Finding 25 great values in a depressed market

The Ticker

October 03, 2001|By JULIUS WESTHEIMER

WITH a cloudy future, what stocks should we buy?

This week's Barron's, dated Oct. 1, runs a cover story listing "25 Great Values in a Depressed Market." The following stocks are included with (in parentheses) estimated 2002 price-earnings ratios:

General Electric Co. (22); Exxon Mobil Corp. (18); SBC Communications Inc. (18); Merck & Co., Inc. (18); AOL Time Warner Inc. (20); Procter & Gamble Co. (21); Fannie Mae (14) and Tyco International Ltd. (13.)

The article adds, "Many of these stocks are selling for around 20 times next year's earnings, considered a relatively reasonable multiple."

START EARLY: "Get a head start on year-end tax planning," says Bottom Line. "Estimate capital gains, talk with financial advisers about taking losses to offset any gains and postpone investing money in mutual funds until after capital gains distributions."

WALL STREET WATCH: "Buying a diversified group of stocks will pay off over 12 months. Use Treasury bonds as a source of funds, since bond prices are elevated by the rush to safety." (Advisors Financial Center)

"Lower interest rates will boost the economy. While business won't take off right away, the future is brighter than you will hear about. When the financial elite capitulates, the bottom is near." (Griffin Cubic Stephens Market Letter)

"I have a target of 10,000 for the Dow Jones average by the middle of 2002 or sooner. Our recovery effort could stimulate the economy and the stock market." (Gail Dudack, market strategist)

"Depressed stem cell companies have excellent long-term prospects. Our two recommendations are Select Therapeutics Inc. and StemCells Inc." (Stock Trader's Almanac Investor)

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