Education Alternatives"While presidential candidates...

STOCK WATCH

August 12, 1992|By Opinions on stocks offered by investment experts. Compiled by Steve Halpern for Knight Ridder

Education Alternatives

"While presidential candidates lament the standard of public education in our country, there is a company that's making a difference," writes Carlton Lutts, the Cabot Market Letter. "Education Alternatives (OTC, EAIN, $11) is a small firm that JTC manages a limited number of schools in Florida (Dade County) and Utah [and recently was hired to run nine public schools in Baltimore]. Using the Tesseract method, which stresses results while adjusting to each child's individual way of learning, the system provides a better education at the same cost. Granted, it's hard to imagine a small company such as this overhauling the nation's school system. But the stock's relative performance suggests that something here is working. Look into it, and buy a little."

Bally Manufacturing

"Bally Manufacturing (NYSE, BLY, $5.75) is the world's largest operator of fitness centers. Everything now appears to be in place for this company," says John Dessauer of Dessauer's Journal. "Problems with the IRS have been resolved, and the firm's Reno casino is under a sale agreement. Meanwhile, a significant amount of the company's debt has been repaid, and the firm no longer appears to be in financial danger. Best of all, its fitness and pinball operations are doing well. The stock should rise to the $8 to $10 per share level. Longer term, the stock could go much higher. We continue to recommend purchase of these shares."

Biodynamics Int'l

"Biodynamics International (OTC, BDYN, $4.375) is playing an important role in the introduction of two medical innovations," says Richard Lilly, J. W. Charles Securities. "First, the company is substituting aseptically processed transplant tissue from cadavers for use in the traditional method of secondary operations that entail pain, blood loss, and increased risk of infection.

"Second, the firm is helping develop a revolutionary autotransfusion system that reclaims a patient's blood, reducing the need for donor blood. The company reported its first profit in 1991, earning two cents per share. We look for earnings of nine cents in 1992, with 16 cents expected in 1993."

First Team Sports

"First Team (OTC, FTSP, $9.50) is a leading maker of in-line roller skates," writes Individual Investor Special Situations Report in New York. "The company recently announced record first-quarter earnings. Earnings per share rose 42 percent from year-earlier levels. Sales for the quarter rose an impressive 63 percent.

"The combination of an expanded product line, an increased distribution network, and celebrity endorsements (Wayne Gretsky, Katerina Witt and Brett Hull) portend a year of solid growth.

"Despite its strong prospects, the stock has been moving lower. We view the stock as undervalued and reiterate our buy recommendation."

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