Toys R Us. We’ve seen some [retail] stocks do very, very well post-Sept. 11. We like Toys R Us in that space. Its CEO came over from FAO Schwartz and has a very good vision of how to reposition the stores. Their new store format, called Mission Impossible, is looking very promising.
Charles Payne Wall Street Strategies
|Price at||5-Year Estimated|
|Company (Exchange: Ticker)||Recommendation*||EPS Growth Rate|
|Nokia (NYSE: NOK)||$23.18||18.4%|
|AOL Time Warner (NYSE: AOL)||26.40||23.2|
|Applied Material (Nasdaq: AMAT)||43.16||21.8|
|Concurrent Computer (Nasdaq: CCUR)||13.12||43.3|
|Open Wave (Nasdaq: OPWV)||6.68||44.1|
|*AS OF DATE: JAN. 30, 2002
SOURCE: YAHOO! FINANCE.COM; ZACKS.COM
Wireless Technology. If you’re thinking [of] the future, m-commerce one day will be a reality. We’ll have enough potential to send data through your cell phones, to ultimately download a movie on them. Those things make life easier, and that’s why they will come to fruition one day.
Biotech. Biotech stocks recently have had a bit of bad news. They don’t really have any blockbusters to follow up the pipeline. But still, you have to find a way to play on aging baby boomers. This is going to be a tremendous market.
Nokia. “On the wireless side, Nokia is obviously the way you want to play it. It is one of the few companies in the world that actually has pricing power. [Management has been] pretty aggressive and smart.
AOL Time Warner. [The company] has new management that has taken some real smart moves. It has tempered expectations so that, going forward, it doesn’t have to score 100 points to be the star of the game. It can be more realistic, like Michael Jordan scoring 18.
Applied Material. It makes semiconductor equipment. It’s a well managed company that delivers, [but it's in] a very cyclical industry. If you buy it at $40 and it goes to $70, consider taking it off the table, and not riding out the down periods.
Concurrent Computer. [This stock is] for the more aggressive investor. This is a company in the video on demand space that has tremendous potential. I would consider it higher risk because this industry hasn’t materialized yet.
Open Wave. I want to label this one high risk. Open Wave is sort of a platform for wireless providers and getting data from landlines into handsets. It’s a company that is so well positioned. Again, I add the caveat that it could be extremely volatile.
April 2001 B.E. Stock Update
War. Recession. Market turbulence. Last year’s events challenged the stock-picking prowess of our four roundtable participants: Paul Viera, CEO of EARNEST Partners (No.6 on the 2001 BE ASSET MANAGERS list with $2.45 billion in assets under management); Eugene Profit, portfolio manager of the five-star Profit Value Fund (PVALX); Dail St. Claire, formerly of Amalgamated Bank and a former member of the team that managed the LongView Quantitative Fund; and Steve Sanders, president of MDL Capital Management (No. 7 on the 2001 BE ASSET MANAGERS list with $2.30 billion in assets under management).