Standing on shaky ground.Green's portfolio produces spotty returns The market may have recovered from last year's seismic third quarter, but some stocks are still a bit queasy QUEASY - An early system on the IBM 701. [Listed in CACM 2(5):16 (May 1959)]. , Just ask portfolio manager Isaac Green of Loomis Sayles in Bloomfield Hills, Michigan Bloomfield Hills is a city in Oakland County of the U.S. state of Michigan. It is located in the Metro Detroit area, nearly completely surrounded by Bloomfield Township; it also borders the city of Birmingham. As of the 2000 census, the city population was 3,940. . Out of the portfolio of five stocks he recommended last year, four have slumped in the erratic environment. Shares of Carmike Cinemas (NYSE NYSE See: New York Stock Exchange : CKE CKE Clock Enable (memory signal) CKE Carl Karcher Enterprises, Inc. (restaurant chain) CKE Certified Kitchen Design Educator CKE Catia Knowledge Engineering CKE Content and Knowledge Engineering ), a movie chain in Columbus, Georgia, plunged 50.4% since his recommendation. Competition from other movie chains and poor attendance hammered earnings and cleaved cleaved (klevd) split or separated, as by cutting. the stock price. A weak year for Hollywood and the emergence of multiplex theaters hurt trends in ticket sales, says Green. But he still finds the stock attractive. "Many of the factors that hurt the shares were temporary," says Green. "Carmike Cinemas is an exclusive operator in 62% of its market and dominant in 81% of its market." Sears, Roebuck & Co. (NYSE: S) also proved to be a disappointment. Over the past year, shares of the No. 1 U.S. department store fell 17.4%. By December, the Hoffman Estates, Illinois Hoffman Estates is a northwestern suburb of Chicago in Illinois. The village is located primarily in Cook County with a small section in Kane County, Illinois. As of the 2000 census, the village population was 49,495 and estimated to be 52,520 in 2003. , concern warned that sluggish clothing sales would result in lower than expected profits. The company's shares tumbled 3.5% the day management made the announcement. Pharmaceutical maker American Home Products (NYSE: AHP AHP Assistant House Physician. ) fell 25.9% since Green's last observation. And shares of Hasbro (NYSE: HAS) declined by 20.6% over the same period. The Pawtucket, Rhode Island Pawtucket is a city in Providence County, Rhode Island, United States. The population was 72,958 at the 2000 census. It is the fourth largest city in the state. The current mayor is James Doyle. Pawtucket was the birthplace of the American Industrial Revolution. , toy-maker recently acquired Tiger Electronics, which produces the popular Furby. Compaq Computers (NYSE: CPQ CPQ Compaq CPQ Conseil du Patronat du Québec (Canada) CPQ Configure-Price-Quote CPQ Conseil de Presse du Québec (Québec Press Council, Canada) CPQ Companion Parrot Quarterly ), the Houston-based information and technology company, gained 23.4%, buoyed by strong fourth-quarter earnings. But in early February, Compaq's shares fell after reports of a predicted slowdown in the PC industry proved accurate. Time will determine the fortunes of these and other highfliers.
A Lackluster Collection
Stock Current Price at Total
(Exchange Price(*) Recommendation Return
Symbol)
Hasbro Inc.
(AMEX: HAS) $27.75 $34.94 -20.6%
Carmike Cinemas
Inc. (NYSE: CKE) 16.13 32.50 -50.4
Compaq Computer
Corp. (NYSE: CPQ) 32.38 26.25 23.4
American Home
Products
(NYSE: AHP) 68.00 91.75 -25.9
Sears, Roebuck and
Co. (NYSE: S) 46.25 56.00 -17.4
Portfolio Average -18.2%
Current Value Est. 5-Yr.
of S1,000 Annual EPS
Investment Growth
Hasbro Inc. (AMEX: HAS) $ 794 13.7%
Carmike Cinemas Inc.
(NYSE: CKE) 16.13 496 10.6
Compaq Computer Corp.
(NYSE: CPQ) 32.38 1,234 19.9
American Home Products
(NYSE: AHP) 68.00 741 12.2
Sears, Roebuck and Co.
(NYSE: S) 46.25 826 12.7
Portfolio Average $4,091
(*) As of 3/17/993 |
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