August 2000
|
Contents Back Issues March 2000 April 2000 May 2000 June 2000 July 2000 Investing Buy & Sell Stocks for traders Model Portfolio Model Portfolio Update Model Portfolio Chart |
The market remained very volatile. On July 3, 2000, Nasdaq Composite index rose 25.82 points, to 3991.93. After rising above the 4000 level, Nasdaq Composite index started the last week of the month with a loss of 112.88 points on July 24 and ended the day at 3981.57. Due to the sell-off in the technology sector Nasdaq Composite index continued to fall and ended the week at 3663.00 on July 28, down 179.23 points for the day. The index lost a whopping 431.45 points, or 10.5 percent during(continued in: Investing). Cytec Industries, Inc. (NYSE symbol: CYT) makes water treating chemicals, specialty resins, polymer additives, structural adhesives and advanced composites for aerospace. During 1999, in Asia, sales of Specialty Chemicals business experienced sales growth of 20 percent. (continued in: Buy & Sell ). Speculators who like to trade frequently could buy stocks listed in this section. Investors should be aware that short-term trading involves much greater risk, and preferably no more than 10% of the portfolio may be invested in these stocks. Many of the stocks in the technology sector should be bought at recent low levels. Speculators could achieve short-term gains, up to 100% on some of these stocks. Computer Associates International, Inc. (NYSE symbol: CA) designs business application software and systems management software that allows computers to run efficiently. In addition, the Company provides software that allows corporations to manage Web infrastructure. (continued in: Stocks for traders). Applied Materials, Inc. (NASDAQ symbol: AMAT) is a major supplier of wafer processing equipment that is used to produce semiconductors. The Company produces systems that use physical vapor deposition technology, chemical vapor deposition and oxide etching. (continued in: Model Portfolio). |
|
Investing The market remained very volatile. On July 3, 2000, Nasdaq Composite index rose 25.82 points, to 3991.93. After rising above the 4000 level, Nasdaq Composite index started the last week of the month with a loss of 112.88 points on July 24 and ended the day at 3981.57. Due to the sell-off in the technology sector Nasdaq Composite index continued to fall and ended the week at 3663.00 on July 28, down 179.23 points for the day. The index lost a whopping 431.45 points, or 10.5 percent during the last week of July. Investors are wondering if the Fed will stop raising interest rates after six increases, or will Alan Greenspan remain an astute, overly cautious inflation fighter and continue to steer the Federal Reserve Board to additional rate hikes in the near future? So far, the latest economic data indicates that economy is slowing, and the sales of new single family homes continue to fall. The decreased demand for new homes will affect the sales of household durable goods such as stoves, refrigerators, dishwashers, and furniture. As the sales of furniture proceed to fall, the revenue of the furniture manufacturers could drop sharply during the next three months, and the stocks of the companies in this sector could test their low levels due to lower earnings. If this were to happen, investors could start to accumulate the stocks in this sector. Be very selective (read “Buy & Sell: The furniture industry” in July 2000). As the consumers are cutting back spending, will it satisfy Federal Reserve Chairman Alan Greenspan, or should investors prepare themselves for another rate hike in the near future? The Fed will meet again in August and October. Although it is not likely that the Fed would raise rates in October, right before the Presidential elections, there could be another increase of 25 basis points, or a quarter of a percent in August, if the Fed perceives that the latest economic data is inflationary. If this were to occur, the psychological effect on the investors could be very negative. Furthermore, another negative event such as price of oil rising again above $30 per barrel, even temporarily, could cause the Dow and the NASDAQ to test their low levels again. During such a scenario, many stocks could reach low levels and this in turn would provide an excellent buying opportunity for speculators. Investors and speculators should review their portfolios. Sell some of your losing stocks and some of your gainers. Generate some cash and be prepared. If there were a correction, buy a few large-cap stocks and hold these short-term, for a probable gain of 50 percent, or higher. As we are nearing second half of the year some of the Internet stocks are beginning to reach reasonable price levels. Investors should be very selective in this sector and preferably acquire the stocks of companies that have high name recognition such as America Online, Amazon.com, and CMGI Inc. Some of these stocks could revisit their lows during the next three months, and some could even fall to lower level. Investors should be patient. For each stock that does not reach its low target level, there could be ten other stocks that will. Investors should remain calm during these volatile markets. Corrections are a normal part of the market cycle and investors should treat them as a buying opportunity. During the next two months the indexes could trade in a narrow range. By the end of October, the market could gather a strong upward momentum and some of the stocks could double in value over the course of five months. We will continue to monitor a group of tech stocks and as soon as these reach their low levels, we will include these in our list of “Stocks for traders”. Back to Top |
|
Buy & Sell Cytec Industries, Inc. (NYSE symbol: CYT) makes water treating chemicals, specialty resins, polymer additives, structural adhesives and advanced composites for aerospace. During 1999, in Asia, sales of Specialty Chemicals business experienced sales growth of 20 percent. In 1999, the Company derived 43 percent of annual revenues from sales outside of the United States. There are 41.6 million shares outstanding. For 1999, annual revenues edged lower to $1.413 billion, from $1.445 billion for 1998. Although net income edged lower, to $121.3 million, earnings rose to $2.73 a share, from $124.7 million, or $2.68 a share for 1998. Total shareholder equity rose to $505.8 million, from $431 million for 1998. During 1999, cash flow provided by operating activities totaled $199.2 million, versus $152.3 million for 1998. The Company continues to expand through internal growth and acquisitions. Since September 30, 1997, Cytec Industries, Inc., has invested approximately $500 million in acquisitions. The Company’s excellent performance is not reflected in its stock. After reaching a 52-week high of $33 per share in April 2000, the stock proceeded to fall. This stock is highly cyclical and due to the fear of recession is oversold. During the next three months this stock could continue to fall and reach approximately $20 per share. As soon as it reaches such a low level, speculators could start accumulating it. This stock could revisit its 52-week high before June 2001. In 1998, this stock reached a high of $58 5/16 and could once again reach this level during the next two years. Nevertheless, if