Sound Advice"Sound Advice (SUND, OTC, around $8) operates...

STOCK WATCH p

August 21, 1991|By Opinions on stocks offered by investment experts. Compiled by Steve Halpern for Knight Ridder.

Sound Advice

"Sound Advice (SUND, OTC, around $8) operates 18 consumer electronics stores in Florida, utilizing a distinctive upscale merchandising approach," explains John Weiss of Montgomery Securities.

"Operating margins are the highest of all publicly owned consumer electronics retailers.

We look for fiscal 1991 earnings of 85 cents per share, up from 70 cents last year. We expect an 18 percent advance in earnings per share in fiscal 1992. We rate the stock an aggressive buy."

BellSouth

"BellSouth (BLS, NYSE, around $46) suffered its second straight disappointing quarter, with earnings dropping 17 percent to 76 cents per share," says Roger Conrad, Personal Finance of Alexandria, Va.

"The main reasons for the drop in profits were expansion expenses and the costs of complying with regulatory changes.

With the stock now 17 percent below its 52-week high, and with a yield of nearly 6 percent, it is practically begging to be bought. The stock appears to be a real bargain."

Outback Steakhouse

"We have initiated coverage of Tampa-based Outback Steakhouse (OSSI, OTC, around $27), which became public in June at $15 per share," says R. Jerry Falkner of Southeast Research Partners.

"The company operates a chain of 34 full-service restaurants. Sales and earnings have been in a strong uptrend since the first Outback restaurant opened in 1988. We look for earnings to reach the 95- to 98-cent level. We recommend waiting for a market-related pullback to the $20 to $23 level before purchasing these shares."

Carnival Cruise

"Carnival (CCL, AMEX, $20) continues to hold our top buy rating; the stock remains one of our favorite issues in the lodging group," says Caroline Levy of Shearson Lehman Hutton.

"Our excitement revolves around the accelerating earnings momentum expected over the next four quarters. The stock is down 20 percent from its yearly high. Risk appears limited to the $19 level. Meanwhile, we see 40 to 50 percent upside appreciation potential. The stock is recommended for high risk-oriented investors."

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