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Hoffman likes Citigroup
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July 7, 2000: 3:35 p.m. ET
Value Line market strategist also says avoid Western Digital, McDonalds
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NEW YORK (CNNfn) - Alan Hoffman, stock market strategist at Value Line Asset Management, said Friday that investors should avoid Western Digital and McDonalds and that Citigroup, Fifth Third and American International are  better bank buys than First Union.
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Name: Unknown
Question: Western Digital (WDC: Research, Estimates), McDonalds (MCD: Research, Estimates). What is your short-term outlook on Western Digital and McDonald's?
Answer: Western Digital is a major player in the disc-drive industry. While we see computer sales flat to slowing, components like disc drives, as a commodity business, are very tough in terms of pricing power. Both short- term and long-term, Western Digital should be avoided. As for McDonalds, the U.S. part of its business is still slow, and overseas growth has not been as dynamic recently as in prior years. The stock is ranked four - or below average - in the Value Line timeliness ranking system, so I would not be a buyer.
Name: Jerry, North Carolina
Question: BB&T (BBT: Research, Estimates), First Union (FTU: Research, Estimates). Will these banks ever go up?
Answer: First Union got caught with indigestion after several large mergers. Eventually, we think the company will be able to work out the kinks, but with a ranking of 5, or lowest, in the Value Line system, it is unlikely to grow robustly over the next year.
Name: Carl, North Carolina
Question: First Union (FTU: Research, Estimates). Your analyst on Friday,  July 7, said he would stay away from First Union, while many others say hold it if you own it. Assuming it's time to give up on First Union, what financial stock would you suggest to replace it in a diverse portfolio at relatively the same price per share?
Answer: In the financial services area, I suggest that you take a look at Citigroup (C: Research, Estimates), Fifth Third Bancorp (FITB: Research, Estimates) and American International Group (AIG: Research, Estimates). These are all very healthy companies, some with broad international exposure and some with purely domestic businesses.
Name: Joe, New Jersey
Question: AT&T (T: Research, Estimates), AT&T Wireless (AWE: Research, Estimates). I will be closing on a home in the next four weeks and need to sell some of my stocks. Which stock has a better outlook, AT&T or AT&T Wireless?
Answer: I'd hang on to the Wireless part of your portfolio. AT&T is still trying to work out its merger with Media One, and I don't think it has much near-term appreciation potential.
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-- compiled by Staff Writer Mark Gongloff
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