this stock were to revisit its recent 52-week high of $33 by June 2001, speculators could achieve a short-term gain of approximately 50 percent. This stock closed at $31 ¼ on July 31 (price $31/1/4, dividend Nil, and P/E 10). Pacific Aerospace & Electronics, Inc. (NASDAQ symbol: PCTH) manufactures and markets high performance parts for vehicles, aircraft, electronics, and components for satellites. The Company also makes components for the drilling tools used on oil drilling platforms. Over twenty major corporations such as Boeing, Deere & Company, Honeywell, Lockheed Martin, Rolls Royce, purchase components from Pacific Aerospace & Electronics, Inc. The annual revenues almost doubled in fiscal 1999 that ended May 31, 1999, to $107.366 million, from $54.099 million for fiscal 1998. Such an increase was due to the acquisition of Aeromet in England. Due to the higher interest expense, the Company reported a loss of $12.869 million, or $0.74 a share, versus an income of $3.614 million, or $0.27 a share for fiscal 1998. After the acquisition of Aeromet, the Company’s long-term debt rose to $80.220 million, from $9.059 million in fiscal 1998. Furthermore, this acquisition gives the Company a foothold in the European market. The Company continues to diversify and now sales are balanced between Europe Aerospace Group (50%), U.S. Aerospace Group (30%) and U.S. Electronics Group (20%). Although higher debt level will initially impact earnings negatively, after a few years, when the debt level falls substantially, the earnings and the profit margin could proceed to grow in double digits. The Company continues to invest in research and development and holds 32 different patents. Furthermore, the Company’s casting division received a certification award from the Department of Defense. The annual revenues rose from $11.035 million for fiscal 1995 to $107.366 for fiscal 1999. That is a tenfold increase in less than five years. As the Company continues to expand by internal growth and through acquisitions the revenues could continue to grow in double digits. Due to the high level of debt, this stock is not for the faint of heart and could be acquired only by speculators. Although the stock has fallen from its 52-week high of $5 5/8 to $1 19/32 per share, it might have not reached its bottom yet. Speculators should wait and if this stock were to fall below $1 per share during the next three months, then start to accumulate it. Patient speculators, who are willing to hold this stock at least two years could achieve a gain of approximately 400 percent. On July 31, this stock closed at $1 19/32 per share (price $1 19/32, dividend Nil, and P/E nm). Vertical Net, Inc. (NASDAQ symbol: VERT) owns and operates 55 Websites designed as online business-to-business communities. These Websites, known as vertical trade communities are grouped in several industry sectors such as Advanced Technologies, Communications, Environmental, Food and Packaging, Food service, Healthcare, Manufacturing and Metals, Public Sector, Textile and Apparel, and Service. Furthermore, the Company provides catalogs; career services, and conducts auctions. As of December 31, 1999, the Company had 700 employees, versus 200 employees in 1998. There were 62.4 million shares outstanding as of December 31, 1999. For 1999, revenues rose to $20.758 million, from $3.135 million for 1998. Due to the high sales and marketing expenses, the Company posted a loss of $53.480 million, or $0.86 a share, versus a loss of $13.594 million, or $1.32 a share for 1998. As of December 31, 1999, the Company had $14.254 million of cash and cash equivalents, $44.131 million of short-term investments, and $16.885 million of long-term investments. The Company sells storefront and banner advertising. Furthermore, the Company generates additional revenue from auctions, career and education services. During 1999, Vertical Net, Inc. made eleven acquisitions. Among the companies acquired were Safety Online, Oillink, Electric Net, Techspex, LabX and Industry Online. In February 2000, Vertical Net, Inc., agreed to acquire RW Electronics that operates an exchange in the electronics hardware market for $10 million of cash and 720,642 shares of its common stock. In March 2000, the Company acquired Tradeum, Inc., through a merger of VERT Acquisition Corporation, a wholly owned subsidiary of Vertical Net, Inc., for 4 million shares of common stock. On January 20, 2000, the Company announced that Microsoft Corporation made a commitment to invest $100 million dollars in convertible preferred stock of Vertical Net, Inc. Then, on February 2000, Vertical Net, Inc., announced the formation of Vertical Net Europe. This joint venture will be formed with British Telecommunications, plc and Internet Capital Group with Vertical Net, Inc., as the majority shareholder. Furthermore, on March 16, 2000, Vertical Net, Inc., and Eastman Chemical Company, a global chemical manufacturer entered into a joint venture to create an independent Internet marketplace for the paint industry. The newly formed company called Paint and Coatings.com Inc. will have a domain name of www.paintandcoatings.com . During 1999, the stock of Vertical Net, inc., rocketed from a 52-week low of $13 ¾ to a 52-week high of $148 3/8 per share. Investors, who bought this stock in the first half of 1999 and continued to hold it, were rewarded with two stock splits. First split was on August 9, 1999 and the second was on March 17, 2000. Each stock split was two-for-one. After revisiting its high in March 2000, the stock proceeded to descend. Although future revenue projections for business-to-business commerce over the Internet are very optimistic, due to the high fluctuations in the price of this stock, it could be only bought by speculators. This stock could continue to fall during the next three months. Speculators should monitor this stock closely and if it were to fall to approximately $35 per share, to start accumulating it. In our opinion, Vertical Net, Inc., has an excellent strategy for providing business-to-business content and service over the Internet and with Microsoft Corporation as one of its strategic partners this Company could continue to expand at a fast pace. If this stock were to fall to approximately $35 per share and then ascend to $140 per share, it could provide speculators with a short-term gain of 300 percent. On July 31, this stock closed at $47 3/4 per share. Once again, the risk of owning the shares of this Internet B2B start up is high; therefore this stock could only be bought by speculators (price $ 47 3/4, dividend Nil, and P/E nm). Visit company’s Website at www.verticalnet.com Via Sat, Inc. (NASDAQ symbol: VSAT) specializes in satellite and other wireless networking technologies. The Company designs and manufactures satellite networks for government and commercial markets. Furthermore, the Company makes terminals for battlefield data collection and distribution, data encryption devices, networking hardware and software. As of March 31, 1999, there were 8 million shares outstanding. The Company had another great year. For fiscal 1999, ended March 31, 1999, annual revenues rose to $71.5 million from $64.2 million for fiscal 1998. Net income rose to $6.3 million, or $0.77 a share, from $5.3 million, or $0.65 a share for fiscal 