This Bull Has Legs

The longest bull market in history stampedes on

from nondrug distribution units Pyxis Corp. and Medicine Shoppe International.
Safeway is a major supermarket chain. The Pleasanton, California firm’s private label grocery business has high margins. Also, Safeway’s specialty kiosks, which offer everything from flowers to delicatessen-style sandwiches in its stores will help boost earnings, he says.

Microsoft, the Redmond, Washington, software giant, may not be an Internet company per se, but Manns maintains the company’s investments in several Internet ventures are a hidden value that should drive the stock. He expects the rollout of Windows 2000 to also boost earnings.

MANN’S STOCK PICKS

Stock (Exchange: Ticker)

Price at Recommendation*

5-Year Estimated EPS Growth Rate

Cardinal Health (NYSE: CAH) $ 49.31 20.9%
Safeway (NYSE: SWY) 34.31 17.2
Microsoft (Nasdaq: MSFT) 116.56 24.6
* As of January 3, 2000

HUGHES’ BOND AND SECTOR PICKS
Short-term corporate bonds and foreign bonds denominated in U.S. dollars, also known as Yankees, are areas Hughes is betting on.
She likes Petroleos de Mexico finance bonds, issued by the national oil company of Mexico, particularly those maturing in February 2007 with an 8.75% coupon. Among the positive characteristics: proceeds from oil sales are used to pay off the debt. Also, while Mexico has a sovereign debt rating of double-B, the bonds are rated triple-B-and thus are investment-grade securities.

Also getting her nod: bonds issued by Waste Management, the trash hauling company, and South Korean electric utility bonds.
Hughes warns retail investors looking for good fixed-income investments to stick with bond funds, since there is spotty research available to mom-and-pop investors on individual securities.

HUGHES’ BOND AND SECTOR PICKS

Name Coupon Maturity
Petroleos de Mexico finance bond 8.75% February 2007
South Korea Electric Utility 6.375 December 2003

EWING’S STOCK PICKS
Finova Group, based in Phoenix, Arizona, provides capital and loans to middle market companies with financing needs of between $500,000 and $35 million. Ewing thinks that despite the potential credit risk in a rising interest-rate environment, there is a solid market for middle market lending.

IFX is an Internet service provider catering to Latin America. The Northbrook, Illinois, company stands to benefit from its investments in ISPs operating south of the border, a market estimated to increase to $8 billion.

Sysco, the largest distributor and marketer of food service products in North America, is a dependable, long-term performer in its industry, Ewing says. He thinks the Houston, Texas, firm-well known as an acquirer of smaller industry rivals-will continue to benefit from consolidation in the food service sector.

EWING’S STOCK PICKS

Stock (Exchange: Ticker) Price at Recommendation* 5-Year Estimated EPS Growth Rate
Finova Group (NYSE: FNV) $33.81 16.3%
IFX (Nasdaq: FUTR) 31.88 N/A
Sysco (NYSE: SYY) 38.13 12.8
*As of January 3, 2000

MOSLEY DIAMOND’S BOND AND SECTOR PICKS
In choosing fixed-income investments, Mosley

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