A star stock picker of 1995 tells what he likes for '96

The Ticker

January 26, 1996|By JULIUS WESTHEIMER

IF A MAN tells you what he can do for you tomorrow, ask what he did yesterday," runs an old slogan.

In that regard, here are 1996 stock selections by John Dessauer, last year's No. 1 stock-picking panelist on "Wall Street Week With Louis Rukeyser." Mr. Dessauer's stocks were up 63 percent in 1995.

For this year: Bally Entertainment, Countrywide Credit, C. P. Pokphand Ltd., Ericsson Tel. "B" ADRs, Fletcher Challenge ADS, Hallwood, Rhone-Poulenc, SEI Corp., Service Merchandise and ShowBiz Pizza Time. Mr. Dessauer picks a year-end Dow Jones 6,000.

HOW IT'S DONE: Speaking of the Dow average, here's how the popular indicator is figured:

"The Dow Jones industrial average is 'price-weighted,' figured by dividing the price of one share of each of its 30 stocks by a 'divisor,' currently 0.34599543.

"This means a big dollar change in a high-priced stock like IBM counts for more than a big percentage shift in a cheaper stock like GM." (Worth, Feb.)

CEO CORNER: A. B. "Buzzy" Krongard, Alex. Brown CEO, is pictured and written up extensively in Research magazine, Jan. Excerpts from Mr. Krongard's responses:

"My biggest turn-ons are the people the job brings me in touch with. A lot of my day is reactive, problem-solving. Ours is the only industry I know of where you can walk into work in the morning and be out of business by afternoon."

HELPING HANDS: "People with 401(k) plans may soon get more help from employers. The government drafted regulations, soon to take effect, that urge employers to assist co-workers with investment choices." (U.S. News & World Report, Jan. 22)

"Nowadays, investors with an itch to do their own research are firing up their personal computers and heading for the World Wide Web." (U.S. News & World Report, Jan. 29)

BALTIMORE BEAT: "Leading Borrowing Deals in Baltimore," according to Money, Feb.: Fixed-rate 30-year, Signet Mortgage (410) 515-1238; one-year adjustable, Baltimore County Savings (410) 256-5000; home equity line: First Fidelity, now First Union (410) 244-3360; car loan, American National Savings (410) 752-0400. Call each firm for current rates.

MORE LOCAL: "We're aiming for Bethlehem Steel to sell at $24 this year, a possible 71 percent profit." (John Maack, steel analyst, in Money, Feb.)

JANUARY JOURNAL: "Super Bowl ticket prices in 1967: $8, $10, $12. This year: $250, scalper's price $1,450 Average player's salary in 1966: $23,000; today: $700,000 Super Bowl beer in 1966: $1.25, today: $4." (National Football League and Sports Almanac figures)

Tonight's guest on "Wall Street Week With Louis Rukeyser" is Samuel Stewart Jr., manager, Wasatch Aggressive Equity Fund, with panelists Ralph Acampora, Frank Cappiello and Allison Deans.

"If you think Congress won't enact a flat tax, consider buying tax-free bonds. Triple-A tax-frees yield around 88 percent of taxable Treasuries, a near-record narrow spread." (Financial World, Jan. 30)

"If your goal is for a stock to gain 20 percent, sell when it hits that point. If the most you're willing to lose is 20 percent, sell if it drops to that level." (Black Enterprise, Feb.)

NOTES & QUOTES: "Many Chinese stocks, like minibus maker Brilliance China Automotive, exploded recently. We're buying them." (Mark Mobius, head of seven Franklin Templeton funds)

"Money goes where it's treated best. With interest rates low now, bonds are out of style. Money flows into stocks, this trend unlikely to change." (Cabot Market Letter)

"To have a stated mutual fund goal of being No. 1 is dangerous. People will do anything, including taking extraordinary risks." (Smart Money, Feb.)

"Bond yields are going down. By next spring there will be lots of talk of recession." (Edward Hyman, Wall Street economist.)

"Cyclical stocks are really cheap now, but we're avoiding many of them because of the danger of an economic slowdown." (Delphi Management)

LAST CALL! Postmark deadline is midnight Sunday for your postcards in our Dow Jones forecasting contest. Details in Wednesday's Ticker, Jan. 24.

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