1998. As of March 31, 1999, cash and short-term investments totaled $20.8 million, up from $9.2 million in fiscal 1998. Long-term debt fell to $1.243 million, from $1.544 million in fiscal 1998. The Company won a $5 million order from Elmer/Marconi for UHF satellite network contract. In fiscal 1999 the Company proceeded to expand its market share in the Multifunctional Information Distribution System (MIDS) market. Its latest unit, MIDS LVT terminal is smaller than previous terminals, yet it achieves a high performance level in gathering and displaying simulated battlefield data. These MIDS terminals are communication devices planned for worldwide use by U.S. and allied forces. MIDS terminals transmit voice and data between airplanes, ships, vehicles and fixed locations, and provide an integrated view of the battlefield. Via Sat, Inc., generates substantial revenue from R & D projects for the Department of Defense. The Company retains commercial rights to the technology it develops for seven years, which in turn could generate tens of millions in additional revenue. During the past five years, the revenue grew at a fast pace and more than tripled from $22.3 million in fiscal 1995, while net income has risen five-fold. During fiscal 1995, this stock proceeded to ascend at a fast pace from a 52-week low of $13 5/16 to a 52-week high of $105 per share. At its peak, this stock was trading at 100 times earnings, which is extremely high. Perhaps the stock was bid-up in anticipation of future orders from Defense Department. If these orders do not materialize, investors might sell this stock in droves and it could fall below $25 per share during the next five months. Although long-term this stock could once again reach $100 per level, investors who bought it below $38 per share in the past three months should sell it now. On July 31, this stock closed at $49 1/2 per share and we rate it sell (price $49 1/2, dividend Nil, and P/E 53). Teleflex Inc. (NYSE symbol: TFX) designs and manufactures automotive products such as transmission gearshift systems; mechanical and electronic throttle systems and various precision stampings. The Company’s marine division designs and manufactures steering systems, electrical gauges, GPS navigation systems, underwater camera systems and electronic fish finders, while its aerospace division is a leading supplier of precision components and also provides specialized repairs to the aerospace sector. In addition, the Company also sells surgical products and services to hospitals and surgery centers. The Company has over 80 plants worldwide and employs 14,000 people. Sales outside of the United States generate approximately 40 percent of annual revenues. There are 37.8 million shares outstanding. The Company had another great year. For 1999 revenues rose to $1.6 billion an increase of 11% from $1.44 billion for 1998. Net income rose to $95.22 million, or $2.47 a share, from $82.55 million, or $2.15 a share for 1998. Book value rose to $15.85 a share from $14.21 a share in 1998. In 1999, the Company generated over $130 million of cash from operations. The Company’s research and development department continues to design innovative products. An excellent example is the adjustable pedal system that is designed to increase comfort and safety for the drivers. The system allows the driver to move pedal controls forward or back, with a push of a button. This allows drivers to position themselves at the safest and most comfortable distance from the steering wheel of the vehicle. Ford Motor Company introduced it as an option on selected 1999 models. Due to the strong demand for this option, Teleflex Inc., had to increase annual production to 1.5 million units from an initial order of 40,000 units. Teleflex Inc. continues to expand through internal growth and by acquisitions. Annual revenues have grown from $31 million in 1974 to $1.6 billion in 1999. Although this stock could be bought and held long-term by patient investors, speculators could achieve better return by holding these timely shares short-term. After falling to $26 1/8 per share in February 2000, the stock proceeded to ascend and closed at $36 1/4 per share on July 31, 2000. As the orders for the adjustable pedal system continue to grow, the earnings could accelerate to double digits and this stock could revisit its 52-week high of $50 7/16 per share during the next five months, thus rewarding speculators with a short-term gain of approximately 40 percent. We rate this stock a short-term buy (price $36 1/4, annual dividend $0.60, yield 1.7%, and P/E 14). Back to Top |
|
Stocks for traders Speculators who like to trade frequently could buy stocks listed in this section. Investors should be aware that short-term trading involves much greater risk, and preferably no more than 10% of the portfolio may be invested in these stocks. Many of the stocks in the technology sector should be bought at recent low levels. Speculators could achieve short-term gains, up to 100% on some of these stocks. Computer Associates International, Inc. (NYSE symbol: CA) designs business application software and systems management software that allows computers to run efficiently. In addition, the Company provides software that allows corporations to manage Web infrastructure. The Company is the third largest after Microsoft Corporation and Oracle Corporation. Computer Associates International has offices in 44 countries. As of March 31, 2000, there were 557 million shares outstanding. For the fiscal 2000, ended March 31, 2000, revenues rose to $6.1 billion, from $4.666 billion for fiscal 1999. Net income rose to $696 million, or $1.25 a share, from $626 million, or $1.11 a share for fiscal 1999. The Company took a charge of $800 million for purchased research and development. In our opinion, without this charge earnings could have been as high as $2.68 a share. Computer Associates International acquired Platinum Technology International for $3.5 billion in cash. The Company also acquired Sterling Software, Inc. As of March 31, 2000, total outstanding debt reached $5.4 billion. During fiscal 2000, the Company generated $1.566 billion of cash from operations and in our opinion it is sufficient to cover the repayment of debt. In our opinion, the short-term and the long-term outlook for the Company is very good. As the debt level falls earnings could reach $2.50 a share for fiscal 2002, thus propelling the stock to a probable level of approximately $98 per share. After reaching a 52-week high of $79 7/16 in January 2000, the stock proceeded to descend and closed at $24 13/16 on July 31, 2000. In our opinion, short-term, this timely stock has potential to revisit its recent 52-week high. Investors who buy this stock now could achieve a short-term gain as high as 200 percent (price $24 13/16, annual dividend $0.8, yield 0.3%, and P/E 11 ). Unisys Corporation (NYSE symbol: UIS) is a major provider of customer services and information services. The Company makes network servers and software. After going through three consecutive years of losses, the Company finally turned profitable in fiscal 1998. For 1998, the Company reported earnings of $1.06 a share, versus a loss of $4.70 a share for fiscal 1997. When Lawrence A. Weinbach was elected CEO in 1997, he proceeded to make major changes. His