Medical Technology"Medical Technology (MSYS, OTC, around...

STOCK WATCH p

September 04, 1991|By Opinions on stocks offered by investment experts. Compiled by Steve Halpern for Knight Ridder.

Medical Technology

"Medical Technology (MSYS, OTC, around $0.75) makes and sells disposable medication punch cards; these cards supply patients with 30 days' worth of medication," explains the Oberweis Report, by Hamilton Investments of Aurora, Ill.

"The firm also makes the equipment that fills these cards. The stock is recommended for high-risk investors.

"We emphasize that this speculative issue is only suitable for those willing to accept an extreme amount of risk."

Fla. Progress

"America's sunshine state has a lot more to glow about than good weather; it is also the home of Florida Progress, a $5 billion holding company (FPC, NYSE, around $41), says Geraldine Weiss, Investment Quality Trends of La Jolla, Calif.

"The utility generated about 33,000 new customers last year. It has ranked in the top 10 among the nation's 100 largest utilities in unit efficiency. Based on historical yield levels, the stock -- currently yielding 6.5 percent -- could more than double in price hTC before becoming overvalued."

Rag Shops

"We are initiating coverage of Rag Shops (RAGS, OTC, around $9) with a buy rating," says Jyoti Aggarwala of Ladenburg, Thalmann & Co.

"The company operates a chain of 44 fabric and craft stores, primarily in Florida and New Jersey. Over the past five years, revenues have grown at a compound annual rate of 37 percent while net income has risen 71 percent. We look for 1991 earnings to rise 38 percent. Trading at only 12 times estimated earnings, the stock appears undervalued. We recommend purchase by speculative investors."

Teco Energy

"In a number of respects, 1990 was a difficult year for Teco Energy (TE, NYSE, around $35)," says Argus Weekly Staff Report of New York.

"The service area had virtually no winter weather, which cut into revenues at Tampa Electric. The utility also experienced prolonged outages at two of its major generating units.

"The stock currently provides a yield of 4.9 percent. Teco's finances are gilt-edged. We think these shares are exceptionally well-suited for the investor who wants above-average dividends. We rate the stock a buy."

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