Re: Barron's Beaten Down Picks
RAYS
5 year eps growth est= 20%
Forward P/E of 13x (based on FY-98 est)
Price/Growth(PEG) =.65
RAYS popped up on a computer screen run by Jeff Warantz at Soloman Smith Barney. Screening Criteria were:
Stocks selling >20% below 2 year moving avg.
Min. Mkt Cap > 300 mill
Annual eps growth estimates >14%
and finally a SollyS/Barney rating of Outperform or above required
Other finalists were (by alpha) AAM, ABRX, COMS, FDC, GML, FEET,
KNT, MRR, NSCP, PAIR, PPOD, PLH, PHL, SKS, SCHL, SJM, TCA, TLZ & TKN
Beware THE PROBLEM WITH COMPUTER SCREENS IS THEY DON'T DO FUNDAMENTAL ANALYSIS. They only thing that really pops out is that most of these companies were FANTATICALLY OVERVALUED one or two years ago. Things won't get better for RAY's until they begin posting double digit Comp Sales again; IF EVER. |
