10 Questions Roundup: Which Stocks Look Good?

It is one of the few ironies that work in our favor: For more than 100 years, we have commemorated Labor Day by refraining from labor.

But even as we fire up the grill, drive to the beach or head to the megaplex for one more weak summer blockbuster, many investors quietly labor over a nagging question: Do any stocks look good right now?

For those among us who spend the holiday trolling the Web, we culled answers on which stocks look good from our recent "10 Questions" interviews.

We hope readers are rewarded for their labors.

Donald Yacktman, Yacktman Funds

Tyco(TYC Quote - Cramer on TYC - Stock Picks) is our largest holding.

Tyco has real businesses. And it got down to a price that finally tempted us. Our average cost on Tyco is in the single digits. We did not pay up for Tyco. By the time we bought it, [former CEO Dennis] Kozlowski had already been out or was virtually out. We only bought this over the last couple of months.

So they were going to change managers -- that's number one. And number two: They were going to sell off CIT, which gave them cash to pay off their debt.

Yacktman's Picks
Stock	8/16 Price (date before 10Q pub.)	Friday's close	Comments
Tyco	$13.30	$15.69	Well-known skipper Bill Miller has been buying as well.
Lancaster Colony	39.13	41.19	Steady increases in dividends for nearly four decades
Source: Baseline, Morningstar, Dow Jones Interactive, TSC.

And as I said, they have legitimate businesses there. There are things like ADT, AMP and U.S. Surgical, and those are all good businesses. These are not fly-by-night operations here. This is not Enron.

The second one is a company we've owned for a couple years now: Lancaster Colony (LANC Quote - Cramer on LANC - Stock Picks). Lancaster is a fabulous business -- an underappreciated, good business. The company has had 39 years of rising dividends. About 75% specialty foods, with the rest being candles and glassware. The family owns 25% of the company. Virtually no debt. They buy back shares and make synergistic acquisitions.

Todd Ahlsten, Parnassus Equity Income

Ahlsten's Picks
Stock	8/9 Price (date before 10Q pub.)	Friday's close	Comments
Intel	$17.62	16.67	P/E hovers around 37
LSI Logic	6.89	7.33	Number-cruncher Bob Olstein's fund has been adding shares, according to Morningstar.
Cisco	13.12	13.82	Cisco has $9 billion in cash and short-term investments.
Applied Materials	13.86	13.36	Several American Funds are buyers.
Novellus	27.02	24.46	"We're not saying it's the bottom, but for those who want to pick the bottom, Novellus looks like a good trading opportunity," said US Bancorp analyst Gregory Konezny recently.
Cardinal Health	60.58	64.84	Thomas Weisel recently upgraded; Cardinal also extends share-buyback plan
Source: Baseline, Morningstar, Dow Jones Interactive, TSC.

We found increasing opportunities in semiconductors and semiconductor capital equipment, which have come way down in valuation. We found great opportunities in pharmaceuticals and pharmaceutical distribution.

We found value in Intel (INTC Quote - Cramer on INTC - Stock Picks), LSI Logic (LSI Quote - Cramer on LSI - Stock Picks), Cisco (CSCO Quote - Cramer on CSCO - Stock Picks), Applied Materials(AMAT Quote - Cramer on AMAT - Stock Picks) and Novellus(NVLS Quote - Cramer on NVLS - Stock Picks). We think these are great companies that have good balance sheets, good cash flow, we trust the accounting. We trust management, and they're businesses that have bright futures at cheap prices. We've added to those aggressively.

One of my favorite investments is the No. 2 holding: Cardinal Health (CAH Quote - Cramer on CAH - Stock Picks), the big drug distributor. They were a former client of Arthur Andersen. About a month ago, when they were going through a transition to their new auditor, there wasn't a partner to sign their previous documents because Andersen was being dissolved. As a result, the stock traded down $15 a share on that. Cardinal is a remarkable company with remarkable cash flow, so we used that as an opportunity to aggressively buy Cardinal shares.

