Patience Pays Off

Your financial advisor Contrarian investor Thomason always stays calm

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.

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