Stock recommendations from Alan Ackerman on NBR on Friday post close:
KANGAS: Well, Alan last time you were with us, you liked General Motors (GM), General Electric (GE) and IBM, GE and IBM have had 2 for 1 splits and are way up since then. Are you staying with them or selling some?
ACKERMAN: I'm going to stay with the core positions, Paul. I think that they still have some room to run.
KANGAS: You also liked McDonald's (MCD) as "hold", it was 37 now it is around 41. Home Depot (HD), you said buy around 57, it's in the early 60's. You stay with those?
ACKERMAN: More people are eating out, yes, I would stay with McDonald's. And I'd also stay with Home Depot, although I think it's momentum will slow a bit.
KANGAS: Icon (ph)you liked at 14, it was taken over by Qwest (ph), I believe, worth about $28 a share in Qwest(ph)stock now. And a little company you liked Sight Resource (VISN), where you have significant position, was at 2 ¼, it's now almost 4, what do you do with that?
ACKERMAN: I'm holding that, I've raised my target to 7-8 (ph), over the next twelve months. My feeling is this a consolidator in the optical care business, and my feeling is that they're also going to benefit from laser procedures.
KANGAS: OK. You liked Pepsi (PEP) back then 39, it is down 3 points. What do you do?
ACKERMAN: I'd sell Pepsi, it doesn't have enough fizz at the present time.
KANGAS: OK. New recommendations. We just have less than a minute.
ACKERMAN: EMC Data (ph) is the guerrilla of the data storage industry. Tremendous growth record. Second in growth over the last decade to Dell (DELL). The company has about $3.9 billion in revenues, shooting for 10 billion by the year 2001. I like it. The stock has split 6 times in 11 years, just recently split. I own a lot of it personally.
KANGAS: OK. Anything else?
ACKERMAN: Yes, I like El Paso Electric (EE). Small electric utility in Texas, New Mexico, recently came out of bankruptcy. Doing very well. Developing a lot of cash. The company could well be an LBO candidate. Earnings projections are $0.90 by the year 2000. My feeling is this stock could trade at 12 or $13.
KANGAS: And quickly, we have about ten seconds left if you have got one other.
ACKERMAN: Oracle (ORCL), I think the Oracle announcements coming out June 15 or 16 will be positive for the stock. Wall Street went sour on it, but I think Oracle has a real way to go on the upside.
KANGAS: Very good Alan. Thanks very much for sharing your thoughts with us.
ACKERMAN: Good to be you with you. Paul.
KANGAS: My guest, Market Monitor Alan Ackerman, Fahnestock & Company.
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