Message-ID: <7191791.1075840331640.JavaMail.evans@thyme> Date: Thu, 17 Jan 2002 14:08:50 -0800 (PST) From: advdfeedback@investools.com To: dbaughm@ect.enron.com Subject: January 14-18, 2002 Edition Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: INVESTools Advisory<ADVDfeedback@investools.com>@ENRON X-To: dbaughm@ect.enron.com X-cc: X-bcc: X-Folder: \ExMerge - Baughman Jr., Don\Deleted Items X-Origin: BAUGHMAN-D X-FileName: don baughman 6-25-02.PST INVESTools Advisory A Free Digest of Trusted Investment Advice To unsubscribe from this free newsletter, please see below. In This Issue: 1. 2001 Portfolio +36%; 2002 Portfolio Just Released (C) 2. Forecast 2002: Mostly Sunny, Particularly for Small Caps (NYFX) 3. Time to Buy Disney (DIS) 4. Zacks: Biovail Set to Gain 10+% in 2002 (BVF) 5. Smallest Stocks are the Places to Be (BLPG) *************** A Word from our Sponsor ******************* Rip-Roaring Returns from the Post-September 2001 Rebound! Few profited as handsomely as Steve Harmon in today's market turnaround. For instance, his portfolio of travel security stocks is up an incredible +88% since 9/01. And the best is yet to come! Get a jump on 2002 with a FREE 30-day trial: http://www.investools.com/c/go/BRBN/THADV-brbnTD1?s=S601 *********************************************************** INVESTools Advisory Compiled by John Brobst, INVESTools.com 1. 2001 Portfolio +36%; 2002 Portfolio Just Released (C) In December 2000, Frank Curzio issued a portfolio of 10 stocks he predicted would do well in the coming year. He was right. Despite the market's troubles, his portfolio gained an impressive +36%. Aiming for a repeat performance, he just released his portfolio for 2002. "Do not procrastinate," he advises. "We urge investors to buy all of our situations. Do not just pick and choose." One of Curzio's picks is Citigroup (C). The financial services goliath stands to do well during an economic turnaround particularly while interest rates remain low. Curzio sees management making the right moves to boost earnings; for instance, it will spin-off 20% of its Travelers Insurance group in 2002. Another Curzio recommendation is to sell short Broadcom (BRCM). The firm's chips enable broadband digital data transmission to residences and businesses over communication networks. Curzio considers today's short-term economic uncertainty and calls the stock "overvalued" with a P/E multiple near 140. "Look for a steady pullback throughout the first quarter. Sell short," Curzio advises. For more on Frank Curzio's advice see "FXC's 10 Picks for 2002." Francis X. Curzio provides asset growth and capital preservation with a list of picks in key categories for the coming year. To get this special report, go to: http://www.investools.com/c/go/FXCP/THADV-fxcp011702?s=S200 ---------------------------------------------------------- 2. Forecast 2002: Mostly Sunny, Particularly for Small Caps (NYFX) In January 2001, Jim Oberweis made a number of predictions for the year that hit the bullseye. For example, the market rallied in early 2001 but fell for most of the year. Small-caps outperformed large-caps, and short-term interest rates fell sharply while bond rates rose, eliminating the inverted yield curve. For 2002, Oberweis sees large-caps returning an average 8% to 10%, well below the 20% annual average of the 1990s. "We continue to believe that small-caps will buck the trend and offer very good opportunities for investors," he predicts. To capitalize, Oberweis offers a list of five new small-cap picks. One of these is Nyfix (NYFX). The firm makes electronic trading systems for brokerages that trade in equities and derivatives. Blue-chip customers like Lehman Brothers, Deutsche Bank, UBS Warburg and Merrill Lynch use the Nyfix Network to send trading orders to exchange floors electronically. Last quarter, revenues grew a healthy 75% to $11.4 million and boosted EPS 65% to $0.10. Oberweis sees Nyfix growing revenues (and EPS) from $24 million ($0.21) in 2000 to $40 million ($0.32) in 2001 and again to $60 million ($1.05) in 2002. His asset management clients now own roughly 34,000, and he maintains a buy sign on the stock. For more on Jim Oberweis' advice see "Currently Recommended Stocks," January 2002, The Oberweis Report. Jim Oberweis invests in small-cap stocks with revenue and earnings growing at least 30% and mid-caps growing at least 20%. For a free 30-day trial go to: http://www.investools.com/c/go/OBER/THADV-ober011702?s=S601 ----------------------------------------------------------- 3. Time to Buy Disney (DIS) Chuck Carlson admits having a tough time getting excited about Disney (DIS). For instance, the entertainment giant's theme park is mired by a sluggish economy, fears of terrorism and erratic gas prices. The anemic ad market continues to hurt its ABC network, and its film business has turned in a spotty performance. Carlson sees today's slump as a buy opportunity. "Disney has brand names that would make any marketer salivate," he says. The firm has not had a new hit TV show since "Who Wants To Be A Millionaire," but Carlson