Conservative Picks with Growth Potential

10/13/2006 12:00 am EST

Focus:

Louis Navellier

Editor, Blue Chip Growth and Emerging Growth

In his recent newsletter, guru Louis Navellier presents two diverse recommendations: A real estate investment trust with good income and growth potential and a technology stock seeking wholesale growth, internally, as well as with external acquisitions…

Boston Properties, Inc. (BXP NYSE) is led by chairman and media czar Mort Zuckerman (of U.S. News & World Report and New York Daily News). The company builds and owns commercial real estate. Boston Properties’ portfolio includes around 120 office buildings, plus hotel, retail, and industrial properties totaling some 41 million square feet. The company’s holdings are located mostly in Boston, Manhattan, San Francisco, and Washington, D.C. BXP’s major tenants include the U.S. government, Citibank, and Ernst & Young. Boston Properties is a real estate investment trust (REIT), so dividends are taxed at up to a 35% federal tax rate, versus the 15% rate for most companies on our Buy List. The stock is a good buy for conservative investors.

Intuit, Inc. (INTU NASDAQ) is one of those companies that is under the spotlight for backdating options and might have to eventually deal with the Justice Department and the Securities & Exchange Commission. However, that doesn’t deter me because there are a lot of positives for Intuit. The company is a leading provider of personal finance (Quicken), small business accounting (QuickBooks), and consumer tax preparation (TurboTax) software for consumers, accountants, and small businesses. Other software offerings include industry-specific accounting and management applications for construction, real estate, retail, and wholesale distribution organizations.

“Intuit also provides payroll services, financial supplies, and software for professional tax preparation. The company is based in Mountain View, California, and is a big employer in my hometown of Reno, Nevada. In fact, one of the company’s executives lives in my neighborhood. Google is teaming up with Intuit to incorporate the upcoming version of QuickBooks with access to many of Google’s online features. The Google/Intuit alliance is a logical one, since small businesses naturally utilize Google. These small businesses can generate leads through Google AdWords and can sell items through Google Base. Additionally, with the Google/Intuit alliance, small businesses can get listed on Google Maps.

“Intuit recently acquired StepUp Commerce, Inc. for $60 million in cash. StepUp provides services that help retailers use the Internet to display their in-store products. Intuit will use StepUp’s technology in its QuickBooks listing service, which allows local businesses to make product information and images available online. Intuit continuously upgrades its software by making key alliances with Google and other companies. Technology stocks are emerging as some of the new market leaders. The stock is a good buy in the Conservative category.”

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