Some badly beaten growth stocks are bargains

The Ticker

March 15, 2000

Are you joining the stampede to buy technology stocks while ignoring depressed "old economy" issues?

"A handful of hot technology stocks are soaring, but a growing number of top-notch growth stocks are being unfairly battered," says Money magazine. The article lists these issues under "Blue Chip Bargains: " United Technologies Corp., Gillette Co., Merck & Co. Inc., Campbell Soup Co., Diebold Inc., Fannie Mae and SBC Communications Inc.

"A company's earnings can be manipulated but total revenues are hard to fudge. Rapid sales growth indicates a successful company. "The 10 companies with the fastest sales growth in 1998 showed an average stock gain of 129 percent." (Kiplinger's Personal Finance Magazine)

WALL ST. WATCH: "Common sense tells you that companies such as Coca-Cola Co., Diebold Inc., Johnson & Johnson, Newell Rubbermaid Co. and Sara Lee Corp. will not stay down forever. Their brands evoke loyalty and respect." (Moneypaper)

"America has two different stock markets -- technology vs. everything else, new economy vs. old economy, the Nasdaq vs. the Dow. This yawning gap has to close, but nobody knows when." (Barron's)

"In a volatile market, it can't hurt to own some stocks that are cheap relative to their cash flow." (Forbes)

"In this market, where most stocks are down for the year and many sharply off their recent highs, blue-chip opportunities abound." (Prudent Speculator)

"Resist selling high-tech stocks when bouts of profit-taking set in for a few hours, usually in the morning. Tech stocks aren't going away." (U.S. Investment Report)

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