Thread ----Microsoft Corp.
Dow Jones Newswires -- July 1, 1999
DJ Lehman Names 10 Uncommon Value Stocks
NEW YORK (Dow Jones)--Lehman Brothers Holdings Inc.'s (LEH) equity research group announced
the selection of its 10 Uncommon Values stocks for 1999-2000 on Thursday.
The stocks are: America Online (AOL), AT&T Corp. (T), Firstar Corp. (FSR), Ford Motor Co. (F),
General Instrument Corp. (GIC), Intel Corp. (INTC), KLA-Tencor Corp. (KLAC), Lilly & Co. (LLY),
Microsoft Corp. (MSFT), Tyco International (TYC).
Lehman has been releasing its list of 10 uncommon value stocks for 51 years. Historically, the
selections have outperformed the Standard & Poor's 500 Index over the 12-month period. The 10
stocks selected in the 1998-1999 period increased 51.2% from the close of June 30, 1998 through June
30, 1999. Over the same period, the S&P 500 was up 21.1%.
Lehman markets a unit investment trust based on the 10 Uncommon Values portfolio.
Lehman's 12-month price targets for its 10 uncommon value stocks are: America Online, $200 a share;
AT&T, $73; Firstar, $42; Ford, $75; General Instrument, $55; Intel, $90; KLA-Tencor, $84; Lilly, $110;
Microsoft, $130; and Tyco, $150.
The stocks are selected by a committee that winnows through picks submitted by all the firm's equity
analysts. In some years the stocks that have been included weren't widely known names; this year's list
includes a number of blue-chip names that are commonly recognized by investors. The unifying feature
of the companies selected is Lehman's feeling that they will offer good value over the next year, said
Jonathan Duskin, senior vice president and equity product manager for the firm.
"Sometimes, the names can be pretty obscure. But this year, the market has given us the opportunity to
select big names and blue chip names. Whether they are household names or not, if they show the
potential for uncommon value, they're on the list," Duskin said.
Since the first uncommon values list was formed in 1949, the portfolio has performed up 251,897%,
compared with 9,227% for the S&P 500, according to Lehman. Of the 500 stocks recommended over
the years, 342 advanced, 155 declined and three were unchanged during the year they were
recommended. Including 1998-1999, 37 of the portfolios have outperformed the market.
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