David Nichols Recommends the Following Stocks: Cyberonics, Annaly Mortgage and Fargo Electronics.

Business Editors

CHICAGO--(BUSINESS WIRE)--Dec. 17, 2002

The demographics are telling David Nichols that the next bull market may not come until 2018! But don't worry, because there are plenty of opportunities to make money in the meantime with this Pro's stock recommendations on Cyberonics (NASDAQ:CYBX), Annaly Mortgage (NYSE:NLY) and Fargo Electronics (NASDAQ:FRGO), which should all be pretty hot in 2003. Click here for the full story exclusively on Zacks.com: http://featuredexpert2bw.zacks.com/

Here are the highlights from the Featured Expert column:

Cyberonics (NASDAQ:CYBX) manufactures the medical device that provides vagus nerve stimulation, an effective, side-effect free way to treat drug-resistant epilepsy. Word of mouth about VNS is finally taking off: Recent reports show that VNS results get even better over time, and a few months ago in a real coup for the company, Medicare announced it would reimburse patients $19,500 for Cyberonics' VNS device. The company reported terrific quarterly results with record profits, and raised its forecast for the next two years.

Nichols generally focuses on tech-related stocks and capital appreciation, but that doesn't dim his fondness for real estate investment trust Annaly Mortgage (NYSE:NLY). REITs distribute almost all their capital gains as dividends -- and in 2002 Annaly increased its dividend every quarter; annually it's now $2.72 a share which at this share price is a yield of 14.40%. With interest rates so low, Nichols won't be surprised if Annaly doesn't raise its dividend for another few quarters, or even drops it slightly.

Fargo Electronics (NASDAQ:FRGO) has a great niche mostly to itself. It makes card printers/ encoders that create personalized plastic identification and access cards complete with digital images and text, lamination, and electronically encoded information. The company has a finger in the government pie, and owns a chunk of the fast-growing computer-chip encoded "smart card" market, which can only get bigger with the growing concern over government and corporate security. Fargo's impressive third-quarter income was $2.4 million, up 60% over last year, with revenue up almost 15%.

Get six more stocks that look hot for 2003, plus some of David Nichols' stock suggestions for the holidays and his "Defense Spending Will Be Huge" special report by clicking: http://featuredexpert3bw.zacks.com/

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