yearly highs for each stock and dividing by the reported earnings that year. Second, we want to make sure a company’s debt-to-total-capital ratio is no more than 50%. We look for companies with steady dividends, a sign that business is good enough for management to want to share profits with stockholders.
Q: Using your strategies, and looking at long-term value, what looks good right now?
Eley: We continue to favor oil and financial stocks that look good in this environment. And, finally, Dow Chemical and AT&T look particularly undervalued.
|[*] As of 12/5/97|