Smart Market Moves

You don't need to gamble in today's market. Our panel of experts give you the best bets for 1999.

slew of winners. He selected First Brands, the maker of such products as Glad food wraps and bags and Scoop Away kitty litter; Whitman, the owner of Pepsi-Cola General Bottlers, its largest and most profitable franchise; and Allergan, the eye-care products manufacturer.
Est. 5-Year
Stock Current Price at Total Annual
(Exchange: Symbol) Price* Recommendation Return EPS Growth

Stock (Exchange: Symbol)


Price at

Est. 5-Year
Total Return

EPS Growth

First Brands (NYSE: FBR) $42.19 $27.00 56.3% 14.5
Whitman (NYSE: WH) 20.00 16.00 25.0 14.6
Allergan (NYSE: AGN) 76.13 34.50 120.7 13.5
*As of 2/1/99

As founder of an institutional money management firm, Forbes finds large stocks that she believes will produce annual returns of at least 10%. All but one of her picks bore out her philosophy. Johnson & Johnson, one of the world’s largest pharmaceutical companies, demonstrated consistent growth and had limited exposure to troubled markets overseas, and Wal-Mart realized a significant boost during the Christmas season. SBC Communications, which split 2 for 1 in 1998, merged with Pacific Telesis. It is expected to generate more than $1 billion in net income over the next year.

Stock (Exchange: Symbol)

Current Price*

Price at Recommendation

Est. 5-Year Total Return

Annual EPS Growth

Johnson & Johnson
$83.69 $67.25 24.4% 12.9
84.50 39.5 113.9 13.8
SBC Communications
52.56* 37.63** 39.7 10.9
*As of 2/1/99
**Adjusted for 2-for-1 stock split
Source: Zacks Investment Research

Lou Holland

Lou Holland Growth Fund
Holland’s 1999 equity picks:

Company 52-week High/Low* P/E
Long’s $43.50/26.50 23.7
Mellon 78.00/49.00 20.6
Elan 75.94/51.56 35.7
*As of 2/1/99
Source: Zacks Investment Research

Long’s Drug Store (NYSE: LDG): The company is one of the leaders in the pharmacy industry. It competes with local and national chains as well as independent merchants. What Holland likes about Long’s is not only that the company is well managed, but it’s also a play on the consolidation in the drug retail industry.

Mellon Bank Corp.(NYSE: MEL): The bank holding company ranks among the nation’s largest. Besides offering a range of financial and investment banking services for individuals and corporate clients, the Pittsburgh-based concern also controls Dreyfus Corp., the mutual fund company, and has benefited from massive inflows into stock funds by individual investors. One of the reasons Holland likes the company is because he expects the trend of baby boomers moving from consumption mode to investment and savings mode, to continue.
Elan Corp. (NYSE: ELN): Elan, which manufactures, markets and licenses drug delivery systems, is what Holland calls “a pristine company.” Aggressive and well managed, the concern is expected to generate 25% to 30% earnings per share growth over the next several years. In fact, its most recent project is a joint venture with London-based Vanguard Medical Group to produce Miguarde, a drug that will target the 20 million Americans who suffer from migraines.

C. Kim Goodwin American Century Growth Fund
Goodwin’s 1999 equity picks:

Company 52-week High/Low* P/E
Microsoft $175.00/74.13 76.4
Airtouch 97.88/42.69 97.5
EMC Corp. 108.88/32.56 72.5
*As of 2/1/99
Source: Zacks Investment Research

Microsoft (Nasdaq: MSFT): Despite its antitrust challenge from the Justice Dept. the company is her “old reliable.” In January, the software manufacturer’s profits surged 75% for its fiscal second quarter. In 1999, Goodwin expects to make

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