L. Luria & SonThe Low Priced Stock Survey, Hammond, Ind...

STOCK WATCH

June 24, 1992|By Opinions on stocks offered by investment experts. Compiled by Steve Halpern for Knight Ridder.

L. Luria & Son

The Low Priced Stock Survey, Hammond, Ind., likes Luria (AMEX, LUR, $7.50), Florida's largest catalog showroom merchandiser with 54 showrooms, for value investors.

"The company's bottom line was crimped in the quarter ended February, due to increased markdowns, higher advertising expenses, and the closing of a store. However, earnings rebounded in the May quarter. Although the firm earned only a penny a share in the period, the profit compares favorably to a year-earlier loss. The stock has never recovered from the October 1987 market massacre, which cut 50 percent off its price. Indeed, the shares continue to trade below book."

Lennar Homes

Richard Schmidt, The Risk Report, Naples, Fla., likes Lennar Homes (NYSE, LEN, $20.88) for investors who can tolerate high-risk issues.

"It is the largest homebuilder and real estate developer in Florida. In addition, the company operates in Arizona and Texas, putting it in three of the fastest-growing residential states in the nation. Meanwhile, the company has been taking over large portfolios of properties from the Resolution Trust Corp. at prices well below their market value. The company's marketing is superb. While other builders are 'waiting,' Lennar is aggressively advertising and promoting its developments."

Allmon Trust

"My favorite 'income' investment for this year is Charles Allmon's Growth Stock Outlook Trust (NYSE, GSO, $9.88), a closed-end equity fund," says Brent Gentsch, The Dollar-Wise Investor, Dallas.

"The trust has a 75 percent internal investment in Treasury bills and notes, and should kick off a decent dividend in December. The remaining 25 percent is invested in growth-oriented common stocks.

"The equity-oriented portion of the portfolio is well-positioned to enhance the fund's total return. Best of all, Growth Stock Outlook Trust currently sells at an 8 percent discount to net asset value."

Aquarion

"Bonds are usually a favorite source of current income. However, as the economic rebound proceeds, interest rates will begin to rise again," says Sy Harding, Investor Forecasts, Palm Coast, Fla.

"Investors can find themselves collecting 8 percent in yield only to find that the value of the bond has fallen 8 percent during the same period. For current income we prefer utilities. Our favorite is Aquarion (NYSE, WTR, $22.38), a Connecticut water utility that yields 7.6 percent. Selling at a small premium to book value of $17.10 and at just 10 times estimated 1992 earnings, WTR offers the opportunity for excellent total returns."

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