High-tech Investing

Elroi picks winning growth stocks

WorldCom’s line.” Singleton expects shares of Lucent to climb to $140 over the next year, and he projects MCI WorldCom will rise to $100.

Singleton also favors the financial services, healthcare and retail sectors. While the financial industry is still on a slow rebound after the Asian crisis, the high-tech boom has pushed companies to constantly create new products and services.

Charles Schwab (NYSE: SCH) the San Francisco-based discount brokerage firm, currently dominates the online trading market, and will continue to expand in that area. In early January, its stock was selling for $60.88, and Singleton projects it to reach $72 by June.

This phenomenon bodes well for discount stores like Wal-Mart. Singleton expects Wal-Mart (NYSE: WMT) shares to reach $95 by the end of the year.

Singleton also expects the drug industry to remain vibrant, with companies like Pharmacia & Upjohn (NYSE: PNU) posting double-digit growth rates. Because of the firm’s expected earnings cycle, Singleton has set a 12-month price target of $65 for Pharmacia & Upjohn. He also notes that although the stock was a dog for a long time, it turned around in 1998 and has yet to see the same dramatic price gains as competitors Merck and Pfizer.

With Elroi’s help, Singleton is betting that he’s made the right picks. His clients are counting on it.

ELROI’S TOP PICKS

Company

Exchange: Symbol

Current
Price *

Alpha

Est. 5-Yr.
Annual EPS Growth Rate

Charles Schwab

NYSE: SCH

$ 60.88

0.61

21%
Lucent Technologies

NYSE: LU

115.25

2.09

22
MCI WorldCom

Nasdaq: COM

75.00

1.93

30
Pharmacia & Upjohn

NYSE: PNU

56.50

1.20

12
Wal-Mart

NYSE: WMT

83.50

1.61

14
* As of 1/8/99
Alpha figures from Elroi; EPS growth rates from Zacks Investment Research.
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