Personal Finance, Alexandria, Va., likes Waste Management (WMX, NYSE, low $30s), the nation's largest player in the solid and hazardous waste disposal industry.
"Despite its prospects for solid growth, the company's stock has fallen sharply. Its price-to-earnings ratio is now close to a 10-year low. With the market now panic-stricken, we can't promise the stock won't go lower still. However, we can say that 12 months from now, investors will be scratching their heads, wondering how this stock ever got as low as it is now."
Richard Evans, Dow Theory Forecasts, Hammond, Ind., notes that American Cyanamid (ACY, NYSE, mid $40s) is planning to repurchase 10 million to 12 million of its shares.
"This buyback should provide per share results with a significant boost. Having sold its consumer unit, the company can now focus on its core operations in medical and agricultural products. New products and aggressive marketing should fuel solid growth. The stock, currently trading near a two-year low, offers promising growth potential."
"The value at Penn Central (PC, NYSE, around $19) is compelling," says Donald Zwyer, Kidder, Peabody.
"The firm's core business involves wire and cable as well as heavy industrial equipment. The company recently tendered 11 million common shares, continuing an aggressive buyback program that has retired 27 percent of the outstanding stock . . . Meanwhile, the firm still has an $800 million acquisition war chest . . . The stock is trading well below its book value of $30 per share -- its greatest discount in many years. Buy."
Stephen Leeb, Indicator Digest, Alexandria, Va., says problems at Equimark (EQK, NYSE, around $3) have been blown out of proportion.
"With more than $3.6 billion in assets, its is one of the largest banks in Pennsylvania. Due to a boost in loss reserves, the bank will probably lose about $3.80 a share in 1990. With the worst behind it, the bank should begin to recover in short order . . . We're not the only ones who are optimistic . . . Insiders have been accumulating shares of Equimark for months . . . buy aggressively up to 4 1/2 ."