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Today's stock picks
come from Carl Birkelbach, Chairman and
CEO for Birkelbach Investment Securities,
Inc.
Mr. Birkelbach's recommendations
are:
After going up for nine straight
months, the stock market has finally met some
resistance at the same levels it had trouble
breaking above in 2002. Some favorites like
SanDisk, which rose from $20 to $86 and is now
at about $50, make investors concerned about
another high tech bubble. These factors and
others have investors searching for new
leadership. As in my Dec. 15 Noon Business Hour
stock picks, I suggest some Japanese stocks as
an alternative: Sony (SNE), then $33, now
$40, and Mitsubishi Tokyo Financial
(MTF), then $7, now $7.50.
Another group
that appears to be emerging into investor favor
are energy companies.
Global Santa Fe
Corp. (GSF): This oil and gas drilling
company is the result of a merger between Global
Marine and Santa Fe International. The combined
company owns over 100 drilling rigs and has
revenues above $2 billion. While earnings fell
from a high of $1.50 in 2001 to 46 cents in
2003, GSF expects the merger to provide
operational savings and stronger financial
results than either predecessor company could
achieve on its own. The stock was as high as
about $55 in 1997 and had a 2003 low at about
$20. Now at $26.50, the stock technically
appears to be breaking out of a base of
accumulation into a new up trend. GSF pays a
small dividend yielding below
1%.
Amerada Hess Corporation (AHC)
is an integrated oil and natural gas company.
Its worldwide exploration and production
activity account for 30% of the company’s $14
billion revenues and 95% of earnings, which rose
to $5.17 a share in 2003 from a loss the
previous year. Although production was down in
2003, oil and natural gas prices were up,
helping earnings. The stock was at a high of
above $90 in 2001, went to a low of about $41 in
2003, and is now at about $56.50. AHC appears to
be breaking out of a base and starting a new up
trend. The company pays a dividend of $1.20 a
year to yield 2.1%.
As always, we urge our website
visitors to do their own research and exercise
due diligence. Check with your personal
financial consultant before making any decisions
on buying or selling investments. The opinions
expressed by our financial experts are not those
of WBBM Newsradio 780, Infinity Broadcasting, or
any of their affiliated companies. For
entertainment purposes only.
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