Follow-ups: Updates on Past Picks

10/16/2002 12:00 am EST

Focus:

By its very nature, a Digest of investment opinion is only a starting place for investors to gain ideas for further research.  As such, it is impossible to provide continued follow-up advice to all the stocks mentioned in each issue. Nevertheless, we will periodically update advisor opinions on selected stocks that have previously been featured - with a particular focus on those issues that you have asked about.

Roger Conrad, editor of The Utility Forecaster notes, “Duke Energy (DUK NYSE) has slipped in price, making this an excellent time to pick up shares of this utility survivor on the cheap. Easily the strongest company in the sector, the company has made its moves to survive the downturn and is uniquely positioned for the power cycle recovery. And the stock is still dirt cheap, yielding a little less than 6%. The current swoon is a super buying opportunity."

Jim McCamant, editor of The Medical Technology Stock Letter, says, “The recently-established worldwide partnership between Amylin (AMLN NASDAQ) and Eli Lilly is one of the best deals in the biotech arena. Amylin’s management continues to deliver solid value for shareholders and are transforming the company into a fully integrated biopharmaceucial operation, complete with research, development, manufacturing, and sales capacity. We're raising our buy limit to $18 with an 18-24 month target of $30 per share.”

Cendant (CD NYSE) is down in price because it issued an earnings warning due to complexities in accounting for pre-payments on mortgages," says John Dessauer's Investor World.  "Nevertheless, the stock gets Value Line’s top rating for the coming 12 months, as well it should. Estimates of $1.26 a share (after a non-cash charge) for this year and $1.60 in 2003 are solid. Even if the market’s overall mood is not significantly better, these earnings should lift Cendant to $25. Buy.”

“While Amgen (AMGN NASDAQ) may trade lower in the short term, the longer term picture remains rosey,” says Michael Murphy in Health Investing.  “The FDA is still expected to approve the new Enbrel manufacturing plant. Buy under $48 with a stop loss at $39.”

Lockheed Martin (LMT NYSE), previously featured as a recommendation from Leo Fasciocco (Ticker Tape Digest), is also a buy from Stephen Leeb. In his Personal Finance, he says, “At about four times book value, Lockheed is by no means the cheapest of the defense companies. Nevertheless, its been consistently well managed and has room for much more growth. It is the crème de la crème of the sector. LMT is a great long term buy up to 67.”

Corinthian Colleges (COCO NASDAQ) was a previous buy from Jim Collins (OTC Insight).  The stock has also been featured by Marc Gerstein, director of investment research for Multexinvestor.com, who uses an intriguing four-part screening system to isolate strong stocks within strong industries. Gerstein says, “This unheralded stock is a perfect example of why stock screens are great as a means of calling interesting investment ideas to your attention. COCO has been holding up nicely over time (despite economic weakness), and the industry as a whole is a growth powerhouse. All in all, COCO is an attractive growth play.”

Kevin Kennedy (The Coolcat Explosive Small Cap Growth Stock Report) recommended buying Royal Gold (RGLD NASDAQ) on a pullback below $16.50.  He recently raised his buy limit on the stock to $17.50, and with the stock having pulled back below that level, Kennedy has now added the shares to his aggressive growth portfolio.

Finally, I would like to take this opportunity to remind readers that The Money Show Digest is an evolving idea. We are eager to get your personal feedback so that this online newsletter can be developed into the best possible product for your needs. We don't just want compliments (although those are always nice). Your constructive criticism, as well as your suggestions for new or different features are encouraged. Further, if you have questions about particular stocks or advisors, do not hesistate to ask. Please send your thoughts, ideas, and questions to DigestEditor@intershow.com.

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