Dow ChemicalFrank Capiello, The Hume MoneyLetter, likes...

STOCK WATCH

January 02, 1991|By Opinions on stocks offered by investment experts. Compiled by Steve Halpern for Knight Ridder.

Dow Chemical

Frank Capiello, The Hume MoneyLetter, likes Dow Chemical (DOW, NYSE around $46).

"Cyclical stocks, purchased at the low end of their industry cycle, usually yield big returns to patient investors . . . Dow Chemical offers an excellent long-term performance record. The company's five-year average annual rate of return is 21 percent . . . once the new cycle begins, earnings should move to the $10 per share area. Here is a chance to buy a top flight company at a substantial discount.

Du Pont

United & Babson Investment Report turns thumbs up on Du Pont (DD, NYSE around $37)

"Du Pont, the largest chemical company in the country, is trying to offset sliding earnings in its chemical operations . . . The company has been getting some help from its energy operations, where profits have zoomed due to higher oil prices. Meanwhile, the company continues to bolster its strong global operations to profit from its low cost and leading technology position . . . The issue offers good value for long-term investors."

Lawter International

Andrew Addison, The Addison Report, likes Lawter International (LAW, NYSE around $11).

"We have seen substantial technical improvement in the LTC specialty chemical group in recent trading. Lawter is a specialty chemical firm, producing printing inks, resins, and fluorescent coatings. The company is modernizing its equipment and adding capacity in an effort to reduce costs . . . This year should produce record profits of $1 a share . . . the stock is breaking out of a 3-year base on tremendous volume. Buy below 14 1/2 ."

Olin Corp.

Geraldine Weiss, Investment Quality Trends, likes Olin Corp. (OLN, NYSE around $36).

"Olin Corp. offers an enormous diversity of products in the chemical and metals industries. The firm supplies chemicals to the pulp and paper, photography, cleaner, semiconductor, auto, and agriculture markets. 1990 was discouraging, following record achievements in 1989. However, management has been focusing on building long-term value . . . Once the economy revitalizes, this stock should sizzle."

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