Contrarian advisers favor picking up `also rans'

The Ticker

April 14, 1999|By JULIUS WESTHEIMER

LIKE TO chase high-tech, high-flying stocks? Here's contrarian advice:

"Buying strong companies beaten up by a fickle market is the safest, most profitable way to invest," says Kiplinger's Personal Finance Adviser.

"Consider stocks down 50 percent or so. Examples: Borders Group (books); Schlumberger Ltd. (oil services); Service Corporation International (chain of funeral homes); Silicon Valley Group (semiconductors) and Deere & Co. (farm equipment)."

Martin Sosnoff writes in Forbes: "When the market seems priced for perfection, look for imperfection. Buy some `also rans,' stocks way off their highs like Warner Lambert Co., Dell Computer Corp., Intel Corp. and Philip Morris Cos."

LAST CALL: "Lowering your 1998 taxes didn't end on Dec. 31. Contribute to retirement plans by April 15 (tomorrow), and lower your tax bills. Put $2,000 in an IRA and deduct it from 1998 income." (Rosen, Seymour, Shapass, CPAs)

WORTH CHECKING: "Recently, 340 out of 500 closed-end funds sold below `net asset value' (stocks' values in the fund). Investors who bought Clemente Growth Fund in October 1997 at a 22 percent discount and sold one year later made a 33 percent profit." (U.S. News & World Report)

WALL ST. WATCH: "The Dow will end the year around 10,500. It began around 9,100, so there will be about a 15 percent gain, not bad in a low-inflation climate." (Deborah Allen, financial consultant)

"We see signs of market strength. The fact that the Nasdaq has been stronger on a relative-strength basis was historically healthy for stocks in general." (McClellan Market Report in Barron's)

Pub Date: 4/14/99

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