buying and why:
"The stock market is not a democracy," says Donald Selkin, Chief Investment Officer, Joseph Gunnar & Company, of the markets' mid-September shakiness, "(It's) a situation where the generals are running to meet the troops on the upside; unfortunately, it`s sometimes resolved by the generals coming down to meet the troops instead."
Selkin wagers the following stocks will help win the battle:
CTS Corp. (CTS): "They make electronic components for the original equipment manufacturers. In February, they bought the Motorola (MOT) division that makes parts for wireless cell phones," Selkin said. "Well, it came down a little bit..made a new high, dropped a little bit, and is now on the way back up. They have the potential strong earnings growth."
A good stock "if you believe in the future of wireless," he added.
Concord Camera (LENS): "They make the plastic boxes for disposable cameras. The big thing here is that they are going to come out with a digital camera for less than $295, right before Christmas," Selkin said. "They announced a national share buyback recently. Also, the stock is trading at a very, very low multiple relative to its growth rate, it has a 12-to-1 P/E. So this is kind of a value stock that could move up a few points."
"Boring but beautiful" is the way Christopher Davis, portfolio, Davis Selected Advisors, describes his picks.
"In the financial area," he explained, investors are best advised to stick to "sensible" stocks in "businesses that don`t become obsolete, companies like American Express (AXP), Wells Fargo (WFC), but also...those in the aggregates area, Martin Marietta Materials (MLM), or plumbing fixtures like Masco (MAS), as well as technology companies like Hewlett-Packard (HWP)."
Jim Melcher, president, Balestra Capital, is sticking to the oil services companies, saying "the sector is a pretty good bet. These companies, if they have the cash flow, will drill and they will use the service companies. Take the obvious ones, Schlumberger (SLB) or Halliburton (HAL), they look really good."
Melcher also likes some of the integrated oil companies "like Exxon (XON) and Texaco (TX)," he said. "There`s also a little company called Petroleum Geo-Services ASA (PGO) which is pretty undervalued, and it ranks in with the other service companies; they`ve almost got to do well here."
The views presented here are solely those of the analysts quoted. They do not represent the opinions of CNNfn on whether to buy or sell shares of a particular stock.
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