initial plan was to cut $1 billion of debt from the Company’s balance sheet. The Company has achieved this goal and the long-term debt fell to $1.2 billion by December of 1998, down from the previous high level of $2.3 billion in 1996. This action alone could reduce the Company’s annual interest expense by more than $110 million. Unisys derives 67 percent of revenues from services, where profit margins are much higher than margins on hardware. The Company projects that in a few years services business could generate approximately 75 percent of annual revenues. In September of 1999, the stock reached a 52-week high of $49 11/16 and then during the following months fell below $25 per share. In February 2000, the stock proceeded to revisit its high, but due to strong resistance at $35 level proceeded to descend once again. Due to the sell-off in the tech sector, this stock continued to descend in July and fell below $10 per share, down 80 percent from its 52-week high. This stock could retest its recent high, but in our opinion will find strong resistance at $20 level. Nevertheless, if this were to happen, it could provide speculators with a short-term gain of approximately $10 per share, or 100 percent, during the next three months. On the other hand, patient investors could buy this stock now and hold until it revisits its previous 52-week high of $49 11/16 per share. As the services business continues to grow, profit margins could accelerate and the earnings for the year 2001 could rise above $2 a share, the stock could break through the previous 52-week high and provide investors with a probable gain of $40 per share, or 300 percent in one year. This stock was included in our list in July 2000. Since then the stock fell an additional five points and on July 31 closed at $9 13/16 per share. At this price level we rate this stock a screaming long-term buy. Investors who already own this stock could add to their position. People Soft Inc. (NASDAQ symbol: PSFT) designs and distributes enterprise resource planning software for large and medium size companies. The latest software can even manage payroll, benefits administration, pension administration, and scheduling. After closing at $18 13/16 on November 30, 1999, this stock proceeded in the upward direction and on January 14, 2000, reached an intra-day high of $27 ¾ per share. Then, the stock pulled back to $21 1/8 per share on January 28, 2000. On March 31, the stock of this enterprise resource planning software maker closed at $20 per share. On March 31, we have stated, “There is a probability that this stock has already reached its top and could proceed in a downward direction. Speculators should sell this stock and use the proceeds to buy shares of Boston Scientific Corporation.” (On March 31, 2000, Boston Scientific Corporation, NYSE symbol BSX, closed at $21 5/16 and we rated it a screaming buy). In April, the stock of People Soft, Inc. proceeded to fall, and then closed at $13 13/16 per share on May 31. On July 31, this stock closed at $21 13/16 per share. Although there is a probability that this stock could reach a higher level, speculators who bought it in June below $15 per share should sell it now to lock in their short-term gain of 40 percent. Maxtor Corporation (NASDAQ symbol: MXTR) manufactures and markets disk drives for personal computers. The company sells its products to Original Equipment Manufacturers, distributors and retailers. For the fiscal 1999, ended January 1, 2000, revenues rose to $2.486 billion, from $2.409 billion for fiscal 1998. The Company reported a loss of $50.1 million, or $0.48 a share for fiscal 1999, versus a net income of $31.2 million, or $0.47 a share for fiscal 1998. Maxtor Corporation has tremendously improved its financial position, and as of January 1, 2000, total stockholders equity stood at $255.3 million, versus a deficit of $327.5 million for fiscal 1996. At the end of the year, the Company had $353.9 million of cash and marketable securities, versus $227.6 million in the previous year. This stock reached a high of $21 ¼ in January of 1999. Afterwards, due to the oversupply of disk drives and price competition, the stock proceeded in the downward direction and fell to a low level of $4 15/16 on August 12, 1999. This stock closed at $6 1/16 per share on November 30, 1999, and we started recommending it to speculators in December. At that time we stated that this stock could reach $15 per share. After reaching an intra-day high of $8 5/16 on January 27, 2000, the stock pulled back and closed at $6 ¼ per share on February 22, 2000. This stock closed at $14 11/16 per share on March 27, 2000. Due to the sell-off in the technology sector, this stock broke through its support level of $10 and closed at $6 11/16 per share on July 26, on a very heavy volume of 11.1 million shares. We are maintaining our target level of $16 per share for this stock, but due to the recent negative outlook for this sector, it could take six months for this stock to reach such level. On July 31, this stock closed at $5 13/16 and at this level we rate it a strong buy. Boston Scientific Corporation (NYSE symbol: BSX) is one of the worlds leading companies that designs and markets minimally invasive medical devices. The company makes coronary stents for less invasive treatment of cardiovascular disease. The stock has reached a 52-week high of $47 1/16 on July 19, 1999. Afterwards, the stock proceeded to fall at a fast pace and by October 1999, fell to an intra-day low of $17 9/16 per share. Afterwards, the stock proceeded in the upward direction and reached an intra-day high of $25 7/8 in January. br> The stock tested its bottom again and closed at $17 7/8 per share on February 25, 2000. Afterwards, the stock proceeded in the upward direction and on April 19, 2000, broke through the $25 resistance level, finishing the day at $25 ¼ per share. During the recent correction the stock fell and closed at $16 9/16 per share on July 31. This is the third time the stock tested its bottom. We have revised our short-term target level from $37 per share, to $32 per share. At the recent price level, we maintain our rating of screaming buy. This stock could reach $32 per share during the next four months. At that price level, the stock should be sold immediately. TJX Companies, Inc. (NYSE symbol: TJX) is the leading off-price retailer of apparel and home fashions. The Company operates T.J.Maxx ® stores, Marshalls ®, and A.J.Wright off-price retail stores in the United States. In Canada, the Company operates Winners Apparel Ltd. and in United Kingdom T.K. Maxx ™ off-price apparel stores. For the fiscal 1998, that ended January 30, 1999, revenues rose to $7.95 billion, from $7.39 billion for fiscal 1997. Net income rose to $424 million, or $1.29 a share, from $305 million, or $0.91 a share for fiscal 1997. As of January 30, 1999, there were 334.6 million shares outstanding, versus 349.6 million shares a year earlier. After completing a $250 million stock repurchase program, the Company announced in October 1998, that it plans to repurchase $750 million of its common stock over several years. The Company has repurchased 17.6 million shares at a cost of $501.1 million by October 30, 1999. All share repurchases were funded by internal cash flow. TJX Companies, Inc., plans