"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 (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."