|
Stock picks by the pros
|
 |
December 5, 2000: 12:44 p.m. ET
Boston-Scientific, Adaptec, Equitable Resources, Textron make it to the list
|
NEW YORK (CNNfn) - Market strategists reviewed stocks in the semiconductor, manufacturing conglomerate, retail and natural gas sectors, recommending companies such as Philip Morris.
As the markets rose in midday trading Tuesday, recent guests on CNNfn commented on the stocks they are buying and why.
| |
 DOUGLAS ALTABEF'S STOCK PICKS:
|
|
| |
|
ADPT
BSX
VSH
|
|
|
"Adaptec (ADPT: Research, Estimates) is a company that has been down dramatically this year and yet their long-term growth rate is in the high teens and they're trading at a 10 or 11 multiple right now," said Douglas Altabef, managing direct at Matrix Asset Advisors.
"Same type of situation for Boston Scientific (BSX: Research, Estimates). They make heart valves, stents. They may have been put into Dick Cheney a week or two ago, with what they do. Same thing: high teens earner, low teens P/E." "Vishay Intertechnology (VSH: Research, Estimates), they make capacitors and resistors that go into chips. Great business. Business is still strong but the stock has sold off significantly and it's now below a 10 P/E. It's amazing."
Adaptec is trading up $1.06 to $12.81 with a 52-week high of $63.56 and a 52-week low of $10.68.
Boston Scientific is unchanged at $13 with a 52-week high of $29.18 and a 52-week low of $12.56.
Vishay Intertechnology is trading up $2.12 to $21.38 with a 52-week high of $62.66 and a 52-week low of $17.12.
| |
JACK KELLY'S STOCK PICK:
|
|
| |
|
TXT
|
|
|
"Textron (TXT: Research, Estimates) has an excellent product mix. You know, not as well known as some of the other names we've discussed. But they own Cessna, which is the leader in the corporate jet market. And that business is doing very, very well. They own Bell Helicopters, a very well-known name in the helicopter business, and will be picking up because of a new government contract next year, in terms of earnings. And a fairly good mix of industrial businesses. So, it's a cheap stock with some very recognized product lines, good management. Our price objective is close to $70. It's trading for about $49.50. I think it will benefit from this increased appetite we've seen in the last week or two for names with more of a cyclical flavor. You know, if and when the Fed does cut rates," said Jack Kelly, multi-industry analyst at Goldman Sachs.
Textron is trading down 38 cents to $48.62 with a 52-week high of $77.50 and a 52-week low of $40.68.
| |
PAUL RABBITT'S STOCK PICKS:
|
|
| |
|
EQT
MO
|
|
|
"Equitable Resources (EQT: Research, Estimates) is a Pennsylvania-West Virginia natural gas distribution pipeline. Also an exploration outfit. Our target on the stock is $80 a share. We use a quantitative system at RabbittAnalytics.com and we give it a score close to a perfect 100. It has about a score of about 95. Revenues growing sharply 30 percent through the nine months ending 9/30/00. Net income up over 70 percent. The stock's at 17 times earnings and the rest of the group sells at about 20 times earnings and with a 20 percent growth rate that should continue for the next five years, it's cheap compared to its growth rate; cheap compared to its group, and its earnings acceleration is starting to pick up. They've spent some money on technology which increases their productivity and lowers their costs. So, they're in good shape," said Paul Rabbitt of RabbittAnalytics.com. "What Philip Morris (MO: Research, Estimates) stock has done is it's been in a pretty sharp downtrend for some time, and it's turned around, and it has some reasonably good momentum. The stock's currently at about $38 a share. We think it can reach up into the $60 area over the next 12 months. Philip Morris still with that momentum, 10 times earnings, with an 11 percent growth rate; and one of the things that's going to be very important as this economy slows and earnings estimates start to crumble, as they already are, is the consistency of the earnings pattern -- and Philip Morris has a very high consistency. By the way, its entire market capitalization right now is equivalent to about one year of sales. So it sells at a one-to-one price-sales ratio. That's a very cheap stock. Double-digit yield is one of the highest yields you'll find, particularly on a high quality balance sheet like this, in the world today."
Equitable Resources is trading up 31 cents to $58.31 with a 52-week high of $64.37 and a 52-week low of $32.25.
Philip Morris is trading up 94 cents to $38.63 with a 52-week high of $39.56 and a 52-week low of $18.68. 
-- 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
|
|
|
|
 |
|
