Carlson: Win with Dow Loser
01/09/2004 12:00 am EST
Chuck Carlson is best known as the leading authority on dividend reinvestment plans. His 2003 top pick, Health Management, gained 30% this year. He has just released a new book, Winning With The Dow's Losers, and he applies the book's principles 2004 pick, Merck.
"I think 2004 will be a good year for Merck (MRK NYSE). This Dow component is coming off a dreadful 2003. Wall Street is concerned about the lack of new products in the pipeline and increased generic competition. However, my research shows that Dow stocks that do poorly in one year tend to do very well the next. Merck should benefit from investors' appetite for yield. Also, expectations are so low for the stock that any good news will send these shares higher. Finally, a return to choppy markets in 2004 will work to the advantage of growth-and-income stocks like Merck. I would be a buyer in the low $40s."
Charles Carlson will be participating in Investing for Growth & Income at The World Money Show in Orlando, Florida, February 3, 2004. Tickets are $89.00 through January 22, $109.00 afterwards. Click here for more information or to purchase tickets.