Investing For Your Security

Social Security reform, market fluctuations, and inflationary pressures mean you've got to take an active role in securing your finances. Our expert panel of money managers tells you what to do with your money now.

has projected earnings growth over the next three to five years of about 17%. The trend of outsourcing redundant tasks is going to continue. And, ACS is probably an acquisition target because IBM is getting heavier into that business.

Walt Disney: It’s the crown jewel of media because they have a set of assets that’s unmatched. It’s the first time in the company’s history that all divisions are doing well at the same time. The company has leverage to have 15% to 20% growth over the next three years.

Company (Exchange: Ticker)

Price at Recommendation*

24-Month Price Target

Pfizer Inc. (NYSE: PFE) $24.30 $50
Affiliated Computer Services (NYSE: ACS) 52.05 70
Walt Disney (NYSE: DIS) 28.15  40
*As of Jan. 21, 2005
Sources: Yahoo! Finance, Ted Parrish

 

Brian Jeffries Ambassador Capital Management
We believe individual investors should focus on municipals in 2005. If you live in a state that has a local tax rate, you want to stay focused on municipals from that state, if you can. Focus on the short term and intermediate area. We advocate mutual funds because an institutional money manager should be on top of all the market information, and you get better prices when you buy in bulk. Look at a fund with a relatively fair expense ratio, anywhere from 50 to 75 basis points. Funds such as the Munder Intermediate Bond A (MUMAX), Munder Tax-Free Short Intermediate Bond A (MUTAX), and Dreyfus Intermediate Municipal Bond (DITEX) are fairly priced.

Company (Ticker)

Price at Recommendation*

3-Year Annualized Return

Munder Inter. Bond A (MUMAX) $9.53 4.61%
Munder Tax-Free Short Inter. Bond A (MUTAX) 10.40 2.97
Dreyfus Inter. Municipal Bond (DITEX) 13.56 4.61
*As of Jan. 21, 2005
Sources: Yahoo! Finance, Brian Jeffries

 


Michael Ray Legg Mason Funds Management
Citigroup: One of the most dominant financial companies in the world, their 3.4% dividend yield is nearly twice the dividend yield of the market average. They’ll grow earnings 10% to 12%.

General Electric: It’s a broadly diversified company that is AAA-rated. They have a great management team and a 2.5% dividend yield. GE should return 7% to 10% this year, plus you get a 2.5% dividend yield.

Nextel: The announced merger with Sprint should make it the fourth largest telecom and wireless company in the U.S. It generates excellent cash flow and also has above average-earnings growth. Nextel will benefit from call savings and synergies after the merger.

Company (Exchange: Ticker)

Price at Recommendation*

24-Month Price Target

Citibank (NYSE: C) $47.51 $52.26
General Electric (NYSE: GE) 35.13 37.59
Nextel Comm. (NASDAQ: NXTL) 28.59 N/A**
*As of Jan. 21, 2005
**Growth estimates unavailable due to pending merger
Sources: Yahoo! Finance, Michael Ray B.E. Research

 


Last Year’s Picks
Although the markets were up last year, our panel found it difficult to

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