Brunswick Corp."Brunswick (NYSE, BC, $14.62) appears to be...

STOCK WATCH

July 01, 1992|By Opinions on stocks offered by investment expert. Compiled by Steve Halpem for Knight Ridder.

Brunswick Corp.

"Brunswick (NYSE, BC, $14.62) appears to be coming out of a long slump, reporting first-quarter earnings of $0.14 a share, versus a loss of $0.10 a year earlier," says Babson Investment Report.

"Marine sales (up 24 percent) have increased for two periods in a row and should be ahead at least 10 percent in the current quarter. With a sharply reduced break-even point, any pickup in demand quickly flows to the bottom line . . . . Meanwhile, non-boating activities (bowling, fishing, golfing) continue to do well, cash flow is strong, and debt is being paid down. Earnings appear set to soar, with a per-share net of $2.25 possible in 1993. A buy for aggressive investors."

Carnival Cruise

Babson Investment Report also likes Carnival Cruise (NYSE, CCL, $28.25).

"Carnival's newest ships (Fantasy and Ecstasy) are performing very well, and six more are on order -- with deliveries to be made through 1995 -- for an increase in total capacity of 50 percent. The Crystal Palace hotel/casino (Bahamas) also should be sold by year end, eliminating a drag. Overall bookings remain quite strong, despite a still-difficult environment . . . Off 12 percent from its high, and with the potential for long-term growth of 15-20 percent (aided in part by a 50-50 joint venture with Club Med in Europe and possibly Asia), the stock has speculative appeal."

Club Med

Club Med (NYSE, CMI, $24.87) is another Babson Investment pick.

"Club Med has recently opened and/or is developing new resorts in Florida, the Bahamas, Republic of Vanuatu, and Australia. It is also finalizing plans for a joint venture with Carnival in Europe and the launch date for the Club Med 2, a 425-foot sailing vessel for the Asian markets . . . Bookings were strong in January, weaker in February and March, and may be flattish for the year. But with costs under good control, increasing capacity and improving world economies, results should soon be turning more positive, with net possibly approaching $2.50 in 1993."

Coleman

"Coleman (NYSE, CLN, $22.37) is a new issue but an old name, 85 percent owned by Ronald Perelman. Famous for its outing products (lanterns, tents, coolers, jugs, etc.), the company has undergone a major restructuring in recent years, many older plants have been closed, others upgraded, and underperforming lines disposed of, while the new product, advertising, and marketing budgets have been increased sharply," points out Babson Investment Report.

"In the first quarter, Coleman earned $0.32 a share, vs. $0.19 a year ago . . . Per-share net this year should reach $0.95, and the early projection for 1993 is $1.15-$1.20."

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