low-tomid $70s over the next year. Another one is Chrysler; the company has large cash reserves: that will help tide them over any down period comes about. We like their product lines, design, performance and quality. They’re in the $35.50 stock price right now and the stock should bring about a 20% total return over the next year. Ameritech’s another. They have good management, and I think the company is stronger than a lot of the local phone companies. They are at $68.75 a share right now. We would see them in over the course of a year at approximately $70. They currently have a 15 P/E. Another big name we’ve mentioned already is Microsoft. They are at $ 101.13 right now. We see the stock approaching $ 100.
BE: Any advice on leaving?
JACKSON: You are talking about young couples putting their life savings into stocks that they know nothing about. That’s disconcerting.
SELF: My piece of advice is: make sure that you balance your portfolio. If you’ve set an asset allocation of 50/50 stocks to bonds, after a good year where the stock market performed so much better than the bond market, you might be at 60/40. Have the discipline to: get it back to 50/50 and stay on the long-term track.
Service Corp. (NYSE: SRV, $28,38(*)). Funeral home operator is well managed; a good play on aging of America.
Philip Morris (NYSE: MO, $119.88). Tobacco maker’s stock is cheap at P/E of 13; should grow over 15% and offers 4% yield.
AES Corp. (NYSE: AES, $57.13). Manufactures power plants worldwide; stock is pricey, but growth prospects make this a good international play.
Consolidated Stores (NYSE: CNS, $33.13). Off-price retailing is booming as America tightens its purse strings.
Dover Corp. (NYSE: DOV, $49.38). The company is well run, and includes an elevator manufacturer and microchip maker.
Medtronic (NYSE: MDT, $68.63), This maker of medical devices is growing rapidly, and has investigated new markets for its cardiac
Citicorp (NYSE: CCI, $114.25). With its strong global franchise, the company has reestablished its dividend; trades at a P/E of 12, below its
14% long-term growth rate.
(*) Share prices as of 1/30/97
Self recommends building a portfolio of Treasuries with “laddered” maturities that include 2-, 3-, 4- and 5-year issues. At the cost of a little extra risk, investors can move to 10-year Treasury strips.
2-year Treasury note 5.94%
3-year Treasury note 6.10%
4-year Treasury note 6.19%
5-year Treasury note 6.31%
10-year Treasury note 6.56%
C. KIM GOODWIN
Cisco Systems (NASDAQ: CSCO, $67.50(*)), A market leader in computer networking, Cisco is a dominant player in its niche.
Washington Mutual (NASDAQ: WAMU, $51.25). Bank has aggressively expanded and is making strides in the California market.
Estee Lauder (NYSE: EL, $48.38). Cosmetics company is bringing on new products and expanding into overseas markets to feed 18% earnings growth.
TJX (NYSE: TJX, $39.88). Off-price retailer is expanding smartly and surprising
Wall Street with robust earnings reports.
Parametric Technology (NASDAQ: PMTC, $57.63) Leading computer design firm is a market share leader; earnings are growing at 30%-plus.
U.S. Filter (NYSE: USF, $35.75). No. 1 maker of water treatment systems is