Looking Toward Expansion

Barbara Bowles of The Kenwood Group is positioning her portfolio for growth

boon to the Renal Care Group’s prospects. Becton, Dickinson should also see its earning power increase internationally with the development of new diabetes products and potential safety product legislation.

Bowles’ final selection is the money management and mutual fund firm Janus Capital Group (NYSE: JNS). Controversy over the trading practices of the fund industry’s big players, which includes Janus, have sent the stock’s price lower. Bowles thinks the market has overreacted, leaving Janus shares a tempting target to overseas banks that may desire a U.S. presence.

BARBARA L. BOWLES’ Private Screening Picks

Company
Exchange: Symbol
Price* 12- to 18-Month
Price Target
P/E on Projected
2004 Earnings
Est. 5-Yr.
Annual EPS
Growth Rate
Why Stock Will Outperform
Kroll Inc.
Nasdaq: KROL
$23.48 $34.00 23.5% 16.8% Demand is high for the company’s accounting and screening skills, and the individual companies that comprise Kroll are worth more than the company’s stock price.
Western Digital Corp.
NYSE: WDC
$13.15 $17.00 13.5% 10.0% Earnings are expected to grow as a result of the rational pricing environment, and costs may go down as a result of Western’s vertical integration initiatives.
Renal Care Group
NYSE: RCI
$39.53 $46.00 19.5% 13.6% Renal’s profits could climb on news that Medicare legislation may boost dialysis spending.
Becton, Dickinson & Co.
NYSE: BDX
$37.71 $42.00 17.7% 12.7% Becton, Dickinson may benefit internationally from increasing momentum for new blood glucose monitoring diabetes products and approved safety legislation.
Janus Capital Group
NYSE: JNS
$13.90 $18.00 19.0% 9.9% Questions regarding mutual fund trading have hit Janus’ shares, an overreaction that has the stock trading at an attractive price.
*STOCK PRICES AS OF 11/13/03. SOURCES: MORNINGSTAR; THE KENWOOD GROUP; YAHOO! FINANCE; ZACKS.
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