Salick Health Care"Salick Health Care (SHCI, OTC, around...


October 30, 1991|By Opinions on stocks by investment experts. Compilted by Steve Halpern for Knight Ridder.

Salick Health Care

"Salick Health Care (SHCI, OTC, around $11) is a pioneer in a newly developing segment of the health-care market -- comprehensive, outpatient cancer diagnostic and treatment programs," says The Low Priced Stock Survey, Hammond, Ind.

"The firm currently operates eight outpatient cancer centers . . . . Overall, the company's goal is to become the nation's premier provider of high-quality outpatient, disease-specific services . . . Over the last five years, sales have grown at an annually compounded rate of 40 percent."

Illinois Power

"Illinois Power (IPC, NYSE, $22) is our favorite recovery play for more conservative investors," says Roger Conrad, Utility Forecaster.

" . . . the stock looks set for annual total returns of 20 percent to 25 percent well into the mid-1990s. The utility hit the skids in 1989 when Illinois regulators declared that only 27.8 percent of the newly built Clinton nuclear power plant was 'used and useful.' . . . However, on appeal, Illinois courts ruled that the plant was entirely used and ordered regulators to reconsider the case."

Gulf State Utilities

Gulf State Utilities (GSU, NYSE, around $8) is turnaround pick by Roger Conrad, Utility Forecaster.

"Problems started in 1986 when Louisiana and Texas regulators refused to let it recoup $1.6 billion in nuclear plant construction costs. But since then, cost-cutting and smaller rate increases have boosted cash flow from $24 million to $350 million . . . Gulf State faces the possibility of bankruptcy if it loses two crucial lawsuits. But if the company avoids these pitfalls, a double or triple in the stock price by 1993 is almost a certainty."

Sun Trust

Katherine Hensel, Shearson Lehman Brothers, likes Sun Trust (STI, NYSE, around $34).

"Sun Trust reported earnings per share of 73 cents vs. 72 cents a year ago. As expected, credit deterioration slowed considerably. Non-performing assets were up very slightly, while net interest margins widened considerably. We believe that investors will view these trends as good news. These solid results cause us to reaffirm our buy rating. We find these shares attractive for investors with a relatively low tolerance for risk."

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