says Disney's creative teams "don't stay in dry spells for very long." Also, consumers will eventually start flying to its theme parks again as economic and terrorist concerns abate. At today's low prices, stock in Disney is fully discounting bad earnings for at least the next two quarters, according to Carlson. Shares are well off their 2000 highs near $44. That means investors can buy "a quality blue chip at an affordable price," Carlson says. He recommends buying as "the stock offers good long- term upside potential." For more on Chuck Carlson's advice see "DRIP Analyst," January 2002, DRIP Investor. Chuck Carlson provides guidance to buying stocks without a broker via dividend reinvestment plans (DRIPs). For a free 30-day trial go to: http://www.investools.com/c/go/DRIP/THADV-drip011702 ---------------------------------------------------------- 4. Zacks: Biovail Set to Gain 10+% in 2002 (BVF) Ben Zacks does not beat around the bush about the prospects for Biovail (BVF). "Investors who buy Biovail in the $54 - $55 range can expect an appreciation of 10+% over the next 12 months," Zacks says. The firm makes medicines based on its proprietary oral controlled-release drug delivery technology. Its biggest hit is Tiazac, a treatment for hypertension and angina. Tiazac beats competing drugs as it requires only a daily dose and has fewer side effects. Zacks lists many other reasons why Biovail is a good bet for 2002. For example, revenues last quarter grew 63% to $152.2 million, net income rose 37% to $55.8 million, and the firm beat analyst EPS estimates of $0.36 by a penny a share. Also, Biovail just inked a host of marketing pacts with Glaxo Smith Kline that should boost sales. Biovail shares are not cheap at 33x EPS estimates of $1.66 for 2002. But Zacks remains optimistic. "The high valuation is justified by the company's high long-term EPS growth rate of 30%," he says. He agrees with six of the 16 analysts covering Biovail who maintain a 'strong buy' rating. For more on Ben Zacks' advice see "Stock Pick of the Month," January 2002, Zacks Advisor. Ben Zacks uses earnings estimate revisions from analysts at brokerages to select stocks likely to outperform the market over the next 12 months. For a free 30-day trial go to: http://www.investools.com/c/go/ZAKS/THADV-zacks011702?s=S600 ---------------------------------------------------------- 5. Smallest Stocks are the Places to Be (BLPG) The Russell 2000 index of small-cap stocks just chalked up its third straight year of outperformance by advancing 1% vs. a -13% slump for the S&P 500. Rich Moroney sees more growth like this in 2002 as small-stock cycles like this one "tend to persist." In particular, micro-caps should see another great year even after providing the bulk of last year's growth. Moroney profiles two micro-caps he calls "especially promising" for 2002. The first is Boron, LePore & Associates (BLPG), who provides marketing, education and sales services to healthcare providers. The stock jumped 65% since hitting bottom in September 2001 due to profit and terrorism concerns. But Moroney predicts significant improvements for the December quarter thanks to a rebound in travel and postponed business. A consensus of analysts pegs Q4 EPS at $0.21, a gain of 40% over the same quarter last year. Management forecasts full-year EPS will reach $0.80 to $0.84. Moroney calls the stock "reasonably priced" at 20x 2002 estimates and below 1x sales. "The stock, with support near $12.25, is rated 'buy'," he says. For more on Rich Moroney's advice see "Featured Report," January 7, 2002, Low Priced Stock Survey. Richard Moroney offers fundamentally solid small- and mid-caps ready to soar 40% to 400%+. For a free 30-day trial go to: http://www.investools.com/c/go/LPSS/THADV-lpss011702?s=S600 *************** A Word from our Sponsor ******************* Tech Buyback Portfolio Posts Stellar Gains: +39.23% YTD! David Fried knows a stock is undervalued when the company buys back its shares. That's how he earned 39.23% YTD in techs while the benchmark Nasdaq fell 21.82%. 'Buy these 5 techs today,' Fried says. Get them with a FREE trial: http://www.investools.com/c/go/BACK/THADV-backTX3 *********************************************************** Disclaimer The INVESTools Advisory is published solely for informational purposes and does not solicit nor offer to buy or sell any stock, mutual fund or other security. It does not attempt or claim to be a complete description of the securities, markets, or developments referred to in the material. All expressions of opinion are subject to change without notice. The information is obtained from internal and external sources which INVESTools considers reliable, but INVESTools has not independently verified such information and INVESTools does not guarantee that it is accurate or complete. INVESTools does not undertake to advise anyone. INVESTools, its employees, and/or officers and directors, may from time to time have a position in the securities mentioned and may sell or buy such securities. 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