It’s been said that abundance is, in large part, an attitude. For Alfred Jackson of Davis Hamilton Jackson & Associates, the prevailing investment attitude at the moment is to buy safe, hold on, and diversify as is reflected by the portfolio of five stocks he crafted for BLACK ENTERPRISE readers.
For the past 15 years, the former Atlanta Falcons wide receiver has been a principal with the Houston — based asset management firm, which manages more than $4.7 billion (Jackson merged his own firm with Robert Davis and Jack Hamilton in 1988). In 2004, Jackson founded a private equity firm, Capital Point Partners, which specializes in mezzanine investments with a diverse group of companies across the country. In 2005, Jackson’s venture capital fund was one of two funds in which a New Mexico investment advisory committee recommended that the state of New Mexico invest a combined $50 million.
Jackson’s Stock Picks
Ecolab Inc.(NYSE: ECL)
Price:$45.30
12 — to 18 — month target:$50.00
P/E on projected 2007 earnings:27.8
Est. 5 — year annual EPS growth rate:14%
Why stock will outperform: It’s the leader in developing and marketing sanitizing products for the hospitality and industrial end markets. Shrinking competition opened up further market share gain.
Source: Alfred Jackson, Yahoo! Finance.
price As of close on Nov. 10, 2006
Precision Castparts Corp. (NYSE: PCP)
Price:$68.31
12 — to 18 — month target:$86.00
P/E on projected 2007 earnings:14.5
Est. 5 — year annual EPS growth rate: 15%
Why stock will outperform:A top aircraft parts manufacturer, the industrial products segment operates in the U.S., the U.K., and other countries. In 2005, the group acquired Air Industries Corp.
Cognizant Technology Solutions Corp.(Nasdaq: CTSH)
Price:$76.24
12 — to 18 — month target:$92.00
P/E on projected 2007 earnings:37.2
Est. 5 — year annual EPS growth rate: 35%
Why stock will outperform:The company offers off — shore IT consulting services. IT outsourcing demand remains robust as corporations worldwide seek to cut costs and leverage technology.
PepsiCo Inc. (NYSE: PEP)
Price:$62.26
12 — to 18 — month target:$71.00
P/E on projected 2007 earnings:18.9
Est. 5 — year annual EPS growth rate: 11%
Why stock will outperform:The manufacture of carbonated and non — carbonated beverages and foods continues to benefit from growth overseas, especially in Latin America.
YOUR FINANCIAL ADVISeR
United Technologies Corp.(NYSE: UTX)
Price:$64.80
12 — to 18 — month target:$75.00
P/E on projected 2007 earnings:15.7
Est. 5 — year annual EPS growth rate: 11%
Why stock will outperform:This company, which provides high — technology products and services, is benefiting from a strong aerospace cycle as well as a healthy commercial environment.