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GM's a gem: Dreman
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September 11, 2000: 4:37 p.m. ET
Dreman Value Management strategist also likes Washington Mutual
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NEW YORK (CNNfn) - David Dreman, stock market strategist at Dreman Value Management, said on Monday he thinks investors are better off with GM stock than with GM Hughes stock, Washington Mutual looks like a good  buy, Dun & Bradstreet seems to be making a comeback, and McKesson and Sovereign Bancorp could also be worth a look.
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Click here to send your stock questions to the next guest
Name: Susan, Michigan
Question: General Motors (GM: Research, Estimates), GM Hughes (GMH: Research, Estimates). In relation to Carl Icahn's notice of potential purchase of stock, is it better to own GM or GM Hughes stock?
Answer: I would own GM because it owns the majority of Hughes and should therefore be the major beneficiary of any buying because of Icahn's interest. GM stock is cheap and over time should trade at significantly higher prices.
Name: Pete (location unknown)
Question: Washington Mutual (WM: Research, Estimates), Mellon Financial (MEL: Research, Estimates). What is the outlook for Washington Mutual and Mellon Banks? Is this a good time to invest in them?
Answer: I like them both, particularly Washington Mutual, the largest savings-and-loan on the West Coast. I think the company can generate 10-to-12-percent earnings growth over time and looks like good value at current prices.
Name: Unknown
Question: Dun & Bradstreet (DNB: Research, Estimates). With the spin-off, is this a good investment?
Answer: It had been a disappointing company for some years, but seems to be coming back nicely. I think it's well worth looking into at its current prices.
Name: Rob, California
Question: McKesson HBOC (MCK: Research, Estimates). Is now a good time to buy?
Answer: McKesson stock dropped from $90 after the acquisition of HBOC  to as low as $17. Since then it's recovered to the mid $20s. McKesson's growth is somewhat below street targets at this point in time, but it's had a long-term earnings growth record of better than 15 percent. It's a stock worth looking at, at this price.
Name: Steve (location unknown)
Question: Sovereign Bancorp (SVRN: Research, Estimates). What is your outlook?
Answer: Regional banks are still below their highs of 1998 and present good value. Sovereign has always been a well-managed bank with above- average growth. It's a stock that should do well over time and could be a possible acquisition.
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If you do not see an answer to your e-mail here, it is because our guest does not cover the company.
-- compiled by Staff Writer Mark Gongloff
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