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Three That Got Unfairly Pummeled


Inside Wall Street

THREE THAT GOT UNFAIRLY PUMMELED

With the market so unrelenting in beating down stocks, what is an investor to do? Savvy money manager Seth Glickenhaus thinks such times usually are the most opportune for value-hunting. "When you know a company is basically sound, and its stock is being hammered to a fare-thee-well, there is no reason not to buy," he says.

He points to three stocks he thinks don't deserve the beating they've been getting: Cheyenne Software, a major software maker, primarily for wide-area network computers, which has recently dived to 8, down from 30 in mid-March; Ivax, a large generic-drug maker, which has crashed to 15, down from 38 in early March; and O'Sullivan Industries, a manufacturer of ready-to-assemble furniture, which has plunged to 11, down from 24 in early February.

"In 18 months, I see these stocks doubling in price, based simply on their growth businesses and their resiliency," says Glickenhaus.

He notes that Cheyenne has disappointed the Street because most analysts now expect the company to grow at only 40%--instead of the previous 50% a year. He notes too that Cheyenne controls 60% to 70% of the market for its software products.

In the case of Ivax, Glickenhaus isn't worried over the competition in generics that the Street is now concerned about. "Ivax Chairman and CEO Phil Frost has made it known he uill buy 1 million more shares to add to his existing 20% stake. That's good enough for me to have faith in the company," says Glickenhaus.

As for O'Sullivan, he thinks that the ready-to-assemble furniture business has huge growth prospects, as demand has skyrocketed. "Its key to success is low cost and convenience," he says.GENE G. MARCIAL


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