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Stock picks by the pros
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December 16, 1999: 12:09 p.m. ET
Intel, State Street, Garden Fresh, Citigroup come in for praise
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NEW YORK (CNNfn) - Financial services and technology companies, and a food services firm headed the list of equity analysts’ and money managers’ top picks Thursday.
Here are some of the stocks recent guests on CNNfn are buying and why:
"Financial-services companies are just not as beholden to interest rates as they used to be,” notes Patricia Chadwick, director of U.S. equities, Invesco.”
"They`re financial services, they`re not just banks lending on spread. And, so, I think that the big, well-rounded financial-service companies, including your big brokerage firms, some of which have done very well, Goldman Sachs (GS) and Morgan Stanley (MWD), Citigroup(C), I think that those stocks really could get much closer to a market multiple.”
"Whether it`s business to business,” says Marc Klee, portfolio manager, John Hancock Global Technology Fund, "or business to consumer, or even consumer to consumer like eBay (EBAY), [electronic commerce is] truly a real growth area.”
"Grainger (GWW) is a good example - they sell a lot of parts to different companies, more and more [companies] are doing that online. But the truth is it`s really being spurred on by companies like VerticalNet (VERT), which is really a .com that has made all of these individual little Web sites different kinds of vertical industry segments [which cater to a variety of business and consumer needs].”
Keep in mind, though, when looking for top-flight growth stocks, that "companies that come through on the top line, the revenue line, are the ones that the market [will be] paying up for. CMGI (CMGI) more than tripled their revenues and that`s really where it`s at right now.”
"I think technology is high-priced,” admits Bernadette Murphy, market analyst, Kimelman and Baird. "I agree that I think some of the financial service companies, the fee-based companies are looking attractive, like a Northern Trust (NTRS), Bank of New York (BK), State Street (STT). I think that [that is an] area [to look at]. I think that some of the restaurants are looking attractive, there`s some extra money around. We eat out more. Garden Fresh(LTUS), for example, is attractive. So I think there are [growth] areas [that fall outside the tech sector], you just have to search for them.”
"The most consistent thing I am hearing from my customers and clients,” admits Michael Farr, president, Farr, Miller & Washington, "is that they are scared they have so much money now. It`s a marvelous phenomenon - when they didn`t have a lot of money, they really didn`t worry about it. Now all of a sudden, through the market of the past couple of years, it has gotten to be a lot of money and now they are scared. What should they do about it? Should they protect it? Should they buy bonds? How do they go? We say stay the course, do not change a whole lot.”
"I`d buy some core good holdings; I like MCI WorldCom (WCOM), I like Intel (INTC), and I like Eli Lilly (LLY). They all had pretty good days. WorldCom didn`t move as much as the others. But I think good companies, with strong growth rates, great franchises, good management; will do very well in the long run.”
The views presented here are solely those of the analysts quoted. They do not represent the opinions of CNNfn on whether to buy or sell shares of a particular stock. 
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