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Fallen Angels To Resurrect


Inside Wall Street

FALLEN ANGELS TO RESURRECT

Notwithstanding the market's climb to record highs, investment manager Tony Spare finds that bargains still abound. Several of his picks are "fallen angels"--former growth stocks that disappointed the Street and that have hardly budged in the bull market. He has been snapping up shares of Bristol-Myers Squibb (BMY), Tambrands (TMB), and Dun & Bradstreet (RND).

Spare considers Bristol-Myers, currently trading at 66, to be way undervalued. Seen by analysts mainly as a drug company, Bristol-Myers is also a "diversified international consumer-products company that's well-positioned for strong growth worldwide," insists Spare. Its balance sheet remains strong, he adds, and recent earnings disappointments "have masked its excellent cash flow and leading market-share position of its many products." He sees the stock hitting 75 in a year.

The Tambrands line of feminine-protection products, says Spare, "ranks very high in market share worldwide." He feels encouraged by a strong balance sheet and by a record of 47 years of steadily increasing dividends. He thinks the stock, now trading at 43, is also cheap--and will rise to 55 during this year.

Dun & Bradstreet has made its name, notes Spare, on the strength of publishing and financial-database operations worldwide. The stock is buttressed, he says, by a strong cash flow and high dividend yield--of 5%. His target for the stock, now priced at 52, for the year is 60.BY GENE G. MARCIAL


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