AT&TRichard Band of Profitable Investing of Potomac rings...


October 10, 1990|By Opinions on stocks offered by investment experts. Compiled by Steve Halpern for Knight Ridder.


Richard Band of Profitable Investing of Potomac rings bells for American Telephone & Telegraph (T, NYSE, low $30s).

"The stock has plunged 35 percent from its December 1989 high. Yet, the company's earnings were actually up for the first half of the year, despite a soft economy. The company also hiked its dividend by 10 percent. AT&T has transformed itself from an old-time utility into a bona fide growth company. This royal blue chip stock should double in price over the next three to five years."

Compression Labs

Carlton Lutts, The Cabot Market Letter, Salem, Mass., likes Compression Labs (CLIX, OTC, mid teens).

"Compression Labs is the world leader in the design of two-way video teleconferencing systems -- telephones that let you see who you're talking to . . . The technology is still too expensive for most individuals, but a growing number of corporations are finding great value in conducting conference calls with video as well as audio content . . . For the latest quarter, revenues grew 92 percent . . . We rate this stock a buy."


Paul Marsh, an analyst with Bateman Eichler, Hill Richards, says recession fears have battered Disney (DIS, NYSE, low $90s), down sharply from its 52-week high of $136.50.

"Anticipating a slowdown at its theme parks, we have shaved our fiscal 1990 earnings estimate to $6 a share, and reduced our fiscal 1991 estimate to $6.60. Nevertheless, we note that the stock has already moved down to a relatively low p/e multiple, which should cushion the downside risk. And, the company remains a cash flow machine.

GTE Corp.

United & Babson Investment Report rates GTE (GTE, NYSE, high $20s) a buy.

"GTE continues to suffer from negative publicity about its upcoming merger with Contel. However, we believe the combination is a positive as it will significantly add to both telephone and cellular operations. In the cellular area, both companies enjoy strong subscriber growth . . . We continue to expect overall sales to grow at a 10 percent annual rate . . . Combined with its 6.3 per cent yield, GTE provides attractive total returns."

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