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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, Bloomberg L.P.
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