General Dynamics

Raytheon

"We're looking at the beginning of a major commitment on the part of the U.S. government to more defense spending that will go on for years. We've seen massive consolidation in that industry, and so the big players are going to be the beneficiaries of that; General Dynamics, Raytheon, two good companies in that area. It is not a specific wartime type of investment."

Norfolk Southern

CSX

"As we start to see the economy improving, you can start to look at things like rail transportation, which are volume sensitive to an expanding economy. I like Norfolk Southern and I like CSX. They are consistent with an economy improving without a great deal of pricing flexibility. These companies are volume-driven -- if you have more carloading, they will do better going forward."

Citigroup

American Express

"We're looking at the financials, Citigroup, for example, and American Express. Areas that we have seen some sort of, you know, unusual or extraordinary events that have brought worry to share holders, yet you're looking at profitable companies in profitable industries."

Philip Morris

"I think they're a better buy today than they've been in a long time. In the long run, Friday's $28 billion jury judgement against Philip Morris is not bad. It is shocking, to some degree that juries really believe can give out these awards and have some kind of meaning. This one though, is so out of line, I think the market will see through it quickly. Courts have to do something about it or Philip Morris would be a bankrupt entity as of Monday morning, and that is not going to happen."

Verizon

SBC

"I've liked SBC and Verizon all this year. Everybody is aware that long distance rates have gone down, but what most people don't realize is, local phone calling is not something that's going out of business. And at the same time, even with long distance calling, there's a floor to pricing, and these two companies have been strong players. So as survivors, they are bound to improve with improving economics for the entire industry."