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

To: MythMan who wrote (54235)	8/2/1999 1:07:00 PM
From: John Pitera	Read Replies (1) \| Respond to of 86076

Ho Ho HO....SSB reiterated how much they like CAT again this week. -ng- On balance, economist Kim Schoenholtz believes that the chances of a surge in the dol-lar are limited, and the most likely scenario is that the dollar remains in a trading range for the remainder of the year. Stocks for a Weaker Dollar Environment Assuming that the dollar's appreciation is largely behind us, equities such as those included in our Global Growers theme are most likely to benefit. Granted, all of these names are large-cap multinationals, many of which have valuations that we believe may already discount much of their growth potential. However, selected names on this list are likely to benefit not only from improving funda-mentals as the world recovers, but also from the positive impact of a weaker U.S. dollar. Given the scenario of a softening dollar, we believe com-panies with significant global exposure, such as those on our Global Growers list, are likely to reap the largest ben-efits. While other multinationals such as Procter & Gamble# (PG $88 1/8, 3-L) and Coca-Cola (KO, $62 1/ 2, 2-L) also seem well poised to benefit from global growth and a softer dollar, we are less bullish on their prospects given their already high valuations. We would especially highlight those names with strong fundamentals and an element of value, such as Caterpillar# (CAT, $60 1/8, 1- H), Fluor# (FLR, $39 13/16, 1-H), Intel (INTC, $67 9/16, 1-M), and Schlumberger (SLB, $59 1/8, 1-L). We also continue to favor Caterpillar, Fluor, and Schlumberger as companies that are likely to experience strong cyclical earnings growth over the next two years. The market has not discounted this potential into the com-panies' stock prices, in our opinion, and significant appre-ciation is likely if earnings achieve our expectations.