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DJ Hot Stocks On Wall $treet Week With Fortune


By Michelle Rama
Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--The following companies were mentioned during the Friday, Oct. 24 airing of "Wall $treet Week With Fortune" on PBS.
Pfizer (PFE); General Electric (GE); Bank of America
(BAC); Citigroup (C); Wells Fargo (WFC); Nokia (NOK);
Eastman Kodak (EK); American International Group (AIG)


Michael Farr of Miller & Washington expects earnings to improve, as information technology companies experience greater end-market demand.

Despite the recent pause in the market rally, "the trend is up," Farr said. "Don't fight that trend."

Right now, he likes Pfizer and General Electric stocks, because they haven't moved much higher in several months and still have good earnings. Both have dividends of 2%, he noted.

He also likes Banc of America, because it's trading at "11 or 12 times next year's earnings, paying a 4% dividend. For me there's money to make there."

Farr also likes Citigroup, Wells Fargo and American International Group.

He currently wouldn't buy Eastman Kodak, but said "People that are patient with Kodak are probably going to do fine. I probably just am not as patient."

Farr also prefers Nokia over Motorola, saying his firm owns Nokia, but sold the other telecom company. Nokia has 39% market share in mobile phones compared to Motorola's 16%, he said. Nokia also has higher profit margins than Motorola, he added.
Nextel Communications Inc. (NXTL); Motorola (MOT);
Cephalon Inc. (CEPH); Providian Financial (PVN); Eastman
Kodak (EK)


Joan Lappin, a fund manager at Gramercy Capital Management, echoed Farr's view that the market is on an upswing.

"I believe we're in a stock-picker's environment, and the people with good analytical skills who can pick and choose well are the ones that are thriving now and will thrive," Lappin said.

Both she and Farr also agreed that the bond market can wreak huge losses for investors once interest rates rise.

Lappin sees Eastman Kodak moving in the right direction in order to plug up the sales that digital photography has siphoned from the company's film business. She said the company's dividend cut is a necessary step toward building a digital business and keeping sales from dropping 25% to 30%.

Among Lappin's favorite stocks are Nextel and Providian. She has a $20 price target on Providian and said earnings in 2004 could double from this year.

Nextel is a top pick because it was able to move swiftly into profitability and pay down its debt. At the same time, the Federal Communications Commission's "clearing the 800 band" gave the company a lot of bandwidth to increase its network size in the future.

Nextel recently told Lappin that even if it has no growth next year, it will earn close to $1.80 to $2. "That's too cheap for what seems to be the leader in wireless telephony," she said.

Meanwhile, Lappin prefers Motorola to Nokia, saying "people look at Nokia as a last cycle, big winner. I have no problem with the company. It's just that stock is not going to run and make you the kind of money it did. I look at Motorola and say, been down so long, looks like up to me."

Her other top pick is Cephalon, which makes Provigil, a drug for people with a sleep disorder called narcolepsy. Provigil, she predicts, has the potential to be a $1 billion drug because it received an expanded label for use to help night-shift workers stay awake.

Chiquita Brands International (CQB); Performance Food
Goup Co. (PFGC)


Heather Jones, analyst at BB&T Capital Markets, likes Chiquita because Americans are eating healthier. Bananas, which are Chiquita's largest business, are the most consumed fruit, she noted. Jones also expects Chiquita to benefit from the strengthening euro.

Another large company that will benefit from the trend is Performance Food Group, whose fresh cut fruit and salad categories should boost growth at the company.

-By Michelle Rama; Dow Jones Newswires; 201-938-4046; [e-mail]


(END) Dow Jones Newswires

10-26-03 1747ET- - 05 47 PM EST 10-26-03