Craig Callahan and Robert Straus, Icon Info Tech Fund

Callahan and Straus' Picks
Stock	7/15 Price (10Q date)	Friday's close	Comments
Take-Two Interactive	$18.55	25.10	Stock rose 41% in 2001 and is up about 60% this year, and forward P/E of 15.6 is below S&P 500's 19.9.
Activision	27.16	27.82	Stock rose 158% in 2001; Wedbush Morgan trims price target to $35 from $40.
Global Imaging Systems	18.20	19.61	Stock rose 298% in '01; forward P/E is 14.4 Wasatch Small-Cap Value is buying.
Symantec	31.07	28.60	Bear Stearns and AG Edwards recently downgraded stock, but PruSec keeps 'buy' rating. Latest earnings breezed by estimates.
Source: Baseline, Morningstar, Dow Jones Interactive, TSC

Take-Two Interactive (TTWO Quote - Cramer on TTWO - Stock Picks). It's one of our largest holdings, and it's held up real well in a tough environment this year. It's up 11% year to date, and we've owned it for about a year now. We started accumulating it at around $15 when, based on our model, it was extremely cheap and a real bargain.

Activision (ATVI Quote - Cramer on ATVI - Stock Picks) is another name in the entertainment-software group that is fairly heavily weighted in our fund. It hasn't done quite as well as Take-Two, but again relative to the way other stocks have been doing, it's held its own in the year.

Over in the electronic equipment and instruments sector, the name that stands out is Global Imaging Systems (GISX Quote - Cramer on GISX - Stock Picks). That particular name is up 25% year to date. We started accumulating it around the $15 to $18 level.

Symantec (SYMC Quote - Cramer on SYMC - Stock Picks), which is a security software company. We've accumulated that going all the way back to early January 2001, with our average cost right around $31, and it's trading at $34.80 -- that's up almost 4% year to date. Those are the areas primarily that have helped us avoid a significant portion of the downward spiral in tech.

Ivan Arteaga, Gabelli Global Telecom

Arteaga's Picks
Stock	7/8 Price (10Q date)	Friday's close	Comments
British Telecom	$38.86	31.26	After two brutal years, ADR's trailing P/E is 6.6. PEG ratio is 2.2, above industry's 1.3
Telecom Italia	78	79.80	Nations International Value has been adding shares.
Vodafone	14.08	15.99	ADRs shed 27% in '00, 28% in '01 and were recently down 35% for '02.
Source: Baseline, Morningstar, Dow Jones Interactive, TSC.

Regional bells are always good companies, and they are selling at a good price. Some of the foreign incumbents also look good, such as British Telecom (BTY Quote - Cramer on BTY - Stock Picks) and Telecom Italia(TI Quote - Cramer on TI - Stock Picks).

In wireless, Vodafone(VOD Quote - Cramer on VOD - Stock Picks) is No. 1 or No. 2 in just about every one of its markets. The stock is trading at a price that implies a valuation that means you can buy the company at less than six times EBITDA.

David Herro, Oakmark International

Herro's Picks
Stock	6/10 Price (10Q date)	Friday's close	Comments
Televisa	$40.52	31.74	Two American Funds recently owned about 4% of the company.
Femsa	41.80	37.67	Deutsche Bank recently lowered rating; price target to $50 from $58.
Unibanco	18.10	12.73	Bank sees lending portfolio growth below peers.
Source: Baseline, Morningstar, Dow Jones Interactive, TSC

We have decent weightings in Mexico and Brazil, especially Mexico. Again, it's based on value. Companies like Televisa(TV Quote - Cramer on TV - Stock Picks) and Femsa(FMX Quote - Cramer on FMX - Stock Picks), when we first bought into them a year and a half or two years ago, were selling at almost all-time lows -- at crisis lows from a valuation perspective. And these are wonderful businesses; well-run in growth markets.

Televisa is one of the leaders in both content and broadcasting. And Femsa does beverages. Two very solid blue-chip companies that have made money through thick and thin. We still own them. They were 60% to 70% undervalued. Now they're 30% to 40% undervalued. They have moved, but we still like the stocks.

In Brazil we own a bank called Unibanco(UBB Quote - Cramer on UBB - Stock Picks). It's a great financial institution, very profitable and very well run. It's in Brazil, so it's low right now.