to open over 150 new stores during the next three years. The Company’s annual report states “_ _ _ we continue to be confident in our ability to grow earnings per share by 15-20%.” The stock reached a 52-week high of $37 per share in April 1999, and then proceeded to fall and closed at $15 per share on March 13, 2000. Afterwards, this stock proceeded to build upward momentum and closed at $22 1/4 on March 31. In April, we recommended that speculators monitor this stock closely and buy it when it pulls back to $18 per share. This stock closed at $18 per share on May 11, 2000. Then, the stock resumed its upward trend and closed at $21 5/8 per share on May 31. On July 31, this stock closed at $16 ¾ per share and we rate it a strong buy. This stock could reach approximately $27 per share during the next four months. Once the stock reaches this level, it should be sold, for a probable short-term gain of approximately 60 percent. Callaway Golf Company (NYSE symbol: ELY) designs and manufactures premium golf clubs. On April 28, 2000, this stock closed at $16 5/8 per share and at this price level we rated it a strong buy. The stock proceeded to rise and closed at $20 9/16 per share on May 12. Afterwards, this stock proceeded to pull back, and on May 31, closed at $18 1/8 per share, on a very low volume of 209 thousand shares. Due to the recent sell-off, the stock fell and closed at $12 1/2 on July 31. At this level, we rate this stock a screaming buy. As the volume grows and the stock builds upward momentum, it could reach approximately $29 per share during the next eight months. If the stock were to reach this level, it should be sold immediately. Milacron Inc. (NYSE symbol: MZ) is a major supplier of machine tools, mold bases, plastics machinery and grinding wheels. Milacron Inc. employs 13,000 people in 30 plants worldwide. After reaching a low of $14 ½ per share, the stock proceeded to ascend and rose to $23 3/16 in June 1999. This stock proceeded to build a strong upward momentum and on April 28, 2000, closed at $18 1/4 per share. Afterwards, the stock proceeded to pull back and closed at $14 3/8 per share on July 31. Due to the recent negative outlook for this sector, we are removing this stock from the list. Speculators who own this stock could switch and buy Unisys Corporation (NYSE symbol: UIS). Western Digital Corporation (NYSE symbol: WDC) is a major manufacturer of hard disk drives that are used in variety of computers. During the years of 1996 and 1997 the stock had appreciated at a fast pace and rose from $8 1/8 to $54 ¾ per share. Due to the manufacturing overcapacity and intense competition, the stock of Western Digital proceeded in a downward direction in September 1997, and reached a bottom by the end of 1999. That was then. Now, as the sales of computers continue to grow 20 percent worldwide, the demand has caught up with capacity and the prices for hard disk drives have firmed. On July 31, this stock closed at $4 1/8 per share. Although we recently rated this stock a strong buy, we are removing it from our list. Due to the better outlook for the stock of Maxtor Corporation (NASDAQ symbol: MXTR) speculators should switch. Sell WDC and buy MXTR. Quantum Corporation is a major manufacturer of hard drives for systems ranging from personal computers to servers. The company also makes tape drives, and solid-state disk drives. The stock was previously listed on NASDAQ under the symbol: QNTM. The management of Quantum Corporation has decided to issue two tracking stocks, the Hard Disk Drive (symbol: HDD) and the Storage Systems Group (symbol: DSS). Both stocks trade on NYSE. On July 31, Quantum HDD closed at $8 1/4 per share, while Quantum DSS closed at $11 3/4 per share. We maintain our buy rating on both stocks. In our opinion, the stock of Storage Systems Group could double during the next twelve months. The stock of the Hard Disk Drive division could reach $17 during the next six months and it should be sold immediately at that level. Bank One Corporation (NYSE symbol: ONE) is among the largest bank holding companies in the United States. Due to the losses in its credit card division, earnings fell and the stock reached a low of $24 7/16 per share on March 7, 2000, after reaching a 52-week high of $63 9/16 in May of 1999. After Bank One announced that James Dimon, formerly of Citigroup Inc., would become its CEO, the stock closed at $34 ¼, up $3 3/8 on March 28, 2000. In April we stated that this stock could pull back to approximately $28 per share and speculators could start accumulating it at that level. On May 8, the stock of Bank One Corporation reached an intra-day low of $28 ¾ and then resumed its upward momentum. During the recent sell-off, this stock was very resilient and closed at $31 13/16 on July 31. We maintain a long-term buy rating on this stock. James Dimon could turn this bank holding company around, and perhaps a year from now this stock could reach approximately $50 per share. Once this stock reaches our target level, speculators should sell it immediately, to lock in a gain of approximately 70 percent. Back to Top |
|
Model Portfolio Applied Materials, Inc. (NASDAQ symbol: AMAT) is a major supplier of wafer processing equipment that is used to produce semiconductors. The Company produces systems that use physical vapor deposition technology, chemical vapor deposition and oxide etching. For the fiscal year ended October 31, 1999, revenues rose to $4.86 billion, a 20 percent increase from $4.04 billion for fiscal 1998. Net income rose to $748 million, or $1.89 a share, from $417 million, or $1.10 a share for fiscal 1998. The demand for the company’s equipment continues to accelerate in line with the growing sales of computers and telecommunication devices. Applied Materials estimates that the market for wafer fabricating equipment could double in three years to $43 billion annually. The long-term outlook for the Company is excellent. On October 14, 1997, and on March 16, 2000, Applied Materials split its stock 2-for-1. On July 31, this stock closed at $75 7/8 per share. Buy this stock and hold long-term. Boston Scientific Corporation (NYSE symbol: BSX) is one of the worlds leading companies that designs and markets minimally invasive medical devices. The Company makes coronary stents for less invasive treatment of cardiovascular disease. This stock has reached a high of $47 1/16 per share on July 19, 1999. A month later, the stock proceeded to fall at a very fast pace and by October 1999, fell to an intra-day low of $17 9/16 per share. Afterwards, this stock proceeded in the upward direction and reached an intra-day high of $25 7/8 in January 2000. The stock tested its bottom again, and closed at $17 7/8 per share on February 25, 2000. On June 30, this stock closed at $21 15/16 per share and then proceeded to descend. This stock closed at $16 9/16 per share on July 31 and we maintain our rating of screaming buy. That was the third time that the stock has tested its bottom. We have revised our short-term target level from $37 per share, to $32 per share. Our objective is to hold this stock short-term. Monitor this stock very closely and as soon as it reaches $32 per share, sell it immediately. Cisco Systems, Inc. (NASDAQ symbol: CSCO) makes data networking equipment, data switches, and networking