§
Figure 5
Source: Salomon Smith Barney
1 For more information on the World Radar Screen, see Deep C. Kapur et al.,
“World Radar Screen,” Global Quantitative Strategy, Salomon Smith Barney,
June 7, 2000.
Selected Companies with Attractive Growth and Value Properties
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Company Name Ticker Industry
Closing
Price
(12/15/00) PEG
FirstCall LT
Growth
Rate
P/E (FY1
Earnings)
SSB
Analyst
Rating
Abbott Labs# ABT Pharmaceuticals 46.81 2.14 12.3 26.30 1M
American Express AXP Diversified Financials 54.63 1.97 13.4 26.39 1M
Anheuser Busch# BUD Beverages 48.88 2.57 11.2 28.92 2L
Baker Hughes BHI Energy Equipment & Service 36.94 2.16 28.5 61.56 2M
Bank of New York# BK Banks 53.19 2.15 12.8 27.56 1M
Chase Manhattan# CMB Banks 43.94 1.20 11.5 12.81 1M
Cigna CI Insurance 119.35 1.20 14.7 17.58 1L
CVS Delaware CVS Multiline Retail 57.94 1.92 16.8 32.19 2M
Duke Energy# DUK Electric Utilities 82.69 2.01 10.0 19.92 2M
Emerson Electric# EMR Electrical Equipment 71.25 1.33 14.5 19.26 1M
Exxon Mobil XOM Oil & Gas 84.13 1.90 9.6 18.49 1L
Fannie Mae# FNM Diversified Financials 84.75 1.41 14.0 19.80 1M
First Data# FDC Software 49.63 1.63 14.3 23.41 1M
FleetBoston Finl# FBF Banks 34.25 0.92 11.0 10.07 1M
General Electric GE Machinery 49.81 2.47 15.9 39.22 1L
Hartford Finl HIG Insurance 71.19 1.40 11.9 16.75 1M
HCA-The HlthCare# HCA Health Care Equipment 39.00 1.67 14.6 24.38 1H
HJ Heinz HNZ Food Products 43.38 1.84 8.5 15.55 2M
IBM# IBM Computers & Peripherals 87.81 1.45 13.7 19.82 1M
Ingersoll Rand IR Machinery 38.06 0.85 12.0 10.15 2H
Intel INTC Semiconductor Equipment 32.44 0.97 20.2 19.19 2M
Johnson & Johnson# JNJ Health Care Equipment 98.56 2.23 13.0 28.99 1L
Kroger# KR Food Products 26.00 1.19 16.0 19.12 2M
Lincoln Natl LNC Insurance 46.81 1.06 12.1 12.86 1M
MBIA# MBI Insurance 70.63 1.10 12.6 13.85 1M
MBNA# KRB Diversified Financials 33.50 1.09 20.3 22.04 2M
Merrill Lynch# MER Diversified Financials 63.63 1.07 14.7 15.83 1H
Micron Tech MU Semiconductor Equipment 35.88 0.58 22.3 11.57 2S
Microsoft# MSFT Software 49.19 1.49 18.2 25.75 2H
Nike NKE Textiles & Apparel 47.63 1.29 15.6 20.27 2M
Pfizer PFE Pharmaceuticals 45.44 2.03 21.9 44.55 1L
PNC Finl Svc# PNC Banks 66.56 1.45 10.7 15.48 2L
Sanmina# SANM Electronic Equipment 73.11 0.85 32.1 27.08 1H
SBC Comms# SBC Diversified Telecommunications 53.69 1.68 14.1 23.65 1M
Southwest Airlines LUV Airlines 30.03 1.56 16.6 26.11 1M
United Tech# UTX Aerospace & Defense 71.19 1.38 14.5 20.05 1M
Unitedhealth Grp UNH Health Care Equipment 117.50 1.63 17.4 28.38 1M
Unocal# UCL Oil & Gas 35.69 1.14 10.0 11.51 2M
Verizon Comms VZ Diversified Telecommunications 55.31 1.39 13.7 19.01 1M
Wal-Mart Stores# WMT Multiline Retail 49.88 2.42 14.4 34.88 1L
