MattelGary Jacobson, Kidder, Peabody, likes Mattel (MAT...

STOCK WATCH

December 05, 1990|By Opinions on stocks offered by investment experts. Compiled by Steve Halpen for Knight Ridder.

Mattel

Gary Jacobson, Kidder, Peabody, likes Mattel (MAT, NYSE around $20).

"Unlike most of the sector, industry leader Mattel has not been disappointing. Its success, we believe, is a result of its diversity. The current industry environment -- with its focus on basic toy lines and promotional products -- is creating opportunities for large, diversified companies such as Mattel . . . The company continues to generate a lot of cash. Our full-year estimate remains $2.40 a share. We continue to rate the stock a buy."

Tyco Toys

BI Research, Redding, Conn., favors Tyco Toys (TTOY, OTC around $10).

"We have lowered our earnings estimates for the company due to the acquisitions of toy makers Nasta and Playtime. These new operations . . . should be profitable next year. Meanwhile, the decline in Tyco Toys is ludicrous. We think it is creating a great buying opportunity. We look for overall corporate earnings of $1.70 a share this year and $2.40 a share next year. At current prices, the stock trades at an irresistible P/E of only 5. We rate the stock a buy."

Toys 'R' Us

Joseph Buckley, Bear Stearns, recommends Toys 'R' Us (TOY, NYSE around $23).

"Concerns about the economy, and consumers' unwillingness to spend money this Christmas have depressed the stock of this uniquely positioned and rapidly-growing retailer . . . Our continuing buy recommendation for the stock, however, looks far beyond what may or may not occur at Christmas . . . We see the company growing at a 20-25 percent rate over the long term . . . We recommend purchase of the stock."

Shorewood

Timothy Burns, Prescott, Ball & Turben likes Shorewood Packaging (SHOR, OTC around $7).

"Shorewood remains a leading player in the music packaging industry.

"The firm is the technological leader in producing the packages that hold CDs and albums. In response to an increasing movement against non-recyclable packing, the company has introduced the Laser pack, a unique combination of paper and plastic that uses reusable components . . . We rate the stock a buy."

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