Geraldine Weiss Highlights the Following Stocks: Mercury General, Superior Industries, General Motors, and Ford.Business Editors CHICAGO--(BUSINESS WIRE)--June 20, 2003 Geraldine Weiss warns not to buy into the hype, but to buy value stocks Value stocks Stocks with low price/book ratios or price/earnings ratios. Historically, value stocks have enjoyed higher average returns than growth stocks (stocks with high price/book or P/E ratios) in a variety of countries. . Get a pair of undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. recommendations with solid dividends that are set to break out. Read about Mercury General (NYSE NYSE See: New York Stock Exchange :MCY MCY Sunshine Coast, Queensland, Australia - Maroochydore (Airport Code) MCY Machine Cycle ), Superior Industries (NYSE:SUP), General Motors (NYSE:GM) and Ford Motors (NYSE:F). Click here for the full story exclusively on Zacks.com: http://featuredexpert2bw.zacks.com/ Here are the highlights from the Featured Expert column: Since its founding in 1961, Mercury General (NYSE:MCY) has become one of the leading independent agency writers of automobile insurance in California. Although Californians still comprise the majority share of MCY's customer base, the company has made moves to expand into several other states since 1990. In 1999, EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. began a steady decrease from a high of $3.22 in the previous year to a low of $1.21 in 2002. This year should mark a turnaround for Mercury, which has recently found approval from regulators for several rate increases. At a recent price of $46, MCY is historically undervalued with a downside risk Downside Risk An estimation of a security's potential to suffer a decline in price if the market conditions turn bad. Notes: You can think of this as an estimate of the amount that you could lose on a stock or other investment. of only 4% to a low price of $44 and high yield of 3.0%. Low debt and a price trading close to 2x the current book value provide important indicators of value. Other problems notwithstanding, increasing policies and the rates charged for them should have a manifest impact on fiscal 2003 earnings. If you drive a late model American automobile, the chances are you are riding on aluminum wheels made by Superior Industries (NYSE:SUP) of Van Nuys, California. Comprising the vast majority of its business, aluminum wheels are currently installed on approximately 59% of all new vehicles (not including heavy trucks). Aluminum wheels are big business for Superior. Over the last 45 years SUP has built an Original Equipment Manufacturer (OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and ) relationship with many of the world's leading automobile companies. Its top two customers: General Motors (NYSE:GM) and Ford Motors (NYSE:F) have over 150 different wheel programs on record all with varying expiration dates Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. . The close of the first quarter saw across the board records for Superior. Revenues from wheels increased 11.3% or $20.5 million from $181.8 million during the first quarter of 2002. Net income for the first quarter saw an amazing a·maze v. a·mazed, a·maz·ing, a·maz·es v.tr. 1. To affect with great wonder; astonish. See Synonyms at surprise. 2. Obsolete To bewilder; perplex. v.intr. 29.7% gain of $5.1 million from $17.2 million earned during the same quarter in 2002. Last month SUP officials also announced a 10% increase in annual dividend to $0.55, marking the 20th consecutive year the dividend has been raised. Learn more about the above-mentioned companies, and get an additional recommendation from Geraldine Weiss along with a complete list of undervalued stocks An undervalued stock is defined as a stock that is selling at a price significantly below its intrinsic value (finance). For example, if a stock is selling for $50, but can be determined to be worth $100 based on future cash flows, then it is an undervalued stock. by clicking: http://featuredexpert3bw.zacks.com/ About Zacks Featured Experts To be a successful investor you need professional advice. Experts who know what they're talking about and can help you achieve your financial goals in good markets...and especially in bad ones will help you improve your portfolio. That is why Zacks Investment Research Zacks Investment Research A firm that compiles earnings estimates and brokerage firm investment recommendations for thousands of publicly traded firms. has assembled the best investment experts in the business to offer their powerful advisory newsletters to you on all the major investment topics: Stocks, Mutual Funds, Bonds, Options, Futures etc. Recommendations from Featured Experts Highlighted in FREE Investment Newsletter The best way to tap into the powerful advice from these experts is through our free weekly e-mail newsletter, "Profit from the Pros". Each week we highlight several Featured Experts in this free e-mail See Internet e-mail service. newsletter. 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Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security. |
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