Singer, Atlantic Richfield, Business Objects and Lexmark
A selection of some of the most intriguing stock newsletter suggestions on the Web. The items presented do not represent the views of
TheStreet.com
; rather, the collection is offered as a service to our members who may be scanning the Web for stock-related information.
Singer
John Buckingham
(10/8)
Singer
(SEW)
, the world's largest manufacturer of consumer sewing machines, is trading at its lowest levels since the firm went public in 1991, says value investor John Buckingham of
The Prudent Speculator
. The company, which also sells electronic equipment, household appliances and consumer durables, gets most of its revenue from Asia, Brazil and Latin America. After suffering significant losses in the fourth quarter of 1997 and the first quarter of 1998, Singer began shoring up its balance sheet and could be poised for a turnaround.
Despite the emerging markets crisis, Singer CEO Stephen Goldman says Asia remains profitable. Singer has reduced inventories and receivables by $130 million and lowered debt by $115 million during the first half of 1998.
Singer is now trading at 21% of sales and 83% of book value, says Buckingham, who recommends buying the stock up to 4.88. It was trading at 3 3/4 Friday.
More information can be found at:
TheStreet Recommends
Atlantic Richfield
Online Investor
(10/8)
Atlantic Richfield
(ARC) - Get ARC Document Solutions, Inc. Report
has been rising lately, thanks to a fat 4% dividend yield and a perception that oil stocks are safe havens these days. But the
Online Investor
also points out that it could be a takeover target.
The oil company has been one of the worst performers in the industry this year before takeover speculation emerged, fueled by falling oil prices, which may cause smaller players like ARCO and
Mobil
(MOB)
to try to link up.
The company will have a challenging year if it isn't taken over. Earnings are pegged to drop 58%, to $2.32 per share, according to consensus estimates. Atlantic Richfield has taken steps to protect itself from crushing losses. Noncore assets (like its chemical unit, sold for $5.6 billion in June) are being jettisoned, and possible layoffs have been announced. Changes in management have also been made in an effort to reduce overhead and operations costs.
More information can be found at:
Business Objects
Bill Schaff
(10/8)
Business Objects
(BOBJY)
have been unusually volatile, even for this market. Trading at 74 in mid-August, they plunged below 55 in September, rose to nearly 75 in 12 days, and flopped back to 58 last week.
Forbes.com
believes institutional investors, who hold 90% of the stock, were taking profits at the peaks. But, in any case, the company is sound and "well positioned to continue its growth," says
Forbes.com
.
Lexmark, spun off from
IBM
(IBM) - Get International Business Machines Corporation Report
in 1991, has taken business from dominant
Hewlett-Packard
(HWP)
by focusing on select industries, such as retail pharmacies, banks and auto dealerships. The company now sees opportunity in the small office/home office market with ink jet printers and digital photography printers.
International exposure and the prospects of a weak Christmas season still make for clouds on Lexmark's horizon, but "Lexmark has thrived where others have feared to tread before," notes
Forbes.com
.
More information can be found at:
www.forbes.com
