(FORTUNE Magazine) – Foreigners are on a U.S. acquisition spree that is giving a new twist to the slogan ''Buy American.'' Economists at the Goldman Sachs investment banking firm estimate that foreign companies spent $40 billion to scoop up American firms in 1987. So far in 1988, foreign acquirers have been shelling out money at a $100 billion annual rate. The fallen dollar and the October stock market crash set off the latest binge. But Steven Einhorn, a top investment strategist at Goldman Sachs, believes politics also plays a part: ''There's a sense overseas that the next U.S. President won't be as hands-off about acquisitions as Reagan has been. Seen in that light, 1988 is the window of opportunity.'' Who does not dream of owning stock in a company taken over at a huge premium over the current price? Getting positioned for such a windfall, however, calls for selectivity. Prudence dictates concentrating on industries in which foreigners have already been shopping or appear likely to. The stocks should also be sound investments, even if buyers never come knocking. Foreigners have generally been avoiding high-tech industries. Norman Weinger, an investment strategist at Oppenheimer & Co., suggests looking for companies with excellent consumer franchises and with price/earnings multiples well below those paid for recent acquisitions in their industry. Department stores are a dandy sector to reconnoiter, and Federated Department Stores illustrates what can happen. As of mid-March, Campeau Corp. of Canada was offering $6.2 billion to counter a similar offer from R.H. Macy. Before Campeau made the initial move, Federated stock was selling for about $37 a share, or ten times projected 1988 earnings. The latest offer of roughly $68 a share works out to a P/E of 18. Thomas Tashjian, a security analyst for the Seidler Amdec brokerage firm in Los Angeles, notes that Ames Department Stores and Dayton Hudson are both priced well below that multiple and have good earnings potential. Ames has a lot of old, inexpensive leases and has taken measures to curb theft at its stores. The stock recently went for $15, or 12 times Tashjian's projection of 1988 earnings per share. Dayton's profits were depressed last year as the company turned around its ailing Mervyn's division and opened 73 new Target discount stores. With that over, Tashjian expects the company to lift earnings from $2.41 a share in 1987 to about $3.35 this year. Dayton shares recently sold at $38, or 11 times his 1988 earnings figure. The chemical industry is short of capacity and bubbling with profits. Many analysts suspect that takeovers are at hand, with foreign or domestic acquirers looking to increase capacity and market share. Jeffrey Cianci of Eberstadt Fleming likes Olin and Pennwalt for their rosy earnings prospects. He calculates that Olin, a diversified producer of chemicals, will increase earnings from $3.30 a share in 1987 to $4.50 this year, with a further 35% earnings jump in 1989. The stock was selling recently at $51 per share, or 11 times expected 1988 earnings. Pennwalt's earnings will grow by a ''mere'' 25% annually in the next two years, Cianci figures. Shares of PPG Industries look fetching at $39, only 11 times what Kenneth Kulju of Fahnestock & Co. expects the company to earn this year. Kulju notes that the market is jittery about the housing and auto industries, which use PPG's glass and paint. But he expects earnings to climb 13% in 1988. In pharmaceuticals, takeover speculation has run up the price of Rorer Group shares to 18 times estimated 1988 earnings. But Viren Mehta, an analyst for S.G. Warburg, thinks American Cyanamid and Warner-Lambert -- selling respectively at multiples of 16 and 14 -- would also appeal to a foreign buyer. Cyanamid, which gets 39% of its revenue from pharmaceuticals and 25% from chemicals, has just completed a major restructuring and is pushing research vigorously. Warner-Lambert has solid brand names such as Listerine and Rolaids, and a cash cow in Trident sugarless chewing gum. In the field of personal care products, Gillette is the current favorite of takeover speculators and is selling for 16 times projected 1988 earnings. Less pricey alternatives are Tambrands, the maker of Tampax, and Colgate. Bonita Austin, an analyst for Wertheim Schroder, says Tambrands has long been a ''tremendous cash generator and a low-cost producer.'' She thinks earnings could grow by 12% annually for the next five years. Gillette is a more likely takeover candidate than Colgate, Austin says, but Colgate shares are more attractive at a P/E of 13. She adds that Colgate's earnings could increase 14% a year through 1992. Moving from the bathroom into the kitchen, one finds an intriguing candidate in National Presto, a maker of such small appliances as pressure cookers, corn poppers, and coffee makers. The company is run conservatively by the Cohen family of Eau Claire, Wisconsin, which owns about 30% of the stock. Over the past 12 years the company has accumulated about $147 million in cash, or about $20 per share, and it has only $6 million of debt. Shares were selling recently for about $31, or 12 times estimated 1988 earnings. But if the cash hoard is factored out, Presto shares were recently selling for $10, or eight times earnings from operations. But would the Cohens sell? Barry Gluck of Ladenburg Thalmann believes that if the price is right, they would have to consider it.

CHART: COMPANY REVENUES NET STOCK PRICE RECENT latest four INCOME RANGE PRICE quarters in millions last 12 months P/E in millions multiple*

Dayton Hudson $10,680.0 $228.4 $21.50-$63.00 $38.50 16

Colgate $5,647.5 $54.0 $28.00-$52.625 $43.75 14.7

PPG Industries $5,182.6 $377.1 $27.50-$53.50 $39.00 12

American Cyanamid $4,166.1 $275.6 $29.00-$57.00 $50.00 18.1

Warner-Lambert $3,484.7 $295.8 $48.25-$87.50 $71.50 17.2

Ames $2,050.1 $20.1 $7.50-$29.75 $15.25 28.2

Olin $1,930.0 $78.0 $32.625-$56.25 $51.50 15.4

Pennwalt $1,175.0 $48.0 $34.75-$68.25 $52.75 13

Tambrands $538.9 $76.6 $44.75-$71.125 $56.25 16.3

National Presto $101.7 $16.9 $26.125-$40.375 $31.00 14

*Multiple based on earnings for latest four quarters, exclusive of nonrecurring items.

CREDIT: NO CREDIT CAPTION: IN THE CROSSHAIRS? Bargain hunters from abroad are looking for companies with proven brands and franchises like Target stores, a discount division of Dayton Hudson. The shoppers figure that it's cheaper to buy than to build these days. DESCRIPTION: See above.