The Linchpin For Growth

Union Heritage's Derek Batts relies on return on equity for portfolio performance

roots in Ohio and branches in Indiana, Kentucky, Michigan, and Pennsylvania. National has benefited from low interest rates and a booming mortgage market. Currently, it has a ROE of 20.1 with a dividend yield of 4.4%.

Derek Batts’ Private Screening Picks

Company
Exchange: Symbol
Price* 12-18 Month
Price-Target
P/E on Projected
2003 Earnings
Est. 5-Yr.
Annual EPS
Growth Rate
Why Stock Will Outperform
Abbott Laboratories
NYSE: ABT
$42.94 $50 19.7 12.5 Abbott’s pipeline of high-profile treatments is well stocked.
Barr Laboratories
NYSE: BRL
66.26 79 16.5 23 The company’s generic lineup should work well to keep profits strong.
General Motors
NYSE: GM
37.25 42 5.8 5.9 GM’s pension plan troubles are priced in the stock, while a 5% yield provides good compensation for investors.
Plantronics
NYSE: PLT
17.51 23 20.0 13 Consumer and government worries over traditional cellular phone handsets works in Plantronics’ favor.
National City
NYSE: NCC
27.72 32 10.5 8.6 Low rates and strong demand for mortgages has helped National sail in 2002.
*AS OF DEC. 6, 2002
SOURCES: DEREK BATTS, UNION HERITAGE; MORNINGSTAR INC.;
YAHOO! FINANCE; ZACKS INVESTMENT RESEARCH
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