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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (52548)	7/21/1999 1:40:00 PM
From: accountclosed	Respond to of 86076

lol!!!!

To: MythMan who wrote (52548)	7/22/1999 8:56:00 AM
From: John Pitera	Read Replies (1) \| Respond to of 86076

Speaking of CAT I think that I've found one of the reasons it's held up well since the announcement last Friday. This is from SB's Investor weekly that from last Friday. STOCKPICKER'S CORNER Earnings Powered Performance Renewed earnings growth expectations have been the major catalyst behind this year's more egalitarian market. Inves-tors realization that a lower interest rate environment will no longer drive multiple expansion focuses all eyes on earn-ings growth. As investors attempt to replicate the 20% plus returns of the past two years, the question investors must ask is which companies can actually deliver the earn-ings, and more importantly, which companies offer the best expected return. At a time when valuations are relatively high, an increas-ing number of the big-cap issues are struggling to produce the degree of earnings growth which investors have be-come accustomed to expect for many years. Similar to the old Nifty 50, we are seeing individual issues such as Gillette# (G, $43, 2-M) and Campbell Soup# (CPB, $43, 3-L), fall by the wayside because of shortfalls in growth. Other companies such as Avon Products (AVP, $53, 3-L) already appear fully valued. Recovery in the global economy may help the prospects of some recent laggard multinationals; however, current valuations appear to be already discounting better times. Moreover, a recovering world economy is likely to have a proportionately greater impact on profits of most of the cyclical sensitive issues, many of which are valued more reasonably than are some of the big multinationals. Cyclicals We Like We recommend that investors focus on brand name multi-national franchises such as Caterpillar# (CAT, $59, 1-H), Deere & Co. (DE, $36, 1-H), Schlumberger (SLB, $63, 1- L), and Halliburton (HAL, $46, 1-L), which we believe will generate earnings growth in excess of many of the large cap, branded consumer staples stocks that investors have crowed into during the past to years. While long-term we do not think these stocks will be capable of deliv-ering earnings growth in excess of the general market, short term (one to two years), they have the potential to double and triple earnings. Although these stocks have had nice