Analysts predict boost for L.A.-based 'Clinton stocks'; gains seen for high tech, health care, environment.

When Los Angeles voters cast ballots for Bill Clinton on Nov. 3, few realized their choice may eventually help boost the stock prices of some hometown companies.

In the weeks after the election, analysts are increasingly bullish on so-called "Clinton stocks," those public companies poised to benefit from the president-elect's economic proposals.

While Clinton's expected victory was largely taken into account by the market before the election, several local companies may find that the president-elect's future agenda and their economic agendas mesh especially well.

In a Clinton economic landscape, industries expected to profit are: high-technology, health care, infrastructure, and environmental-related sectors such as pollution control and hazardous waste clean-up.

Analysts said local winners in these industries could include: CalMat Co., International Technology Corp., Amgen Inc., and high-tech companies such as International Rectifier Corp.

However, before revealing key picks, analysts cautioned investors to eye individual companies rather than buy blindly in those industries Clinton is expected to favor.

"I don't think anybody ought to buy so-called 'Clinton stocks," said Alfred Goldman, director of technical research, A.G. Edwards & Sons. "You shouldn't buy because you think President Clinton is going to favor this or that. It's too much of a gamble."

With that disclaimer, analysts are still touting several local companies as good long-term buys.

HIGH-TECHNOLOGY

Michael D. Holtrey, branch manager for Long Beach-based Baraban Securities, said the "purest L.A. play" in the high-tech industry is International Rectifier, an El Segundo firm which makes semiconductors.

Holtrey said the company is a good buy because of a high demand for semiconductors.

To revive the U.S. economy, President-elect Clinton must advocate investment tax credits, research and development tax credits and a capital gains tax cut, according to James W. Reynolds, director of research for Wedbush Morgan Securities. These policies will provide a boon to technology companies, Reynolds said.

His top pick: Costa Mesa-based FileNet Corp., which closed at $19 per share last Monday.

Doug Salvati, senior portfolio investment manager at Shearson Lehman Brothers, recommended Van Nuys-based Superior Industries International, which makes car parts. Last Monday, Superior closed at $25 per share.

"Not just a Clinton turnaround, but an economic turnaround will help the company," Salvati said.

INFRASTRUCTURE

"President-elect Clinton has identified kick-starting the economy and increasing employment to be top priorities for his new administration," said Martin Cosgrove, vice president of research, Wedbush Morgan Securities. "Clinton mentioned an increase in spending to improve infrastructure which would fulfill both of these issues."

Cosgrove was bullish on infrastructure-related companies such as San Bernardino-based Kasler Corp., a major highway builder. Last Monday, Kasler closed at $10 per share.

Los Angeles-based CalMat Co., which provides construction material for road building, was the pick of several local analysts.

"We don't deal in the stock market, we deal in rocks," said Ronald Hadfield, chief financial officer, CalMat. "If it is true Clinton will emphasize infrastructure, that will be good for us. It's just too early to tell."

Analysts also mentioned Pasadena-based Jacobs Engineering Group, up to $29 a share last Monday.

HEALTH CARE

Because Clinton has vowed to reform the nation's health care system, health maintenance organizations' share prices are up substantially and future trends are "extremely favorable," noted Todd Richter, senior health analyst, Dean Witter Reynolds, Inc.

"One of the best positioned HMOs in the country is PacifiCare Health Systems," Richter said.

He noted the Cypress-based company's "outstanding management team" and said it was "very, very, well positioned."

PacifiCare Chief Executive Officer Terry Hartshorn said he closely monitored President-elect Clinton's proposed health care policies.

"We plan to capitalize on these opportunities," Hartshorn said, citing his company's strong balance sheet and high debt capacity.

Because Clinton has vowed to keep down health costs, in part by curbing drug prices, many analysts predicted a drop in pharmaceutical company stocks.

However, at least one analyst saw a long-term buying opportunity in drug company stocks.

Kent Perkers, an analyst with Brokers Investment Corp., advocated Thousand Oaks-based Amgen Inc.

"Clinton may put a hold on profits" for drug companies, said Perkers. "But although a company might make a little less with each pill, you will eventually have 30 million more people who can afford the pills."

ENVIRONMENTAL

Closely tied to federal government policies, the environmental industry is ready to benefit if Clinton makes good on election promises to clean up the air, water and hazardous waste sites.

"The environmental industry is an industry with its future in the balance and voters have tipped the scales in its favor with the election of Bill Clinton," said Grant Ferrier, editor-in-chief of the Environmental Business Journal, based in San Diego.

Air quality, hazardous waste, water quality and the ongoing Superfund program are all areas which could see increased activity, Ferrier said.

One local company poised to benefit: Torrance-based International Technology Corp., analysts said.