Saturday, June 7, 2003

Portfolio Panel picks



Total returns are calculated 12 months and 24 months through Friday, and include reinvested dividends. The S&P 500 fell 2.3 percent from one year ago, and 19.5 percent from two years ago, on a total return basis.


Denise Ingersoll

Title: Vice president of investments, Robert W. Baird Private Investment Management Group, Dayton.

Pick: Marsh & McLennan Companies Inc. (MMC), insurance broker.

Why: "They had better-than-expected first-quarter earnings; they recently raised their dividend; their financial assets are largely cash. ... If you get any turnaround at all in the market, that would help their bottom line."

May 2002 pick: Electronic Data Systems Corp., preferred shares, down 42 percent.

May 2001 pick: Kimberly-Clark Corp. (KMB), down 8.8 percent.


Madelynn Matlock

Title: Vice president and director of international investments, Huntington National Bank.

Pick: Aventis (AVE-ADR), French pharmaceutical company.

Why: "It's not an extraordinarily high-profile company, even though it's one of the largest global players out there. The biggest product is Allegra. ... They also have a very broad, deep pipeline of new drugs. They do things in every area: cardiovascular, oncology, diabetes, arthritis and vaccines. And ... with the aging of the developed countries, these are products that are going to sell like hotcakes over the next 25 years. The valuation is at a discount to most of the other drug companies, and compared to its own history."

May 2002 pick: Tesco Plc. (TSCDY), down 0.7 percent; and Secom Co. Ltd. (SOMLY), down 33.2 percent.

May 2001 pick: Axa SA (AXA-ADR), down 42.7 percent.


Sunil Reddy

Title: Equity analyst and portfolio manager, Fifth Third Bank.

Pick 1: Broadcom Corp. (BRCM), semiconductors.

Why: "It's a semiconductor company, which sells chips into broadband communications. It's in some very high growth areas. Their revenues last quarter, a third of their revenues were from emerging products."

Pick 2: Agilent Technologies Inc. (A).

Why: "It's a spinoff from Hewlett Packard. It's probably one of the top technology companies out there, but has just kind of stayed under the radar screen. It's got a lot of intellectual property."

May 2002 picks: Analog Devices Inc. (ADI), up 11.2 percent; BEA Systems Inc. (BEAS), up 6.2 percent.

No 2001 pick.


Dan Seiver

Title: Professor of economics, Miami University.

Pick: Cardinal Health (CAH).

Why: "They have a variety of health services. I think they actually will benefit in the long run from baby boomers' increased demands for physician services, hospital services, drugs and so on. These guys provide some services that make it more efficient to provide all that stuff. ... I don't like them for next month, but I think over the next three to five years they could do really well."

May 2002 pick: Cytyc Corp. (CYTC), down 3.1 percent.

May 2001 pick: Microchip Technology Inc. (MCHP), up 43.9 percent.


Greg Weirich

Title: Vice president, PNC Advisors.

Pick: MBNA Corp. (KRB), credit-card company.

Why: "If you believe that the economy is going to be getting better, and I do, credit losses will be going down. Their credit losses are, I think, the lowest in the industry, on average. They're trading at a reasonable multiple, about 13 right now. My estimates are they are going to grow somewhere between 15 and 20 percent long term. ... If you believe the market's going to be doing better, this stock should do a whole lot better."

May 2002 picks: Lowe's (LOW), down 4.9 percent; Washington Mutual (WM), up 16.2 percent.

May 2001 pick: Pfizer Inc. (PFE), down 20.5 percent.



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