for what it's worth (ha ha), worth magazine has some picks and pans in this month's issue. under "stocks to consider," $45 is the cited fair value for SFSK.
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MICHELLE CLAYMAN, founder and chief investment officer of New Amsterdam Partners, inhabits a world according to GARP. No, not the fictional character but "growth at a reasonable price." By picking highly liquid large and midsize companies with positive earnings growth, modest valuations, and good prospects for outperforming the market, Clayman aims to beat the Standard & Poor's 500 Stock Index. And she has: Through September 30, New Amsterdam's net ten-year total return was 18.3 percent, versus 17.3 percent for the S&P 500. In the present market, she favors "companies likely to benefit from global chaos," such as generic-drug maker Watson Pharmaceutical and Furniture Brands.
AES
(NYSE: AES, $38) $50 (Fair Value)
-- Builds and operates electric plants in high-demand markets
-- Less risky emerging-markets play
Amgen
(Nasdaq: AMGN, $79) $88
-- Epogen and Neupogen vault firm into big leagues
-- May have new hit drugs in pipeline
BellSouth
-- Defensive play in volatile market
-- Below-market valuation and above-market earnings growth
EMC
(NYSE: EMC, $65) $70
-- Capitalizing on geometric growth in data storage, driven by Internet< br> -- Solid profit outlook and business plan
Furniture Brands
(NYSE: FBN, $21)$30
-- Brand-name (Thomasville, Lane) producer with innovative retail alliances
-- Bargain-basement stock valuation
Health Mgmt. Associates
(NYSE: HMA, $17) $24
-- In many markets, the only hospital in town
-- Well run, with solid earnings record
Safeskin
(Nasdaq: SFSK, $21) $45
-- Leading manufacturer in fast-growing powder-free latex-glove market
-- Plants in low-cost Thailand, Malaysia
Safeway
(NYSE: SWY, $46) $52
-- Eye-popping profit margins
-- Skilled at acquiring other chains
-- Recession-resistant business
Schering Plough
(NYSE: SGP, $104) $112
-- Claritin is a cash cow
-- Very promising new hepatitis-C drug
-- Ace overseas marketing, expansion
Watson Pharmaceutical
(NYSE: WPI, $54) $60
-- Considerable pricing power in generic-drug market -- Strong in women's health arena
worth.com |
