Florida ProgressAbove-average expansion within the service...

STOCK WATCH

July 31, 1991|By Opinions on stocks offered by investments experts. Compiled by Steve Halpern for Knight Ridder.

Florida Progress

Above-average expansion within the service territory continues to be the driving force behind Florida Progress (FPC, NYSE, around $40)," says Thomas Serzan, Gruntal & Co.

Since 1985, customer growth has averaged about 4 percent annually, nearly twice the national average. In addition, the utility's customer base is comprised primarily of residential and commercial sales, which are less susceptible to fluctuations in business activity than industrial customer sales . . . The stock currently yields 7 percent."

Education Alternatives

"One company set to benefit from the grass-roots movement to affect change in education is Education Alternatives (ROTC, NYSE, around $7)," says Carol Frank, John G. Kinnard & Co.

"The company currently operates two private for-profit schools (in Minneapolis and Phoenix) for children aged 3-12 . . . The company's current goal is to employ its expertise to secure management and consulting contracts for other schools, both public and private . . . We believe the company will ultimately be successful . . . ."

Federal Express

"We believe the worst is over for Federal Express (FDX, NYSE, around $42), says Shearson Lehman Brothers.

"Management's focus on cost control and profitability should enable the air freight carrier to be profitable in the May 1992 fiscal year.

"In addition, profit growth should continue through the next two fiscal years. The stock has a high risk rating, due to the company's dependence on an economic recovery for its continued growth. Our one-year price target is $50 per share."

Union Camp

"Union Camp (UCC, NYSE, around $45) is well-positioned for the next cyclical upturn in the paper industry," says Shearson Lehman Brothers.

"The completion of a 4-year, $2.3 billion capital program this year will expand the firm's paper capacity and, we believe, double the company's earnings power.

"Meanwhile, the company enjoys a solid financial position and high quality assets.

"We believe the shares could trade in the upper $50s within the next 12 months."

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