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Table: A Menu Of Investment Opportunities


Cover Story: Where To Invest '96: The Investment Scoreboard: Earnings Outlook

TABLE: A Menu of Investment Opportunities

Be careful. Although the numbers seem enticing, usually high or low percentages

may be a sign of trouble.

High Hopes For Earnings

These companies' earnings are forecast to move smartly in 1996.

PERCENT

CHANGE 1995-96

WESTERN GAS RESOURCES 600%

MERISEL 556

RYLAND GROUP 500

FHP INTERNATIONAL 424

CROWN CENTRAL PETROLEUM 400

BURLINGTON RESOURCES 339

ROADWAY SERVICES 337

PENN TRAFFIC 337

FREEPORT-McMORAN 300

HUNT (J.B.) TRANSPORT 268

Stocks The Institutions Rarely hold

Unpopular--or just overlooked? Either way, if the institutions suddenly take

notice, prices could rise.

PERCENT OF SHARES NUMBER OF

HELD BY INSTITUTIONS HOLDING

AMERCO 1% 10

MIDAMERICAN ENERGY 1 15

FREEPORT-McMORAN 1 18

COPPER & GOLD

MICRON ELECTRONICS 2 29

VALHI 3 33

COOPER CAMERON 5 7

SPIEGEL 5 60

FOOD LION 5 91

LINCOLN ELECTRIC 6 13

COMPUCOM SYSTEMS 6 32

AVERAGE OF 900 COMPANIES 57 363

Companies With The Highest Yield

These companies pay the highest annual dividends as a percent of stock price.

PERCENT

POLARIS INDUSTRIES 18.3%

NIAGARA MOHAWK POWER 11.3

LONG ISLAND LIGHTING 10.4

CENTERIOR ENERGY 8.3

NORTHEAST UTILITIES 7.4

PUBLIC SERVICE ENTERPRISE GROUP 7.3

PACIFIC TELESIS GROUP 7.3

MIDAMERICAN ENERGY 7.2

BROWN GROUP 7.1

PACIFIC GAS & ELECTRIC 7.1

Stocks Selling Way Below Book Value

Bargain-hunters, take note. The stock price of these companies as a percentage

of book is very low.

PERCENT

CALDOR 20%

BRADLEES 22

VENTURE STORES 27

WHX 34

BAKER (J.) 38

PAYLESS CASHWAYS 40

CHARMING SHOPPES 40

HECHINGER 42

AVIALL 53

CROWN CENTRAL PETROLEUM 54

DATA: AS OF NOV. 30, I/ B/ E/S INTERNATIONAL INC., STANDARD & POOR'S

COMPUSTAT, A DIVISION OF THE McGRAW-HILL COS.

The Lowest Price-Earnings Ratios

Prices of these stocks compared with 1996 earnings may suggest unrecognized

values.

RATIO

CALDOR 1.5

STONE CONTAINER 3.6

COLLINS & AIKMAN 3.9

BRADLEES 4.0

JEFFERSON SMURFIT 4.4

BOWATER 4.7

WICKES LUMBER 4.8

CHAMPION INTERNATIONAL 5.2

WEIRTON STEEL 5.4

ZEIGLER COAL HOLDING 5.5

Where Forecasters Disagree The Most

Uncertainty could spell opportunity. The 1996 earnings-per-share estimates are

all over the lot for these stocks. For example: Estimates for Time Warner range

from a profit of $0.43 to a loss of $1.02.

CONSENSUS FOR 1996 VARIATION

CENTS PER SHARE IN FORECASTS

TELE-COMMUNICATIONS -2 850%

ZENITH ELECTRONICS 10 570

NATIONAL STEEL 66 255

CHARMING SHOPPES 4 225

HOST MARRIOTT 4 200

COMCAST -11 191

MORRISON KNUDSEN -8 138

TIME WARNER -29 131

YELLOW 46 91

MAXTOR 43 88


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