Texas Instruments Inc (TXN)

[Eric]

Jim Jubak Picks Texas Instruments ...

... as one of the

>> 10 Best Stocks for the Rest of 2004

Jim Jubak
Jubak's Journal
8/20/2004

The bad news is the uncertainty should last into 2005. The good news is this is a great time to pick up great growth names on the cheap.

If you’re looking for certainty, you’ve come to the wrong economy, the wrong stock market and the wrong column. ... The current uncertainty about oil prices, economic growth, the pace of interest-rate increases, corporate capital spending and company earnings isn’t likely to go away anytime soon. In my opinion, it will extend well into 2005 (and investors may not like the way this uncertainty resolves itself next year). ... So what do you do about setting an investment strategy amidst so much uncertainty? You embrace uncertainty and use its ebbs and flows as indicators of how to position a portfolio. In this column, I’ll show you how that works and give you my best shot at the 10 best stocks for the rest of 2004. ... <BIG SNIP> ... This kind of volatility means that this stock market will repeatedly put great growth stocks on fire sale. ... The advantage of my “embrace the uncertainty” strategy is that you’ll be buying great growth on the cheap. The cheap price will temper the downside if the company disappoints. The great growth will temper the downside if the economy disappoints. And the cheap price and the great growth will give you solid upside if the economy muddles through. (Which, by the way, is my prediction for the rest of 2004 and early 2005.)

So all you need is 10 great growth stocks selling at cheap prices, right?

Here are my suggestions:

                  Trailing   Projected 5-yr.   Loss in Last   
                     P/E         EPS Growth        30 days 
                   =======    ==============    ============ 
 Texas Instruments  18.4           19.8%             5% 

[Snip 9 Others, but note that of all 10 TXN has the 2nd highest Projected 5-yr. EPS Growth] <<

- Eric -