K mart"The emotional selling sparked by Iraq's invasion of...


September 12, 1990|By Opinions on stocks offered by investment experts.Compiled by Steve Halpern for Knight Ridder

K mart

"The emotional selling sparked by Iraq's invasion of Kuwait has unduly depressed many high quality stocks, including K mart (KM, NYSE, mid $20s)," says The Outlook of New York.

"However, with consumers squeezed by slow income growth, higher oil prices, and a worrisome economic outlook, the firm's low-price, value-oriented image is a definite advantage in the highly competitive retailing industry. Meanwhile, the company has strong fundamentals ... the stock should provide superior long-term total returns."


"Elbit Computers (ELBTF, OTC, mid teens), an Israeli maker of sophisticated, combat-proven weapons delivery systems, is uniquely positioned to benefit from the current Mideast crisis," says The Callard Report on Warranted Values of Chicago.

"Geographically, 30 percent of sales have been to Israel, 45 percent to the U.S., and 25 percent to other nations. Even if the Iraqi situation is resolved, it will leave long-term pressure on increased military spending in the region ... Our target price for the stock is $23 a share."


"Heinz (HNZ, NYSE, low $30s) -- with Starkist tuna, Weight Watchers frozen foods and Ore Ida potatoes -- is an attractive investment," says the United & Babson Investment Report, noting its 26 consecutive years of earnings increases.

"Management is confident that new product introductions and expansion in European markets will further benefit the company in the 1990s. The firm's conservative approach to controlling costs and its advanced production techniques should continue to be a winning combination. Buy."

American Airlines

"Although there is a risk that higher oil prices could further hurt earnings of transportation firms over the short term, with the recent market decline, this is largely reflected in stock prices," notes Indicator Digest from Alexandria, Va.

"The hardest hit have been those using the most oil -- airlines. Consequently, that's where the bargains lie. American Airlines (AMR, NYSE, mid $40s), the largest domestic airline, which also has a large and growing presence in Europe and Asia, is among the best."

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