Salomon reveals 10-plus exceptional names
By Julie Rannazzisi, CBS MarketWatch
Last Update: 4:33 PM ET Jul 8, 1999
NEW YORK (CBS.MW) -- Salomon Smith Barney unleashed a list of
15 stocks it said represents appealing investment opportunities for the
upcoming year.
Salomon's list, dubbed "Ten+ Exceptional Names,"
contained: Albertson's (ABS: news, msgs), The
Allstate Corp. (ALL: news, msgs), Amgen
(AMGN: news, msgs), Bank of New York (BK:
news, msgs), Dayton Hudson (DH: news, msgs),
Electronic Data Systems (EDS: news, msgs), Fort
James Corp. (FJ: news, msgs), Honeywell (HON:
news, msgs), Lucent Technologies (LU: news,
msgs), Marsh & McLennan Corp. (MMC: news,
msgs), MCI WorldCom (WCOM: news, msgs),
Mobil Corp. (MOB: news, msgs), Pitney Bowes
(PBI: news, msgs), Raytheon Corp (RTN.A: news,
msgs) and Tyco International (TYC: news, msgs).
Only three of the stocks on last year's list made it to
this year's compilation: The Allstate Corp, Amgen
and Honeywell, the investment bank said Thursday.
"There is a technology orientation this year," said
Bruce Beardslee, managing director of equity
research at Salomon. However, he added, the
stocks in last year's list were even more weighted in the tech sector.
Salomon began compiling its "exceptional names" list in 1994. Last year's
picks have cumulatively surged by 42.8 percent year-over-year, which
compares to the 23.3 percent gain in the Standard & Poor's 500 index
($SPX: news, msgs) over the same period.
Salomon's list has consistently fared better than the S&P over the past five
years. Here's the performance of the Ten+ stock picks since 1994: a 33
percent rise was recorded in 1997 compared to a 30 percent increase in
the S&P; a 41.5 percent gain took place in 1996 as opposed to a 34.7
percent rise in the S&P; the list put on 29.4 percent in 1995 compared to
the S&P's 25.1 percent; and a 28.1 percent pop was seen in 1994
compared to the S&P's 26 percent.
"Our investment strategists select 15 companies they consider to be
noteworthy investments for the coming year...The 'Ten+ Exceptional
Names' are those companies that we believe will outperform the other
2,600 companies we follow globally," John Hoffmann, Director of Global
Equity Research at Salomon Smith Barney, told clients.
Global markets and industry sectors are surveyed for companies with
solid fundamentals and growth potential over the next year to arrive at the
Ten+ compilation, Hoffmann added.
Of the 15 stocks
contained on the list, six
were trading lower
Thursday. Fort James
trailed, losing 15/16, or
2.4 percent, to 38
11/16.
The largest percentage
gainers on the list were
MCI WorldCom, which put on 5.4 percent to 89 13/16, followed by
Electronic Data Systems (see chart), which added 4.6 percent to 59 5/8.
Last Thursday, Lehman Brothers revealed its 10 "uncommon values"
stock picks, with a selection that was also chock-full of tech shares. Tyco
is the only stock shared by both the Salomon and Lehman lists.
Lehman's list included: America Online (AOL: news, msgs), AT&T (T:
news, msgs), Firstar Corp. (FSR: news, msgs), Ford Motor Co. (F:
news, msgs), General Instrument Corp. (GIC: news, msgs), Intel (INTC:
news, msgs), KLA-Tencor (KLAC: news, msgs), Eli Lilly (LLY: news,
msgs), Microsoft (MSFT: news, msgs), as well as Tyco.
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