gear. For fiscal 1999, that ended July 31, revenues rose to $12.2 billion, a 43% increase from $8.5 billion for fiscal 1998. Net income rose to $2.096 billion, or $0.62 a share, from $1.355 billion, or $0.42 a share for fiscal 1998. Cisco Systems continues to expand its market share. The annual revenues have grown from $2.2 billion in fiscal 1995, to $12.2 billion in fiscal 1999. John T. Chambers, who is a CEO of Cisco Systems, continues to steer the company on a path to high growth. Since 1994 the stock of Cisco Systems, Inc. has risen twenty-fold and the long-term outlook for the company is excellent. In our opinion, Cisco Systems, Inc. could continue its acquisition spree and the annual revenues might reach $50 billion in six years. Cisco Systems, Inc., is positioned to offer the latest equipment to service providers, such as IP internetworking technology which allows to host Internet applications and expand their service from basic voice traffic to broadband which can carry data, provide Internet access, and video conferencing. On March 23, 2000, this stock split 2-for-1. On July 31, this timely stock closed at $65 7/16 per share. Buy this stock now and hold at least ten years. Compaq Computer Corp (NYSE symbol: CPQ) is the second largest computer manufacturer in the world. The Company designs and makes notebook personal computers, servers, consumer PCs and networking equipment. For the fourth-quarter, revenues edged lower, to $10.6 billion, from $10.9 billion for the same quarter in 1998. The turnaround is taking longer than expected. Although revenues continue to grow, the earnings are still below the levels reached two years ago, therefore we recommend this stock to patient investors who are willing to hold it at least five years. The Company has efficient manufacturing operation and manages to turn over its inventory of PCs eleven times per year. Compaq sold 83% of interest in Alta Vista Web site to CMGI Inc. Compaq retained 17% equity in the Alta Vista. Both companies will promote this site. In the future it could become one of the top five sites and generate substantial amount of revenues. This stock has a strong potential to gain 500% in five years. On July 31, this stock closed at $28 1/16 per share and we rate it a long-term buy. Compuware Corporation (NASDAQ symbol: CPWR) makes software that manages corporate networks, and improves productivity. The revenues are growing at a fast pace, and for the fiscal 1999, reached $1.65 billion. The stock of Compuware Corporation reached $40 per share in December 1999. On March 31, we stated that there is a probability that this stock could fall to $16 per share during the next three months. When this stock fell below $13 per share, an additional 200 shares were bought at $12 3/8 on April 14, 2000. Due to the negative sentiment for this sector, we have revised our short-term target level to $28 per share, from $35 per share. Once this stock reaches our revised target level, these two hundred shares will be sold immediately. The remaining 150 shares will be held long-term, at least three years. Delias, Inc. (NASDAQ symbol: DLIA) sells a variety of apparel and accessories for young women. The Company conducts sales through its Web site and through brick and mortar stores. This stock reached a 52-week high of $40 per share in April 1999, and then proceeded to fall along with other Internet stocks. By November 1999, this stock reached a low of $5 ½ per share. Afterwards, the stock proceeded to rise, buoyed by optimistic expectations of higher holiday sales and reached an intra-day high of $13 ¼ per share in November 1999. On July 31, this stock closed at $2 7/8 per share. This stock will be held in the Model Portfolio until it reaches our revised target level of $25 per share and then all of 200 shares will be sold. Dell Computer Corporation (NASDAQ symbol: DELL) is the third largest computer manufacturer in the world. The Company makes personal computers, notebook computers, servers and workstations. For the fiscal year ended January 29, 1999, revenue rose to $18.2 billion, a 48% increase from $12.3 billion for fiscal 1998. Earnings rose to $1.05 a share, from $0.64 a share for fiscal 1998. On March 5, 1999, the Company has issued a 2-for-1 stock split, the seventh in the past seven years. During the past twelve months the price of the stock has almost stood still compared to the previous years. On March 22 the stock reached an intra-day high of $59 11/16 per share. Then, the stock proceeded to pull back. During summer, sales of computers are slower than at other time of the year. The sales should start rising in September and the stock could reach a new high of $65 per share before the end of this year. Although it is not likely that the stock of Dell Computer will appreciate at such a fast pace as it did during the past five years, in our opinion, the stock could generate a gain of 1,200% in six years. This stock closed at $43 15/16 per share on July 31, 2000. Although there is a probability that this stock could fall below $40 per share, at this price level we rate this stock a strong buy. Patient investors should hold this stock long-term, at least five years. Ericsson LM Telephone (NASDAQ symbol: ERICY) is a leading supplier of mobile phones and telecommunications equipment. The Company’s main manufacturing facilities are located in Sweden. Ericsson’s telecom equipment is among the most advanced in the world. The sales of equipment have increased significantly in China and surpassed the sales in U.S. Ericsson LM Telephone projects that by the year 2003 the number of mobile phone users could rise to over 800 million. The long-term outlook for Ericsson is excellent. ADR’s of Ericsson split 4-for-1 on May 8, 2000. On July 31, ADR’s closed at $19 5/8. Buy these ADR’s now and hold long-term. Intel Corporation (NASDAQ symbol: INTC) is the leading manufacturer of microprocessors. The Company has high name recognition, and still has approximately 85% share of the market. For 1999, revenues rose to $29.4 billion, from $26.3 billion for 1998. Net income rose to $7.3 billion, or $2.11 a share, from $6.1 billion, or $1.73 a share for 1998. The Company continues to switch production to 0.18 micron manufacturing process that yields more semiconductors from each wafer. As the sales of cellular phones continue to grow, the demand for chips made by Intel could accelerate throughout the year 2000. During the past ten years earnings grew 32% annually. The stock of Intel Corporation has kept rising ever since 30 shares were bought in March of 1995, at $78 ¼ per share. The Company issued a 100% stock dividend on June 22, 1995, another one on July 14, 1997, a 2-for-1 stock split on April 11, 1999, and another 2-for-1 split on July 30. Since the original 30 shares were bought, after the stock splits there are 480 shares in the portfolio. During the past three months this stock has build a strong upward momentum. On July 31, this stock closed at $66 3/4 per share. Buy this stock on dips and hold long-term. Lucent Technologies, Inc., (NYSE symbol: LU) is the largest manufacturer of the telecommunications equipment. Lucent Technologies makes fiber-optic equipment and optical network equipment that allows the phone companies to increase the capacity and to provide a high speed Internet access. During