Printer Friendly Announces that Kelley Wright Highlights the Following Stocks: MAF Bancorp, Pinnacle West Capital, and Weis Markets.

CHICAGO -- Kelley Wright says the market is overvalued, which is prohibiting an advance in the averages. In such an environment, investors must concentrate on specific companies that are undervalued, and Wright can help with his market and stock analysis. Read about MAF Bancorp (NASDAQ:MAFB), Pinnacle West Capital (NYSE:PNW), and Weis Markets (NYSE:WMK). Kelley Wright is editor of the Investment Quality Trends newsletter. Click here for the full story exclusively on

Here are the highlights from the Featured Expert column:

Investment Outlook from July 1

The Dow continues to retreat every time it rises to the 10,450 area. Perhaps it is coincidental with the release of economic data; perhaps it is caution and the lingering concerns about terrorism. Many pundits speculated the market would take off after the Fed meeting and the turnover of sovereignty to Iraq, yet here we are with a triple digit decline. Kelley Wright's thought, as he has opined previously, is the market is simply overvalued, which is all the deterrence required to prohibit an advance in the averages. His internal indicator of value is going on almost three years at extreme levels of overvalue. If not for extremely low interest rates, he has no doubt the averages would fully reflect the paucity of value.

MAF Bancorp's (NASDAQ:MAFB) history can be dated back to the founding of its principal holding, MidAmerica Bank. Started in 1922, MidAmerica has historically served residents in various immigrant communities throughout Chicago. Over its history, the bank expanded into a number of other businesses including an insurance agency and a residential real estate developer. At current levels, MAFB remains attractive based on its historic high levels of yield. Increasing earnings projected for the next year will further protect the dividend, which is already more than covered with a payout ratio of only 26%. As banks scramble to find alternate income streams to compensate for lost origination fees, investors keeping a close eye on fundamentals should find value amidst the tides of emotion.

Despite its name, Pinnacle West Capital (NYSE:PNW) is best known as the parent company to Arizona's oldest and largest public utility, APS. Pinnacle's current list of subsidiaries includes a regulated utility, a wholesale energy producer, a real-estate development company, and an investment company. These subsidiaries are organized respectively into three segments known as regulated electricity, marketing and trading, and real estate. A number of emerging factors may yet drive shares closer to the company's historic high yield of 5.0%. These include a changing interest rate environment, recent "grid disturbances" which forced the shutdown of a power plant, and the pending rate matter before the Arizona Corporation Commission. Because of these factors, Wright and his team are reluctant to settle for the company's current price, but will find it increasingly attractive should the price drop further.

Weis Markets (NYSE:WMK) began over 92 years ago as "Weis Pure Foods." Modern Weis Market stores are operated not only under the company's namesake banner, but also under the names of Mr. Z's Food Mart, King's Supermarkets, and Cressler's Marketplace. The company's current 154 locations offer groceries, floral arrangements, bakery items, and health & beauty products. At the end of the first quarter, WMK announced its sales had increased 2.3%, bringing total revenue for the quarter to $520.7 million. Shareholders were pleased to see a corresponding increase in earnings, raising EPS up to $0.60. The company's ongoing campaign of share repurchase was expanded with the authorization of a new program to buyback one million shares of common stock. New construction will include seven new superstores, to be completed in 2005. In addition, the company will remodel 14 existing stores, and expand floor space at nine other locations.

Read Kelley Wright's complete investment outlook, and make sure to get a lot more information on the above-mentioned companies, by clicking:

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Publication:Business Wire
Date:Jul 8, 2004
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