Franklin ElectronicTomorrow's Stocks of Scottsdale, Ariz...

STOCK WATCH

March 11, 1992|By Opinions on stocks offered by investment experts. Compiled by Steve Halpern for Knight Ridder.

Franklin Electronic

Tomorrow's Stocks of Scottsdale, Ariz. recommends Franklin (NASDAQ, FPUB, $21.50) a developer of electronic products and software.

"It recently introduced a shirt-pocket electronic baseball encyclopedia, which retails for $129.95. Earnings for the fiscal year ending this month are expected to be 5 cents a share, compared with last year's 89-cent-a-share loss. For the coming fiscal year, we look for a jump to $1 a share. The exciting potential of this new baseball product, along with growing demand for its other shirt-pocket products, suggests that the stock could reach the $17 area over the next year, with a long-term target of $35. Buy."

Huffy

"Huffy (NYSE, HUF, $21.875) has just reported its third consecutive year of record sales and earnings," notes Edward Cimilluca, Shearson Lehman Brothers.

"Bicycle sales remain robust, aided primarily by continuing strength in the all-terrain Huffy Mountain bike. We believe the new Huffy Mountain Extension, a crossover bike with narrower tires, will prove successful in penetrating the adult market. Meanwhile, the firm has introduced a new bike for 6- to 12-year-olds. The bike is called Mud Slinger for boys and Double Take for girls. We believe the fall rollout of these bikes will prove very successful."

Russell

"Russell (NYSE, RML, $36.25), a leading producer of athletic uniforms, is a pure play in the growing market for sportswear," says Franklin's Insight, Boston.

"Russell takes on all aspects of production from spinning yarn to marketing. In addition, the firm has developed a new fleece fabric with a smooth texture for easier printing. The firm also has developed Intera, a fabric used in nylon team wear. . . . Because of its state-of-the-art equipment, many retailers are turning to Russell. Due to the firm's competitive edge, and favorable demographic and consumer trends toward active wear, we look for a strong rebound."

Arctic Cat

"Arctic Cat (NASDAQ, ACAT, $12,625) has a strong and growing position in the snowmobile market," notes L. Craig Carver, John G. Kinnard & Co.

"Although snowmobiles were originally developed as utility vehicles, most sales are for sports and recreational use. . . . The firm's products have a long-standing reputation for quality, performance, and style. In 1993, the company will enter the market for watercraft, under the name Tiger Shark. Meanwhile, the company has an exceptional balance sheet, with virtually no debt and nearly $5 a share in cash. . . . We believe the stock is underpriced and poised for a significant move to the upside."

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