Washington Mututal# WM Banks 48.06 1.05 13.0 13.73 1H
Wells Fargo# WFC Banks 50.44 1.47 13.6 19.94 1L
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Guide to investment ratings: RANK is a guide to the expected total return over the next 12-18 months. The total return required for a given rank depends on the degree
of risk (see below) in a stock. The higher the risk, the higher the required return. For example, a 1 (Buy) rating indicates a total return ranging from 15% or greater
for a low-risk stock to 30% or greater for speculative stocks. Estimated returns for other risk categories are scaled accordingly. RISK takes into account predictability
of earnings and dividends, financial leverage, and stock price volatility. L (Low Risk): predictable earnings and dividends, suitable for conservative investor. M (Medium Risk):
moderately predictable earnings and dividends, suitable for average equity investor. H (High Risk): earnings and dividends are less predictable, suitable for aggressive
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Salomon Smith Barney’s Stock Rating System
RISK Predictability of earnings/dividends; price volatility
L Low Risk High predictability; low volatility
M Medium Risk Moderate predictability/volatility
H High Risk Low predictability; high volatility
S Speculative Exceptionally low predictability; highest risk
V Venture Risk and return consistent with venture capital; only for well-diversified portfolios
PERFORMANCE
____Total return (capital gain/loss + dividends) expected over the next 12-18 months____
Rating Recommendation Low Risk Medium Risk High Risk Speculative
1 Buy Over 15% Over 20% Over 25% Over 30%
2 Outperform +5% to +15% +5% to +20% +10% to +25% +10% to +30%
3 Neutral –5% to +5% –5% to +5% –10% to +10% –10% to +10%
4 Underperform –5% to –15% –5% to –15% –10% to –20% –10% to –20%
5 Sell –15% or worse –15% or worse –20% or worse –20% or worse
##################################################
Rückblick auf 2000
Krasse Performance
##################################################
Die letzte Zahl ist die Performance in %
Top Picks – 2000 Performance
§
Price Total
Current Price performance return
Price Price plus from from
Name Ticker Rating Note 12/23/99 12/20/00 Dividend Dividend 12/23/1999 12/23/1999
Education Management Corp. EDMC 1H 13.75 30.38 0.00 30.38 120.9% 120.9%
Cardinal Health Inc. CAH 1H 46.19 91.25 0.11 91.36 97.6% 97.8%
Philip Morris Cos. Inc. MO 1S 23.44 44.13 2.02 46.15 88.3% 96.9%
Novoste Corp. NOVT 1S 16.00 31.38 0.00 31.38 96.1% 96.1%
Southwest Airlines Co. LUV 1M 16.13 29.57 0.22 29.79 83.4% 84.7%
Energen Corp EGN 1M 17.06 30.81 0.67 31.48 80.6% 84.5%
First HealthGroup FHCC 1H 26.72 46.98 0.00 46.98 75.8% 75.8%