the year of 1999, the stock continued its strong upward momentum and reached a 52-week high of $84 3/16 per share in December. Then, in January 2000, the stock fell at an extremely fast pace and closed at a 52-week low of $49 13/16 per share. Afterwards, the stock proceeded to ascend and reached an intra-day high of $75 3/8 per share on March 1, 2000. During the recent correction, the stock tested its bottom again. As the telecommunications providers acquire new equipment, the annual revenues could grow in double digits and may reach $80 billion in five years, a double from present annual revenues. The stock trades at 41 times earnings, and due to the potential double-digit growth of revenues, such P/E ratio is justifiable. In our opinion, the long-term outlook for the Company is excellent. The stock of Lucent Technologies, Inc., will be held in the Model Portfolio at least ten years. On July 31, the stock closed at $43 5/8 per share. At this level we rate this stock a screaming long-term buy. Merck & Co., Inc. (NYSE symbol: MRK) manufactures a variety of pharmaceutical products. Major brand names include Vasotec, Mevacor, Zocor, Crixivan, and Propecia. The Company derives 34 percent of revenues from international sales. Merck continues to spend substantial percentage of gross revenues, on research and development. Merck & Co. split its stock 2-for-1 on February 17, 1999, and now there are one hundred shares in the Model Portfolio. On July 31, this stock closed at $71 7/16 per share. Buy this stock and hold long-term. Microsoft Corporation (NASDAQ symbol: MSFT) is the largest maker of software. The operating system made by Microsoft is used in the majority of computers. The Company has no debt and has approximately $17 billion in cash and short- term investments. For fiscal 1999, ended June 30, 1999, revenues rose to $19.747 billion, from $15.262 billion for fiscal 1998. Net income rose to $7.785 billion, or $1.42 a share, from $4.490 billion, or $0.84 a share for fiscal 1998. Stockholders equity rose to $28.438 billion from $16.627 billion for fiscal 1998. On March 29, 1999, the Company issued a 2-for-1 stock split. The anti-trust trial continues to affect the stock negatively. While the Justice Department accused Microsoft Corporation of wielding a monopoly power, the company denied any wrongdoing. Is the break-up of Microsoft Corporation the only solution? Of course not. As soon as this chapter in Microsoft’s history is closed, the stock could resume its strong upward momentum, but in the meantime this stock will be very volatile. Although these timely shares may not appreciate at previous fast pace, this stock could generate a gain of 700% in six years. The stock will be held long-term, at least five years. On July 31, this stock closed at $69 13/16 per share. At this price level we rate this stock a strong buy. Investors, who already own this stock, could add to their position. Nokia Corporation (NYSE symbol: NOK) is the world’s second largest manufacturer of mobile phones. The Company is located in Finland, with subsidiaries in the United Kingdom and China. Nokia derives 56% of its revenues from sales in Europe and 44% from sales in other continents. The long-term outlook for Nokia is excellent as the demand for company’s products grows worldwide. The Company issued a 2-for-1 split on April 16, 1998, one on April 11, 1999, and a 4-for-1 split on April10, 2000. Recently these ADRs edged lower and closed at $44 1/8 on July 31. Buy and hold long-term. Office Depot, Inc. (NYSE symbol: ODP) is a major retailer of office products, with stores located in the United States and Canada. The Company also conducts sales through its Web site at www.officedepot.com and through a catalog. For the year of 1999, revenues rose to $10.27 billion, from $9 billion for 1998. Earnings rose to $0.69 a share, from $0.60 a share for 1998. On April 12, 2000, the stock rose to $14 3/16 per share on a heavy volume of 4.45 million shares, and then proceeded to fall. Four weeks later, on May 12, the stock closed at $11 per share, on a low volume of 688,000 shares. Then, on May 26, the stock fell $3 from the previous close, and finished the day at $7 5/16 per share, on a very heavy volume of 16 million shares. In our opinion, this stock is oversold. On July 31, the stock closed at $6 1/4 per share. This stock is down 73 percent, from its 52-week high of $23 13/16 per share. The stock is trading at eight times earnings, and at this low level we rate this stock a screaming buy. The sell-off in this stock was overdone. This stock will be held in the Model Portfolio until it reaches our target level of $19 per share, and then all four hundred shares will be sold, for a probable long-term gain of 200 percent. PepsiCo, Inc. (NYSE symbol: PEP) makes soft drinks, Doritos, Sun Chips, Ruffles potato chips and Lays potato chips. For 1999, revenues edged lower to $20.4 billion, from $22.3 billion for 1998. Net income rose to $2 billion, or $1.37 a share from $1.99 billion, or $1.31 a share for 1998. In 1998, PepsiCo acquired Tropicana and several snack chip businesses in Europe, Australia and Chile. In the past forty years, PepsiCo sales grew an average of 16% per year. After the Company had spun-off its restaurants in 1997, the return on assets deployed rose from 9.5% in 1996, to 16.2% in 1997. PepsiCo continues to buy back its stock. Recently, this stock proceeded to ascend and closed at $45 13/16 on July 31. As some investors take their profits in their tech-stocks and switch into old economy stocks, the shares of PepsiCo could proceed in the upward direction. Buy on dips and hold long-term. Pfizer, Inc. (NYSE symbol: PFE) is a diversified manufacturer of pharmaceuticals and consumer products. Among its brand name pharmaceutical products is Norvasc for hypertension and Zoloff for depression. The latest addition is Viagra, a pill for erectile dysfunction. For 1999, revenues rose to $16.2 billion, up 20 percent from $13.54 billion for 1998. Net income edged lower, to $3.18 billion, or 82 cents a share, from $3.35 billion, or 85 cents a share for 1998. All data is adjusted for the 3-for-1 stock split issued on June 30, 1999. Recently, Warner-Lambert agreed to be acquired by Pfizer, Inc. The shareholders will receive 2.75 shares of Pfizer stock for each share of Warner-Lambert stock. The deal is valued at $85 billion. After the merger is completed, Pfizer, Inc., will become a pharmaceutical behemoth with extensive R & D department. The long-term outlook for the Company is excellent. On July 31, this stock closed at $43 per share. Buy this stock on dips and hold long-term. Sara Lee Corp. (NYSE symbol: SLE) is an international producer of frozen and fresh baked goods, meats and consumer products. Revenues remained flat for fiscal 1999, at $20 billion, unchanged from fiscal 1998. For fiscal 1999, company reported earnings of $1.27 a share, versus a loss of $0.60 a share for fiscal 1998. Fiscal 1998 was affected negatively by a restructuring charge of $2 billion. Sara Lee split its stock 2-for-1 on December 21, 1998. Recently this stock fell to a 52-week low of $13 5/8 per share on March 7. On July 31, this stock closed at $18 7/16 per share and we rate it a strong buy. Xerox Corporation (NYSE symbol: XRX) is the worlds largest maker of copier equipment, digital monochrome and color publishing equipment. The Company sells its products and provides services in more than 170 countries. For the year of 1998, revenues rose to $19.4 billion, and 62 percent came from service, supplies, financing, and other recurring revenues. The company’s annual report states that $100 invested in Xerox stock at the end of 1990, grew to $1,266 by the end of 1998. The stock is trading at a low P/E ratio, and is down 66 percent from its 52-week high of $63 15/16 per share. One hundred shares of Xerox Corporation will be sold as soon as the stock reaches $60 per share and the remaining 100 shares will be held long-term, at least five years. On July 26 the Company issued earnings for the quarter ended June 30. Earnings were lower than expected and the stock closed at $15 per share, down $3 3/16. On July 31, this stock closed at $15 1/16 per share. In our opinion, this blue chip stock is oversold. At the recent price level we rate this stock a screaming buy. Investors who already own this stock could add to their position. Back to Top |
