Correction… Crash… Or Crisis?

Money manager Randall Eley shows how to pick stocks that can stand any seismic disturbance

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.

STURDY STOCKS
These stocks not only cheap, says Eley, but they should hold up if the market turns sour.

Company

Exchange:Symbol

Price Yield
Amoco

NYSE: AN

89.81 0.031
Chevron

NYSE: CHV

79.25 0.029
Exxon

NYSE: XON

64.00 0.025
Cigna

NYSE: CI

177.00 0.018
First Chicago

NYSE: FCN

85.34 0.020
J.P. Morgan

NYSE: JPM

125.44 0.028
Dow Chemical

NYSE: DOW

100.75 0.034
Philip Morris

NYSE: MO

45.44 0.035
AT&T

NYSE: T

57.34 0.023
[*] As of 12/5/97
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