Claire's StoresClaire's Stores (CLE, NYSE, around $15...


February 27, 1991|By Steve Halpen for Knight Ridder

Claire's Stores

Claire's Stores (CLE, NYSE, around $15) operates a national chain of more than 1,000 stores, selling fashion accessories such as costume jewelry and gift items. Under the leadership of a president who joined the company from The Limited in 1986, sales per store have grown at an extraordinary rate in each of the past two years," says The Van Kaspar Review of San Francisco.

The company's strong sales momentum slowed in late 1990. We believe . . . current depressed multiple offers an excellent buy opportunity."

FPL Group

`Last year, FPL Group (FPL, NYSE, around $30) decided to concentrate on its core utility business," says The Wayne Hummer Market Letter of Chicago. The firm has sold its cable TV and real estate operations. In addition, an investment banker has been retained to find a buyer for the company's Colonial Penn Insurance subsidiary.

"For the most part, FPL's non-utility businesses have been disappointing. Newly focused FPL has a lot going for it. Traditional income and utility investors should add this to their portfolios."


"The stunning success of the Patriot air defense system in shooting down Iraqi Scud missiles aimed at Israel and Saudi Arabia has given a big boost to Raytheon (RTN, NYSE, around $74). We expect that the favorable publicity surrounding the weapons system should result in additional orders," says

Standard & Poor's The Outlook of New York.

The coverage has already led to increased production rates of the Patriot . . . Even though the stock has made a substantial move, we believe it will continue to rise . . ."


"Grossman's (GROS, OTC, around $2) is a retailer of lumber and building materials. We believe 1990 will prove to be the trough year for the company's earnings," says H. Lloyd Kanev of Smith Barney.

The company recently has completed a merchandise and store-remodeling program. Signs of revitalization should be evident in 1991. Our 1991 earnings estimate is 30 cents a share. We expect to see further recovery in 1992. . . . The intrinsic value of the company is significantly higher than its current share price."

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