Lou Dobbs Boosts Tom's Top Ten
08/01/2003 12:00 am EST
It has long been refreshing to watch Lou Dobbs , who has always maintained a solid, long-term outlook on investing--a difficult practice while one is immersed in the fast-paced, short-term oriented, and often sensational world of the financial media. In his recently-launched newsletter, The Lou Dobbs Money Letter, he keeps this common sense by approach focusing on corporate and management quality.
Dobbs explains, "Each month in The Lou Dobbs Money Letter, I introduce you to the finest CEOs running the best companies I can find. These CEOs excel both in business savvy and ethics. Just the kind of people we like to hire to help us build our wealth." In this past month's issue, Dobbs highlights Tom McManus, chief investment strategist for Banc of America Securities . Says Dobbs, "McManus is a strategist who earned his reputation by being right. He joined Banc of America in 1998. From the outset, his market analysis was considered both thorough and insightful. It was that kind of analysis that set him apart from other strategists when he noted in early 2000 that the technology and telecommunications sectors were in serious trouble. The fact that he was dead on--when a lot of others were dead wrong--established Tom as someone who understood the realities of the market, and wasn’t shy about pointing them out. He's been cautious over the past couple of years, but he now sees some very positive signs for the market going forward.
"McManus oversees Banc of America's top ten stock list, which they call their ‘Fresh Money Focus List'. Since April 1999 when this list was introduced, it has annualized returns of 24.5%. That leaves the S&P 500 in the dust, with annualized returns of -5.4% in that same period. Tom McManus exp lains: 'These are companies from our Fresh Money Focus List, which we consider ten stocks to own now. We use it to highlight our market and sector views, and reflect stocks we consider to be good investments, not vehicles for short-term trading opportunities. From the group of stocks that our Banc of America analysts are recommending purchasing, we find these to be among the most attractive:
Alcon(ACL NYSE) develops, manufactures, and markets products to treat eye problems. They have pharmaceutical products, surgical equipment, devices, contact lens care, and other eye-care products.
Apache(APA NYSE) is an energy company. It finds, develops, and produces natural gas, crude oil, and natural gas liquids in various places around the world.
Boeing(BA NYSE) is the world’s largest aerospace company with a profitable airline business and a growing defense systems business. (See the June issue for an in-depth interview with Boeing CEO Phil Condit.)
Cardinal Health(CAH NYSE) provides a variety of products and services to healthcare providers and manufacturers. The company distributes pharmaceuticals and other medical products and services. It also helps with pharmacy management and automation and information services.
Carnival(CCL NYSE) is the cruise company you’ve probably heard of. It actually operates several different lines, from Carnival all the way up through luxury cruises. It also offers tours and sightseeing packages.
Clorox(CLX NYSE) produces cleaning products you’re probably familiar with, but also water filtration, food storage, and trash disposal products. There’s also a specialty division that includes charcoal, automotive care, cat litter, insecticides, dressings, and sauces, etc.
Comcast(CMCSA NASDAQ) is one of the big cable companies, offering cable, commerce, and content. With the acquisition of AT&T broadband, services now also include video, high-speed Internet, and phone. Comcast also owns QVC, one of the shopping channels.
Linens-’n-Things(LIN NYSE) is a national retailer of home textiles, housewares, and home accessories. It has stores in most states as well as in Canada.
Patterson-UTI Energy(PTEN NASDAQ) provides drilling services to oil and natural gas operators. The company is also involved in the development, exploration, acquisition, and production of oil and natural gas.
Taiwan Semiconductor(TSM NYSE) is one of the leading semiconductor chip manufacturers. The chips are used in microprocessors, graphics, wireless communications platforms, and programmable logic devices."