In This Corner

As the volatile stock market climbs to new highs, investors continue to fight for the best returns. Our investment roundtable tries to pick the winners as the battle between growth and value rages.

and bounces around down there for a while. If Y2K happens, a lot of other stuff is going to happen, [such as higher ] interest rates. The market will come back in the latter half of 2000.

Paige: Well, you are definitely going to have to be a contrarian then. You’re going to have to be able to hold your gut and buy.

B.E.: In this volatile market, what do you view as the best stock-picking strategy?
Pearson: Just buy what you know: the old Peter Lynch philosophy, and he made a ton of money. A lot of folks work at a particular company. They know the company better than anybody else.

Alston Paige’s Value Stock Picks

Company/Ticker

52 Week
High/Low

P/E

One-Year
Return

SCI Systems Inc.
(NYSE: SCI)

59.37/20.75

24.91

61.17

Allmerica Financial Corp.
(NYSE: AFC)

75.25/38.37

14.26

-12.55

Saks Inc.
(NYSE: SKS)

39.50/16.37

13.65

-29.69

SCI Systems Inc.: The company designs and manufactures electronic products. Alston Paige believes that the outsourcing strategy will continue to fuel the company’s growth.

Allmerica Financial Corp.: Allmerica markets insurance and retirement savings products and services for individuals and institutions. With the aging baby boomer population, Alston Paige says it is the stock to hold.

Saks Inc.: The company owns some of the best franchises in retailing, including Saks Fifth Avenue, Proffitt’s and Carson Pirie Scott. Alston Paige expects the company to continue to grow with the strong consumer market.

Source: Bloomberg; blackenterprise.com

Lew’s 1999 Growth Stock Picks

Company/Ticker

52 Week
High/Low

One-Year P/E

Return

EMC Corp
(NYSE: EMC)

67.46/20.84

62.98

112.59

Nortel Networks Corp.
(NYSE: NT)

94.12/26.81

48.4

54.46

Oracle
(Nasdaq: ORCL)

41.16/12.12

41.34

121.57

EMC Corp.: The company designs, manufactures, markets and supports hardware and software products for the burgeoning enterprise storage market. In the post-Y2K environment, Lew expects the company to grow through the storage of e-mail.

Nortel Networks Corp.: What makes the telecom equipment manufacturer attractive to Lew is the company’s strong European presence and its emphasis on wireless communications.

Oracle Corp.: Although the stock plunged last year, Oracle has made a roaring comeback. As companies automate front-office functions with the use of the Internet, Lew expects the enterprise information software maker to be the leader.

Source: Bloomberg; blackenterprise.com

Pearson’s Growth Stock Picks

Company/Ticker

52 Week
High/Low

One-Year P/E

Return

Tyco International Ltd.
(NYSE: TYC)

104.50/40.25

35.72

60.91

International Business Machines Corp.
(NYSE: IBM)

139.18/55.37

32.98

89.09

Cisco Systems
(Nasdaq: CSCO)

69.25/20.56

83.25

79.85

Tyco International Ltd.: This diversified manufacturing and service company is Pearson’s No. 1 pick, as

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