Clearly CanadianIndividual Investor Special Situations...

STOCK WATCH

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

Clearly Canadian

Individual Investor Special Situations recommends Clearly Canadian (OTC, CLCDF, $14).

Clearly Canadian is a premium brand within the bottled-water industry. The firm distinguishes itself from the competition with proprietary flavors and award-winning packaging. For no apparent reason, this stock has fallen sharply, offering an unusual opportunity to buy into a great stock at a cheap price. Earnings in the second quarter should double from last year, and the rest of this year looks equally strong. The case for buying this stock at current depressed levels is compelling. We reaffirm our strong buy rating."

Cott Corp

"Cott (NYSE, COTTF, $11.75) is Canada's largest private-label bottler. The firm is an indirect play on Wal-Mart," says Arthur Darack, The Hume MoneyLetter.

"Cott supplies Wal-Mart with 'Sam's' cola, which is produced at U.S. plants. Like everything else about Wal-Mart, this story is the stuff of dreams. The cola that the company makes for Wal-Mart sells for about $1.18 per six-pack, or about 20 percent less than name-brand colas. People who have tasted Sam's cola claim it's as good as Coke. Indeed, Wal-Mart thinks it can get a big slice of the cola market via this product. Sales in the latest six-month period rose 105 percent from the year-earlier period."

Windmere

John W. Schott, The Schott Letter, recommends Windmere (NYSE, WND, $5.625), a manufacturer and distributor of personal care products.

"Windmere makes goods for sale under its own label, as well as for Waring, Rival, Sunbeam, Bausch & Lomb, Krupp and Proctor-Silex. Windmere recently constructed a major plant in Guandong, China, where 90 percent of its products are now made. Windmere's earnings peaked at $2.04 per share in 1988, and the firm reported losses in 1990 and 1991. The last three quarters, however, have been in the black, and the company is very comfortable with earnings per share estimates of $0.30 for 1992."

Nutmeg

"Nutmeg (NYSE, NTM, $9.875) designs, manufactures and markets spectator sportswear, such as sweat shirts and T-shirts," notes America's Fastest Growing Companies.

"The company's results were very strong in the latest quarter, with earnings rising from one cent to seven cents a share on a 52 percent jump in revenues, to $26 million. International sales have soared 400 percent from last year, and the company continues to see a lot of opportunities abroad. The company remains very optimistic about this year, and analysts look for earnings of 60 cents a share, up from 42 cents last year. We award the stock our top buy rating."

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