NEW YORK (CNN/Money) -
With the Dow still pressing to reach 10,000, two money managers appeared on CNNfn to suggest some stocks they believe will continue to perform even if the average doesn't meet the key psychological level.
Lori Wachs, portfolio manager with Delaware Investments, sees the recovery in tourism benefiting Tiffany.
| Lori Wachs' picks
|
|
|
|
|
"Foreign tourism really impacts it. [Tiffany's] flagship New York store delivers almost 14 percent from Japanese tourists and it traded off tremendously the beginning of the year, down 40 percent due to the war and SARS," Wachs noted. "The stock has really come back nicely as its U.S. comp-store sales were up 16 percent last quarter, so should be a lot of little blue boxes out there this Christmas."
Wachs' second selection is Coach. "They have totally reinvigorated and re-brand and re-merchandised. They brought in a new head merchant a few years ago and they were traditionally known as the basic, conservative leather goods company," she said. "And they launched a signature C line that has the initials all over it and they've become the must-have fashion accessories company out there right now."
Cheesecake Factory rounds out Wachs' picks.
"As evidenced by the long lines, over an hour wait at that restaurant, people love the food and almost better than the food are the financial returns that this company generates. They have average unit volumes of $11 million and sales per square foot of $1,000, which is more than double the industry average," Wachs said. "The breadth of their menu offerings, high energy atmosphere. Their average check, though, is only $15, which usually surprises people because that's not that different from Red Lobster -- but the perceived value is much greater there."
Funds under Wachs' management own stakes in the companies mentioned.
Shares of Tiffany & Co. (TIF: up $0.05 to $42.65, Research, Estimates) are in a 52-week range of $21.60 to $49.45.
Coach (COH: down $0.77 to $35.93, Research, Estimates) shares have been between $14.51 and $40.84 in the last year.
Shares of the Cheesecake Factory (CAKE: down $0.11 to $42.19, Research, Estimates) are in a 52-week range of $27.27 to $44.79.
Jim Glickenhaus, portfolio manager with Glickenhaus & Co., likes the dividend of Enterra Energy Trust.
"The reason I like it is because it has converted to a royalty trust. They have these finds that they are proven reserves and they are going to be selling them, in both natural gas and oil," Glickenhaus said. "I think they're going to be able to pay their dividend. They said they would. And I think that it's a very good buy at this price because you're buying something that has almost a 13 percent yield."
Glickenhaus' second selection is Texas Instruments. "I still feel they're the premiere analog to digital, digital to analog company and this is the way the future's going to go and this is a company you want to own," he noted. "And I think the fourth-quarter results are going to be surprisingly good with all the picture telephones and new phones being sold."
Countrywide Financial is Glickenhaus' final pick. "They are both providing and servicing a gigantic number of home mortgages. They are branching out into title insurance and banking things. I think that this company, with its earnings, is still incredibly cheap at $107," he said. "It was an incredible buy at $22 where we entered the stock a little while ago. I think the stock's going to go to $190 or $200."
| Jim Glickenhaus' picks
|
|
|
| Enterra Energy Trust (EENC)
|
|
| Countrywide Financial (CFC)
|
|
|
|
Funds under Glickenhaus' management own stakes in the companies mentioned.
Shares of Enterra Energy Trust (EENC: up $0.21 to $9.95, Research, Estimates) have been between $2.80 and $10.91 in the last year.
Texas Instruments (TXN: down $0.30 to $28.06, Research, Estimates) shares are in a 52-week range of $13.90 to $31.67.
Shares of Countrywide Financial (CFC: down $0.78 to $106.92, Research, Estimates) have been between $48.08 and $108.88 in the last year.
|
