`Core' companies' growth makes them attractive

The Ticker

November 07, 2001|By Julius Westheimer

WOULD you like to have growth and low volatility? Craig Smith, portfolio manager, AIM Funds, suggests Target Corp. ("currently undervalued"), J.P. Morgan Chase & Co. ("global finance company will do better as the economy improves"), Microsoft Corp. ("increasing earnings and great appreciation potential") and Genzyme Corp. ("high-quality undervalued biotech company").

Smith explains, "We use earnings as key to long-term positive returns. Also, we like basic `core' companies growing at a greater rate than the average firm."

CHECKLIST: Here is a "To Do" list from Black Enterprise: "Invest money from every paycheck. Keep an emergency fund with three to six months' expenses. Put as much as you can in your 401(k) or 403(b). Use your combined incomes to pay off credit cards faster. Buy life and disability insurance in case of unexpected death, injury or illness."

WALL STREET WATCH: "Stocks look good. A rally is in progress, and stocks haven't become overbought. The downward momentum has evaporated." (Rabbitt Analytics Strategy, in this week's Barron's)

"A bear market is an opportunity in disguise. With strong growth, good companies became better buying opportunities. Ignore the doomsayers." (Better Investing)

"I've been buying stocks slowly and very cautiously. In a really disturbed market, any bad news can knock things a lot lower." (David Dreman, money manager)

"Now is no time to sell. If you have the nerve to buy, values abound." (Michael Sivy, financial writer, in Money, November)

"We're in a bear market of unknown duration. This recession could get worse. Big money is made when everyone thinks the sky is falling. We'll be scooping up bargains." (Charles Allmon, New Issue Digest)

"The road ahead will be rough - especially on the military side. Also, we face risk of more terrorist attacks. But the economy continues to improve, and this suggests that stocks have seen their lows." (Advisors Financial Center)

Because market action is finally encouraging, this is an opportunity to add to long-term holdings." (S&P Outlook)

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