with Intel’s Pentium juggernaut, but Thomason says its next generation product is on schedule and will hold its own. He projects that the stock will be selling for $60 a share within 12-18 months.
Hewlett-Packard (NYSE: HOOP) qualifies as a good technology play, if only because its laser printers and computer peripherals hog desk space in virtually every corporation in America. “This is a good first stock that should be in everyone’s portfolio,” he says. He forecasts $65 a share within 121 8 months.
Thomason thinks management at Morgan Products (NYSE: MGN) has a good sense of the company’s market, which includes interior doors, stairways and windows. “Housing starts are beginning to turn around, and home improvement is going to continue to be a big market as long as mortgage rates remain low,” he notes. Thomason thinks the stock, currently at $7.63, could rise to $10 in 12-18 months and has a chance to really take off. He projects earnings to grow at a 20%-25% dip.
A play in the generic drug market is Mylan Labs (NYSE: MYL). a pharmaceutical resale company. He feels management has stocked the company’s product pipeline with potential winners, such as a treatment for Parkinson’s disease. He anticipates $22 a share within the next 12- 18 months.
Finally, Thomason is high on Toys `R’ Us (NYSE: TOY). A re-release of the Star Wars series and an acquisition of Baby Superstores should help propel the stock, he says. Thomason anticipates $35 a share with in 12- 18 months.