TECO Energy (TE, NYSE, around $32), is a top utility pick for conservative investors seeking growth. The stock, spurred by a favorable regulatory decision, has staged a breakout, says Dow Theory Forecast, Hammond, Ind.
"TECO, already a net seller of power, should record solid growth in power sales in coming years. Other utility operations should post gains as well, thanks to a fast-growing service area. The stock may pull back over the near term, but its long-range prospects are excellent."
College Bound (CLBD, OTC, around $5) is a leading provider of educational courses and guidance services. The firm operates 50 centers in 12 states, which help students prepare for standardized tests required to gain admission to college and graduate school.
"The firm appears to be able to add at least 25 new location annually for the foreseeable future. The firm appears headed toward revenues of $9.6 million in fiscal 1991, with earnings of 36 cents a share," says Richard Lilly, J. W. Charles Securities.
"Even after moving up 50 percent since its October 1990 low, we believe Harris Corp. (HRS, NYSE, around $20) still offers investors an attractive risk-to-reward ratio, says Michael Lauer, Kidder, Peabody.
"We look for earnings of $2.40 a share in fiscal 1991, down from the $3.30 a share earned in 1990. Earnings in fiscal 1992 should rebound to $3.25 per share. Trading at less than three-quarters of book value, 25 percent of revenues, and about six times next year's earnings, the issue continues to represent attractive value."
"Over the past five years, Home Shopping network (HSN, NYSE, around $4) has grown from a local broadcast TV shopping program into the dominant force in a growing industry. With $1 billion in sales, Home Shopping is the leader in the electronic retailing industry," says Conrad Kuhn, The Kon-Lin Letter, Rocky Point, N.Y.
"In fiscal 1990, sales rose 30 percent, while net income jumpe to a record 42 cents, up from a loss of 17 cents a share in the prior year. We recommend purchase of these shares."