To: EL KABONG!!! who wrote (1371 ) 9/6/2006 11:01:21 PM From: EL KABONG!!! Respond to The following stocks were proffered by TDWaterhouse (now TD Ameritrade) as undervalued growth stocks, as suggested by research provided by S&P. I don't necessarily agree with any or all of the stock selections, but I do think that collectively, they're worthy of consideration in an otherwise overall diversified growth/value portfolio. Further research would be needed to determine whether or not to take a long position, and what percentage of the total portfolio might be reserved for any or all of these suggested stocks.tdwaterhouse.com Five Undervalued Growth Stocks Provided by Standard & Poor's, a leading independent research firm on Wall Street. CHATTEM, INC. (CHTT). We believe this maker of branded health and beauty aids is well positioned in the personal care category, given favorable demographics and what we regard as a highly profitable business model. Although new products introduced in fiscal 2006 (ending November) have mostly gotten off to a slow start, strong sales of some of its core products have helped offset this slowness. We think 2006 is an investment year for CHTT and expect profitability to recover in 2007. (5 STARS, Strong Buy)HELIX ENERGY SOLUTIONS GROUP, INC. (HLX) . This energy services company specializes in the exploitation of deepwater oil fields in the U.S. Gulf of Mexico. It also operates an exploration and production segment. HLX more than doubled its “proved” oil/natural gas reserves via the recent acquisition of Remington Oil & Gas Corp. Remington aside, we expect HLX to benefit from rising deepwater Gulf development and ongoing repair work on oil field installations damaged in 2005. (4 STARS, Buy)JOHNSON & JOHNSON (JNJ) . This company is a leader in the pharmaceutical, medical device and consumer products industries. Although we think patent expirations and pricing pressures in the drug unit are a concern, we believe JNJ’s new product pipeline is promising and expect substantial contributions from new products into 2007. We also believe the planned purchase of Pfizer’s consumer products unit, subject to approvals, will provide substantial revenue and cost synergies. (5 STARS, Strong Buy)MICROSOFT CORP. (MSFT) . S&P believes this software giant is in the midst of the richest new product release schedule in its history, and these new offerings, along with acquisitions, should enable MSFT to gain market share in core and emerging categories. We further believe that MSFT’s notable cash and investments, amounting to $43 billion as of June 2006, with no debt, should allow the company to continue with stock repurchases and increase its dividend. (5 STARS, Strong Buy)TEXAS INSTRUMENTS, INC. (TXN) We believe the company’s technology leadership position in semiconductors for wireless communication, advanced television sets and analog functions, plus scale-based advantages in research & development and in manufacturing and marketing, should help it prosper over the long term. We view the shares as attractively valued compared to TXN’s historical average multiples. (5 STARS, Strong Buy)
