Program air date: June 28, 2002
|
Dow Jones Industrial Average
|
S&P 500
|
Investors appearing on the TV program select their favorite stocks every week. We're tracking their TV picks online--along with picks available only on this Web site--so you can keep track of their choices and gauge their success (or lack thereof)
The stock charts, which update dynamically, start three months before the air date of the show on which the stock was picked. Click on each graphic to get a larger, one-year price chart.
These picks reflect the choices of individuals appearing on Wall $treet Week with FORTUNE, and should not be taken as a recommendation to buy or sell stocks. The comments for each stock reflect only the stock picker's views, and do not necessarily represent the opinions of Wall $treet Week with FORTUNE, PBS, Maryland Public Television, or your local PBS station.
Picks from the June 28, 2002 program:
James Chanos' picks
Keep in mind that Chanos is a short-seller, so he makes money when his picks fall in price, and loses money when their price increases. One sector he continues to short heavily despite its already-steep plunge is cable television. "What bothers us most about the cable industry is that this is an industry that has never had free cash flow, it's never had earnings, and it has very high ongoing capital expenditures," Chanos said.
Beyond cable, he describes his targets as an eclectic collection of individual stocks.
Web picks:
Sunrise Assisted Living
As its name implies, this company operates assisted living communities for the elderly. But the majority of Sunrise's earnings are derived from selling off properties to its own affiliates. These are low or no quality earnings.
Eastman Kodak
It's a fine company caught in a secular decline, as digital imaging replaces analog cameras that use film.
Sprint
Like the rest of the telecommunications industry, Sprint is still heavily leveraged with negative free cash flow. Even if competitors go bankrupt, keep in mind that lots of bankruptcies in other industries have never been good for the survivors, because the industrywide capacity doesn't go away. The fiber-optic cable networks will still exist. Bankrupt competitors may even have an advantage, because bankruptcy eases their debt obligations, thus lowering their costs.
TV Picks:
Yahoo
The cost of options are still a big problem that companies should be forced to account for, and Yahoo has extremely high options expenses. In 2001, its stock options expenses, which are buried in a footnote in the annual report, exceeded its revenue. Not just its earnings, but revenue.
|
|
James Barrow's picks
This value fund manager's current holdings include some contrarian sectors, such as tobacco, oil and utilities. "Kind of boring things," Barrow said. His largest holding in the Vanguard Windsor II fund is Philip Morris. After the show, Barrow cited Imperial Tobacco, a British company.
Philip Morris
Tobacco companies have had a bad week, but one week does not a year make.
Imperial Tobacco
As a British company, it's a tobacco firm without the litigation that U.S. tobacco companies face.
|
 |
|
