|
|
Enron Mail |
SIVY ON STOCKS from CNNmoney.com
November 23, 2001 ******************[ A D V E R T I S E M E N T ]**************** QUICK! If you won $25,000 CASH what would be on your "Best Of" list? Keep thinking because here's a chance to try to win the $25,000 Grand Prize. BONUS: See what else has been selected "Best Of" at money.com and try an issue of MONEY Magazine FREE! Click Here: http://www.money.com/bestof **************************************************************** Deep value While you're waiting for the economy to rebound, take a look at some of the incredibly cheap bargains that are still available. By Michael Sivy Investors are hoping the economic recovery will begin by the second quarter of 2002. But signals are still mixed -- and economists are waiting to see how strong retail sales are during the all-important holiday season. I continue to be optimistic about next year's economy. And the overall market is behaving as though the upturn isn't far off. But we had a false start in May and June, and there's still no way of being sure that a sustainable recovery is about to take hold. The good news amid all this uncertainty is that many stocks have lagged the recent market pickup -- and they're still selling at extraordinarily low prices. Sanford C. Bernstein's Strategic Value fund includes a lot of these bargain-priced issues, which Bernstein calls "deep-value stocks." Here's a quick look at five stocks that Bernstein has favored this year. American Electric Power One of the nation's lowest-cost electricity producers, AEP [AEP] serves nearly 5 million customers in the middle of the country, from Ohio to Louisiana. The company is considering a plan to divide regulated and non-regulated businesses, which could boost the total value of the stock. Earnings growth is projected at 7 percent annually over the next five years, and the shares yield 5.7 percent, high even for a utility. At $42.40, the stock trades at just over 11 times next year's estimated earnings. Dow Chemical Now the largest chemical company by revenues (ahead of DuPont), Dow's [DOW] basic chemical businesses are in the midst of a cyclical earnings decline, compounded by dilution following February's acquisition of Union Carbide. Profits should start rebounding in the second half of next year, helped by an improving economy and post-merger cost cutting. Earnings could grow 9 percent annually over the next five years, and the yield is 3.5 percent. At $38, the stock trades at 27 times next year's earnings. Occidental Petroleum One of the most profitable oil companies on a per-barrel basis, Oxy's [OXY] earnings have been held back by its chemical operations. Results will be depressed next year, but should rebound in 2003. The stock is a likely takeover candidate if the industry consolidates. Earnings could grow 9 percent annually over the next five years, and the yield is 4 percent. At $24.90, the stock trades at 12.5 times next year's earnings. Sears Still one of the largest U.S. retailers, Sears [S] is No.1 in appliances. The company has emphasized energy-efficient models, which are popular because of consumers' concerns about high oil and gas prices. Earnings could grow 9 percent annually over the next five years, and the yield is 2 percent. At $45.10, the stock trades at less than 11 times next year's earnings. Washington Mutual The nation's largest thrift with offices in 42 states, Washington Mutual [WM] has traditionally been strong in adjustable-rate mortgages. Those ARMs have recently lost share to fixed-rate loans because long-term interest rates have been so low. As a result, the share price is now undervalued relative to other financial companies. Earnings could grow percent 13 annually over the next five years, and the yield is 2.9 percent. At $33.10, the stock trades at nine times next year's earnings. ### Read all of Michael's columns at: http://money.cnn.com/markets/sivy/ To subscribe or unsubscribe to Sivy on Stocks, go to: http://money.cnn.com/email/ -------------------------------------------------- DEVELOP CONFIDENCE TO MAKE MONEY IN ANY MARKET WITH THE MONEY'S COACHING FOR INVESTORS program! Tap the expertise of MONEY and gain control over your finances with the help of a one-on-one coach. Call now to speak with a coaching consultant and learn how you can develop a personal investment program for yourself 800-748-4056 x5707. Visit our website for more information http://money.cnn.com/services/coach/ ----------------------------------------------------------- CONTACT THE BIGGEST COMPANIES IN THE WORLD! Over 5,000 contact names in the OFFICIAL FORTUNE Databases. DOWNLOAD THEM NOW! http://www.fortune.com/sitelets/datastore/index.html?mn01 ----------------------------------------------------------- * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Special Internet Offer!!! Sign up for a FREE trial issue of MONEY MAGAZINE at http://www.money.com/subscribe2 Or if you prefer call our toll-free number 1-800-544-4594 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * We may, from time to time, contact you with offers for Time Inc. products and services which we think may be of interest to you. If you would prefer us not to contact you in this manner, AND YOU DID NOT INDICATE THIS PREFERENCE AT THE TIME YOU SIGNED UP for the Sivy on Stocks online newsletter or any other Time Inc. online newsletters, please let us know by sending us an e-mail at <no_solicit@money.com<. Additionally, from time to time we may provide your e-mail address to carefully chosen companies whose offers we think may be of interest to you. If you would prefer us not use your e-mail address in this manner, AND YOU DID NOT INDICATE THIS PREFERENCE AT THE TIME YOU SIGNED UP for the Sivy on Stocks online newsletter or any other Time Inc. online newsletter, please let us know by e-mailing us at <no_transfer@money.com<.
|