|
Model Portfolio Update Compuware Corporation (NASDAQ symbol: CPWR) makes software that manages corporate networks and improves productivity. The Company offers over 130 different products for various operating systems. Compuware Corporation is among the largest software vendors in the world. The Company has 120 offices located in 46 countries. For the fiscal 2000, ended March 31, 2000, revenues rose to $2.231 billion, from $1.638 billion for fiscal 1999. Net income rose to $352 million, or $0.91 a share, from $349.9 million, or $0.87 a share for fiscal 1999. As of March 31, 2000, the Company had $391.8 million of working capital versus $550.59 million a year earlier. Total shareholder equity rose to $1.2 billion from $1.08 billion as of March 1999. Due to the acquisitions, long-term debt rose to $450 million. During fiscal 2000 the Company repurchased $348 million of its common stock. Although the revenues reached $2.231 billion for fiscal 2000, an increase of 36.1 percent from the previous year, due to the lower earnings projections for fiscal 2001, the stock was sold off and reached an intra-day low of $7 ¾ per share on July 24, 2000. The last time this stock was trading at such a low level was five years ago. The earnings did not meet analysts’ expectations, furthermore, in July many stocks in this sector were sold off. In our opinion this is a short-term event. During the past five years annual revenues have risen from $614.359 million for fiscal 1996, to $2.231 billion for fiscal 2000. The net income has grown almost fivefold from $77.6 million in fiscal 1996. In January 2000, one hundred and fifty shares of Compuware Corporation were bought at $21 1/16 per share and added to the Model Portfolio, to be held long-term, at least three years. Then, when the stock fell to a lower level, an additional 200 shares were bought at $12 3/8 on April 14, 2000. These 200 shares will be held short-term and as soon as the stock reaches our revised target level of $28 per share, all of 200 shares will be sold. On July 31, the stock closed at $8 per share and we rate it a screaming buy. Nokia Corporation (NYSE symbol: NOK) reported pre tax net of 1.4 billion euros. The results exceeded analysts’ expectations but due to the concerns about the near term unit sales growth the stock was sold-off. On July 27, Nokia fell $13 ¾, to $41 ¼. In our opinion these fears are unjustified. As the access fees for cellular phones continue to fall, millions of people worldwide will buy a cellular phone. Furthermore, present owners of cellular phones will upgrade to newer units that will allow the user to access the Internet and trade securities, thus increasing the overall sales. In our opinion, the long-term outlook for the Company is excellent. On July 31, ADRs of Nokia closed at $44 1/8 and at this price level we rate it a strong buy. Xerox Corporation (NYSE symbol: XRX) reported earnings on July 26, 2000. For the quarter ended June 30, revenue edged lower, to $4.69 billion, from $4.86 billion for the same quarter a year ago. Net income fell to $145 million, or $0.19 a share, from $448 million, or $0.62 a share for the quarter ended June 1999. The earnings for the recent quarter were lower do to special charges. After the Company reported earnings that were lower than expected, the stock immediately fell $3 3/16 and closed at $15 per share. At this level, the stock is down 70 percent from its 52-week high. In our opinion, it could take a while until the earnings of this huge behemoth improve. Furthermore, it might take a year, or two until this stock revisits its recent 52-week high. We maintain our long-term target of $60 per share. There are two hundred shares of Xerox Corporation in the Model Portfolio. One hundred shares will be sold as soon as the stock reaches our target level of $60 per share. The remaining 100 shares will be held long-term, at least five years. On July 31, the stock closed at $15 1/16 per share and we rate it a screaming buy. Back to Top |
|
Model Portfolio Chart 7-31-2000
a) The quantity of shares was adjusted for a 100% stock dividend issued by Intel Corporation on June 22, 1995, a 2-for-1 stock split issued on July 14, 1997, a 2-for-1 stock split issued on April 11, 1999 and a 2-for-1 stock split issued on July 30, 2000. b) The quantity of shares was adjusted for a 100% stock dividend issued by PepsiCo, Inc. on June 3rd, 1996. c) The quantity of shares was adjusted for a 100% stock dividend issued by Applied Materials, Inc. on October 14, 1997 and a 2-for-1 stock split issued on March 16, 2000. d) The quantity of ADR’s was adjusted for a 2-for-1 split issued by Nokia Corporation on April 16, 1998, a 2-for-1 split issued on April 11, 1999, and a 4-for-1 split issued on April 10, 2000. e) The quantity of ADR’s was adjusted for a 2-for-1 split issued by Ericsson Telephone on May 22, 1998, and a 4-for-1 split issued on May 8, 2000. f) The quantity of shares was adjusted for a 2-for-1 stock split issued by Sara Lee Corporation on December 21, 1998. g) The quantity of shares was adjusted for a 2-for-1 stock split issued by Merck & Co. Inc. on February 17,1999. h) The quantity of shares was adjusted for a 2-for-1 stock split issued by Microsoft Corporation on March 26, 1999. i) The quantity of shares was adjusted for a 3-for-1 stock split issued by Pfizer on June 30, 1999. j) The quantity of shares was adjusted for a 2-for-1 stock split issued by Cisco Systems, Inc. on March 23, 2000. Between April 1994 and July 1998, a total of $28,336 of cash was invested in the Model Portfolio. Due to the excellent performance of the technology stocks, over the course of six years the total value of the portfolio has risen to $145,374 as of June 30, 2000. Our Model Portfolio has generated a gain of $117,038, or 413 percent in just six years. Investors who are just starting out should not be deterred by the size of our Model Portfolio. Notice that a total of $28,336 was invested over the course of four years, averaging an investment of $7,000 per year. Investors who are just starting out could invest as little as $2,000 each year, but be consistent and invest that amount every year. After several years, investor could have a portfolio consisting of several blue-chip stocks. Back to Top |