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Finding Cheap Stocks in a Pricey Market
One approach uses future earnings and interest rates to gauge value. Using
such a model, the DAIS Group compiled this list of undervalued stocks.
RECENT EXPECTED
PRICE ONE YEAR GAIN
CORPORATE EXPRESS 14 171%
CORRECTIONS CORP.
AMERICA 42 150
PETSMART 11 145
ASCEND COMM. 52 142
BOSTON CHICKEN 13 132
REPUBLIC INDUSTRIES 23 127
U.S. CELLULAR 30 127
ASPECT TELECOM 19 120
LEARNING COMPANY 10 98
COOPER CAMERON 50 89
WORLDCOM 32 83
HFS 58 82
ACCUSTAFF 27 81
Another method uses private market value (PMV), based on cash flow and
balance sheet data. The lower the price is to PMV, the bigger the bargain.
RECENT PRICE/PRIVATE
PRICE MARKET VALUE
LOEWS 103 0.18
USF&G 25 0.26
CHRYSLER 36 0.31
AETNA 107 0.32
RJR NABISCO HOLDINGS 31 0.43
JOHNSON CONTROLS 43 0.47
DELTA AIR LINES 88 0.48
GENERAL MOTORS 58 0.48
AMR 99 0.49
BRIGGS & STRATTON 50 0.52
WHIRLPOOL 49 0.52
GTE 48 0.53
TOSCO 30 0.54
DATA: THE DAIS GROUP, BW
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Updated July 25, 1997 by bwwebmaster
Copyright 1997, by The McGraw-Hill Companies Inc. All rights reserved.
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