|
Stock picks by the pros
|
 |
December 1, 2000: 1:48 p.m. ET
Corning, Gillette, New Focus, Siebel Systems, EMC among the selected
|
NEW YORK (CNNfn) - Market strategists reviewed stocks in the fiber optics, natural gas, technology and consumer sectors, recommending companies such as Houston Exploration.
As the markets gained at midday Friday, recent guests on CNNfn commented on the stocks they are buying and why.
| |
 PHIL DOW'S STOCK PICKS:
|
|
| |
|
CID
THX
|
|
|
"As kind of a special in energy, we think that people ought to hedge high natural gas bills this winter. We think also there's some opportunities in natural gas. But two smaller names that are great finders of natural gas: Chieftain International (CID: Research, Estimates), and then a company called Houston Exploration (THX: Research, Estimates)," said Phil Dow, stock market strategist for Dain Rauscher Wessels.
"They search, and they're very accomplished finders of natural gas. Both have more than 80 percent of their reserves in natural gas. And they're replacing their reserves about as quickly as anybody -- any of the companies that compete in that business. These companies are valued more on their cash flow than earnings. And the cash flow multiples on both of these companies are about as low as they get, so we think it's a very opportune time. The only risk is these are smaller companies. Houston's only about a $700 million market cap. Chieftain's about half that size. So we think you have got to be a little bit patient, but we think they're great opportunities for investors," Dow said.
Chieftain International is trading up 12 cents to $22.38 with a 52-week high of $23.62 and a 52-week low of $13.37.
Houston Exploration is trading up 88 cents to $27.38 with a 52-week high of $28.31 and a 52-week low of $14.50.
| |
JON BURNHAM'S STOCK PICKS:
|
|
| |
|
EMC
SEBL
SUNW
G
|
|
|
"With a market that's in free fall, as this one has been in the last week or two, I don't know where you'd buy some of these things, but stocks like EMC (EMC: Research, Estimates), and Siebel Systems (SEBL: Research, Estimates), and Sun Microsystems (SUNW: Research, Estimates). These are wonderful companies. They're expensive, and they're still expensive even after the brakes that they've had, but they've have enormously increasing revenues, and enormously increasing earnings, which is probably going to continue. And EMC's had a tremendous drop. Siebel has broken, as of when I came down here a little while ago, pretty much in half in three weeks, and these stocks will come back, and they'll rally and they'll lead the market higher when the market turns," said Jon Burnham, chairman and CEO of Burnham Securities.
"Gillette (G: Research, Estimates) we bought recently because people have to keep shaving. They still need to use cosmetics and all these things. Gillette has had its problems, mostly with the euro. They're going to continue to have their problems, but the stock is way down. It' at a very reasonable price now. I think its discounted all of their problems. So I think it's a good stock to own here. It's not going to go through the roof, but it' not going to go down much either, I don' think," Burnham said.
EMC is trading up $4.88 to $79.25 with a 52-week high of $104.93 and a 52-week low of $35.06.
Siebel is trading up $8 to $77.87 with a 52-week high of $119.87 and a 52-week low of $26.90.
Sun Microsystems is trading up $4.69 to $80.75 with a 52-week high of $129.31 and a 52-week low of $51.31.
Gillette is trading down 13 cents to $33.75 with a 52-week high of $45.43 and a 52-week low of $27.12. 
-- compiled by Staff Writer Lucy Banduci
* Disclaimer
|
|
|
|
|
|
Track your stocks
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
