St. Joe PaperPaper manufacturer St. Joe (NYSE, SJP...

STOCK WATCH 3/8 3/8

March 04, 1992|By Opinions on stocks offered by investment experts. Compiled by Steve Halpern for Knight Ridder.

St. Joe Paper

Paper manufacturer St. Joe (NYSE, SJP, $38.25) has assets that suggest it is one of the most undervalued situations on the New York stock exchange, says Francis Curzio, F.X.C. Investors.

"With 1.1 million acres of land in Florida, St. Joe is the state's largest private landholder. In part, this land was purchased in the 1930s, and is recorded on the company's books at prices paid during the Depression. St. Joe Paper also owns shares of other companies, including 500,480 shares of General Motors, 782,100 shares of Du Pont, and a 53 percent stake in Florida East Coast Industries. . . . We recommend purchase by speculative investors."

Office Depot

"Office Depot (NYSE, ODP, $53.75) has risen some 70 percent . . . over the last six months," notes The Ri$k Report.

"The firm continues to expand and will open an additional 100 locations over the next year. The company's recent expansion into Canada gives them added opportunities for market expansion. The firm has expanded its stores, its product lines, and its services to meet the needs of cost-conscious business customers. With its strong focus on value-oriented small businesses, we believe Office Depot will be a strong beneficiary of an expected economic recovery. We are upgrading our recommendation on the stock from a hold to an aggressive buy."

Sensormatic

"We are initiating coverage of Sensormatic (NYSE, SRM, $26.875) with a buy rating," says Curt Rohrman, First Boston.

"The firm -- based in Deerfield Beach, Fla. -- is the world's leading maker and distributor of loss prevention systems, with about 75 percent of the U.S. market and more than 60 percent of the worldwide market. And, the company's industry position is growing stronger...Sensormatic is establishing its franchise in the non-retail sector of this industry. Industrial asset protection is an emerging opportunity that appears virtually untapped. Overall, we look for Sensormatic's earnings in fiscal 1992 to increase 22 percent to $1.10 per share."

College Bound

"College Bound (NASDAQ, CLBD, $19.375) provides a good play on the increasing involvement of the private sector in education," says Ripples in the Wave.

"This holding company provides supplementary education to high school students through 83 offices in the United States. The five-year earnings growth rate is 168 percent; the price-to-earnings multiple for the stock is 35. For the past four quarters, sales have better than doubled over year-earlier periods. Meanwhile, earnings have been exploding; profits tripled in the November quarter. . . . Technically, a move above 23 could send this issue up towards 30. Buy."

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