Nutmeg Industries"Nutmeg (NYSE, NTM, $21) is the leading...

STOCK WATCH

April 29, 1992|By Opinions on stocks offered by investment experts.Compiled by Steve Halpern for Knight Ridder

Nutmeg Industries

"Nutmeg (NYSE, NTM, $21) is the leading maker of team-sponsored sports apparel," notes Louis Navellier, MPT Review, Incline Village, Nev.

"The company produces apparel with team names and logos under licenses from Major League Baseball, the National Basketball Association, the National Football League and the National Hockey League. Nutmeg also has licenses with most major colleges and universities."

Its "profit margins increased dramatically to 6.4 percent in its most recent quarter. This margin expansion combined with continuing strong sales growth should translate into explosive earnings growth."

Johnson & Johnson

"We are upgrading our rating on Johnson & Johnson (NYSE, JNJ, $94.25) to an attractive buy," says David Lothson, PaineWebber.

"The hospital supply group reported average earnings growth of 16 percent annually over the past five years. We see the group re-creating that growth rate over the coming five years. Johnson & Johnson has dropped about 15 percent from its highs; the stock now sells at a discount to its peers. And, the company has announced a major share repurchase program. We look for earnings of $5.05 a share this year, up from $4.39 a share in 1991. In 1993, we expect profits to reach $5.85 per share."

Am. Home Products

"American Home (NYSE, AHP, $76.75), a leading maker of pharmaceuticals and consumer health care products, reported record sales and earnings in 1991," says William Baxter, World Economic Service.

"Sales rose to over $7 billion, with earnings of $4.36 a share. With the introduction of new drugs such as Norplant (a new reversible 5-year contraceptive implant), American Home should report record results again in 1992. To insure a steady stream of new products, the firm is pursuing joint ventures and acquisitions. . . . This high quality issue, selling at 15 times estimated earnings, is attractive for conservative investors seeking capital gains and rising income."

Kellogg

"Kellogg (NYSE, K, $56.50) has fallen about 13 percent in price, following new all time highs," says Dow Theory Forecasts.

"Profits were slightly below expectations in the December quarter, which crimped the stock. Nevertheless, Kellogg re-established itself as the leader in the cereal market in 1991, as the company recouped some lost market share. Overseas business has been growing at a healthy rate. With cereal consumption abroad still below U.S. levels, this market should remain quite strong. At the $55 level, strong technical support exists and a return to the $60s is expected with some firming in the overall market."

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