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Andy Serwer Commentary:
Street Life by Andy Serwer Column archive
3 stocks: Cards and cars yes, Coke no
American Greetings and Ford may have potential, but pass on Coke, despite its pay plan.

NEW YORK (CNNMoney.com) - Did you see the retirement packages of some of the top CEOs according to the AFL-CIO? Number one is Henry McKinnell of Pfizer, who gets $6.5 million. A year! Shocker! Especially since PFE (Research) is down over 30 percent during the past five years, way underperforming the market.

AMERICAN GREETINGS: Kind of a funny story at first blush ... the nation's second largest card company, after privately held Hallmark ... says it is refocusing on the greeting card business. Well ye-ah! Like what else? Well, if you must know it also licenses Care Bear and Strawberry Shortcake characters and has an Internet and ring tone business. This company has done well over the past five years, and going back to basics makes sense here. The card business is as American as salty snacks. Think about it. How many cards/holidays were you aware of 20 years ago? Today we practically celebrate Canadian Tree Day for goodness sake! A solid growth stock (Research).

FORD: Make no mistake about it, this company is in bad shape. Could go bankrupt. It's losing market share and lost $1.6 billion in North America. BUT, it did make $2 billion overall and has $20 billion in cash. Now its COO, Jim Padilla has stepped down. Bill Ford will assume Padilla's responsibilities, which may not be a good thing -- company needs some outside vision here. Still, the stock (Research) is way down and so is its P/E, (actually both around 7. How often do you see that?) At some point someone is going make money here. Is that time now?

COKE: Okay so I like the directors only get paid if profits go up, EXCEPT that the threshold is too low (8% per annum), and what about the dag-gum CEO? How come Neville Isdell doesn't have pay for performance? This stock has gone nowhere but down for eight years. Still has a P/E of 20 though and I don't think management gets it. Pepsi has drank KO's lunch, and will likely continue to do so. Coke (Research) is still not ready for prime time if you ask me.

Loose Change: Hate to say I told you so, but have you seen how Apple has traded since I said it was on the low side and might be a good buy the other day? Up from low $60s to low $70s. Now I didn't know they were rolling out Boot Camp, but my bigger point is that you never know what Steve Jobs has going on. NEVER count him out!.... Saw Cal Ripkin today at CNN, he forgot his cuff links. Told me that rooting for the O's these days can be tough ....

_____________________________

E-mail Andy Serwer at serwer@fortunemail.com

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