Paul Kangas: 25 Years

01/23/2004 12:00 am EST


Paul Kangas

Co-Anchor and Financial Commentator, Nightly Business Report

Congratulations to Paul Kangas! This week, his Nightly Business Report, celebrates its 25th anniversary. Here are excerpts from recent interviews with Jim Grant, Kevin Lane, and Eugene Peroni, highlighting what makes this such an exceptional program.

James Grant, editor Grant’s Interest Rate Forecast: "Annaly Mortgage (NLY NYSE) is in the business of speculating intelligently in mortgage securities. It buys them with leverage, that is to say, borrowed money. It does it in a way that has produced sterling results for a long time. I have faith in the management. But it is not to be confused with a Treasury bill. It has a very competitive yield these days. But you are taking some risk to get it and people should know that. I think that the gold bull market, now in its fourth year, will continue because we`ve had Alan Greenspan and Ben Bernanke and other public servants on our side. What they want to do is print more of the thing in your wallet, Paul. I like a silver company, a silver producer called Pan American Silver (PAAS NASDAQ). We`re not getting it at the lows here. But silver is a very, very volatile monetary asset. You know, gold is the statesman of the monetary metals and silver is kind of the crazy guy at the edge. And silver is, I think, is beginning its bull run."

Kevin Lane, chief market strategist, Redwood Technimentals Research: "We're really bullish on natural gas right now. We think that supplies are going to remain tight. We think that the outlook, you know, for the winter is going to be sort of a more severe one than we've seen of recent and that strong natural gas prices will be bullish for the sector. Chesapeake Energy (CHK NYSE) is the company we like there. We like it because of valuation and because of the quality of its reserves. They've recently made some good acquisitions of reserves at good prices and they have a good replenishment cycle on reserve. So we think that Chesapeake could trade up towards $19 here. Scientific Games (SGMS NASDAQ) is in a really fast-growing business, online lotteries. They run about two thirds of all lotteries in the US, the infrastructure for them. They signed a recent accord with the Italian government, a high-margin business. We continue to think that there's going to be strong growth there."

Eugene Peroni, Jr., managing director, Claymore Securities: "We just came out with our new top 10 picks for 2004. Apache (APA NYSE) is in the oil and gas explorer group. I think that this group continues to move higher, the oil and gas explorer group. Johnson Controls and Manufacturing (JCI NYSE), with a focus on automotive parts and supplies, continues to look very good here going forward. It has had a good move, but we think that the best short-term movers in this market will be the best long-term leaders. Progressive (PGR NYSE), in the property and casualty insurance area, looks attractive, as do other stocks in that same category.  Time Warner (TWX NYSE) looks very good. This is our pick for a significant turnaround in 2004. We think that the media stocks, the advertising stocks, stand to do very well in 2004 based on a recovering economy, an Olympic year, an election year. I think all that is going to play very positively. Wilson Greatbatch (GB NYSE) is a technology company that makes parts and batteries for implantable medical devices. In healthcare we have C.R. Bard (BCR NYSE). In technology, we have Nam Tai Electronics (NTE NYSE). Omnicom (OMC NYSE), one of larger advertising agencies. SPX Corp. (SPW NYSE) in manufacturing. And in medical devices, Zimmer Holdings (ZMH NYSE), which was the spin-off of Bristol-Myers several years ago."

Editors Note:  Paul Kangas will be the Master of Ceremonies at the Opening Ceremonies of the World Money Show in Orlando (Feb. 2-5), along with speakers such as John Dessauer, Steve Forbes, and via video, Sir John Templeton. To register for free, click on the link at the left. I hope to see you there.

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