Where to invest now

Kiplinger's Personal Finance Magazine, Jan, 1998 by Manuel Schiffres

* World Color Press (WRC, NYSE, $25) is acquiring many smaller printers who are having trouble keeping up with technology in that field. Dutton expects earnings pr share of $1.80 in 1998, up 13% from '97. Cash flow is even stronger, he says.

SMALL GROWTH COMPANIES

William Keithler, who runs Berger Small Company Growth fund, specializes in small, rapidly growing companies. Stocks that attract him for 1998:

* AHL Services (symbol AHLS, Nasdaq, recent price $20) provides contract staffing services, mainly to airlines -- baggage security, cargo handling and other tasks. AHL is beginning to move beyond the airlines, says Keithler. He says the company could earn 80 cents per share in 1998 and generate 35% a year earning growth over the next three years.

* Fairfield Communities (FFD), New York Stock Exchange, $42) is one of the largest vacation time-share companies. New management boosted profitability. Fairfield could earn $1.80 per share and should show profit growth of 25% to 30% a year long term.

* Kulicke & Soffa Industries (KLIC, Nasdaq, $28), the world's biggest producer of semiconductor-assembly equipment, has been hurt by fears of a slowdown in sales to Asia. But Keithler says Asian chip companies will continue to buy equipment to remain competitive. Kulicke should earn $2.30 to $2.35 per share for the '98 fiscal year ending September 30. Keithler sees longer-term grown at 25% to 30% a year.

* QuadraMed (QMDC, Nasdaq, $23) develops financial and decision-making software for health care providers. A new product that helps companies discover when they're not in compliance with medicare regulations could be a winner, says Keithler. He expects earnings per share of 70 cents in 1998 and growth of 35% per year over the next three years.

* Whittman-Hart (WHIT, Nasdaq, $30) provides computer-consulting services to large companies. "I'm really buying the management team for participation in a huge growth industry," says Keithler, Earnings could reach 70 cents per share in '98, with annualized longer-term growth at 40%, he says.