Rock of Ages (ROAC) is neither a church choir nor a rock band. It's a company in which Goldman Sachs Asset Management has taken a 10% stake. Other investors include Wellington Management, with 9%, and Fidelity, with 5%. What's Rock's appeal? It's the leader in the tombstone business.

''Rock of Ages is the kind of special-situation stock we hanker for,'' says Mike Connor, co-head of CB Partners, a New York investment firm. The stock, now at 11, traded as high as 21 a year ago. Rock of Ages is a pure play in the rapidly growing tombstone market.

Lower death rates have been a concern for funeral homes. But Rock ''has a virtual lock on its business--from quarrying marble and granite to making and distributing tombstones,'' Connor notes. So Rock is gaining market share and raising prices.

Connor and his partner, Jerry Ballan, think the price could double in 6 to 12 months, based on the 30% annual earnings growth they see for the next few years. They think Rock represents a ''very strong takeover target.'' They note that the stock trades at a price-earnings ratio of just 11--lower than others in the death-care industry, such as Service Corp. International, whose p-e is 20.