Corning, Inc. GLW 2 123.06 205.25 0.06 205.31 66.8% 66.8%
Merrill Lynch & Co. MER 1H 1 39.13 62.75 0.61 63.36 60.4% 61.9%
Heller Financial HF 1H 18.94 28.81 0.40 29.21 52.1% 54.3%
Starwood Hotels & Resorts HOT 1M 21.75 32.69 0.67 33.36 50.3% 53.4%
Tyco International, Ltd. TYC 1M 33.25 50.00 0.50 50.50 50.4% 51.9%
The Healthcare Co. HCA 1H 3 28.50 43.01 0.08 43.09 50.9% 51.2%
Pfizer PFE 1L 4 85.13 127.53 0.98 128.51 49.8% 51.0%
Keebler Foods Company KBL 3M 27.75 41.38 0.45 41.83 49.1% 50.7%
LAM Research Corp. LRCX 2 108.25 162.43 0.00 162.43 50.1% 50.1%
Schlumberger Ltd. SLB 1L 1 59.31 83.53 0.75 84.28 40.8% 42.1%
Baxter International Inc. BAX 1M 1 62.63 87.80 1.16 88.96 40.2% 42.1%
Sepracor Inc. SEPR 2 102.63 144.37 0.00 144.37 40.7% 40.7%
Anheuser-Busch Cos BUD 2L 1 33.66 45.75 0.63 46.38 35.9% 37.8%
Fannie Mae FNM 1M 62.25 84.06 1.12 85.18 35.0% 36.8%
Fort James FJ 4 27.13 36.34 0.60 36.94 34.0% 36.2%
Verio Inc. VRIO 1S 4 44.50 60.00 0.00 60.00 34.8% 34.8%
Transocean Offshore, Inc. RIG 1M 32.31 42.13 0.12 42.25 30.4% 30.7%
Litton Industries, Inc. LIT 1M 47.25 61.69 0.00 61.69 30.6% 30.6%
Jacobs Engineering Group JEC 2 29.75 37.69 0.00 37.69 26.7% 26.7%
Kinder Morgan Energy Prtns. KMP 1M 42.50 49.69 3.20 52.89 16.9% 24.4%
Stillwater Mining Company SWC 1S 28.75 35.50 0.00 35.50 23.5% 23.5%
Republic Services Inc. RSG 1H 12.50 15.25 0.00 15.25 22.0% 22.0%
Franklin Resources, Inc. BEN 2M 31.00 37.00 0.24 37.24 19.4% 20.1%
Louis Dreyfus Natural Gas LD 2 16.31 19.50 0.00 19.50 19.5% 19.5%
Amgen AMGN 1H 54.19 63.63 0.00 63.63 17.4% 17.4%
Ambac Financial Group, Inc. ABK 2 52.25 60.63 0.22 60.85 16.0% 16.5%
Marsh & McLennan Companies, Inc. MMC 1L 96.31 109.75 1.90 111.65 14.0% 15.9%
PMC-Sierra PMCS 1H 1 72.63 83.88 0.00 83.88 15.5% 15.5%
John Hancock Bank & Thrift Opportunity Fund BTO 2H 7.69 8.00 0.77 8.77 4.0% 14.1%
EMC Corp. EMC 1M 1 50.56 55.63 0.00 55.63 10.0% 10.0%
NCO Group, Inc. NCOG 2 28.06 30.62 0.00 30.62 9.1% 9.1%
Flextronics International FLEX 1H 1 21.28 23.19 0.00 23.19 9.0% 9.0%
Canadian National Railway Co. CNI 1M 26.63 28.25 0.70 28.95 6.1% 8.7%
Jones Apparel Group JNY 1H 28.00 30.13 0.00 30.13 7.6% 7.6%
AES Corp. AES 2 67.94 72.81 0.00 72.81 7.2% 7.2%
Crane Co. CR 2 18.75 20.00 0.00 20.00 6.7% 6.7%
Eastman Chemical EMN 1H 45.19 45.88 1.76 47.64 1.5% 5.4%
Wells Fargo WFC 2 41.50 42.75 0.44 43.19 3.0% 4.1%
AMB Property Corp. AMB 2 19.31 20.06 0.00 20.06 3.9% 3.9%
Exxon XOM 1L 83.81 85.19 1.76 86.95 1.6% 3.7%
Equity Office Properties EOP 2 23.88 24.18 0.00 24.18 1.3% 1.3%
Radio Shack RSH 1M 46.13 45.00 0.00 45.00 -2.4% -2.4%
Harrah’s Entertainment HET 1M 25.31 24.50 0.00 24.50 -3.2% -3.2%
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