Roller-Coaster Ride

Black Enterprise, Oct, 2000 by Derek T. Dingle

SOURCE: ZACKS.COM

Stephen Humphrey, Lord Abbett Large Cap Growth Fund

                              Price at         5-Year Estimated
Company (Exchange: Ticker)    Recommendation   EPS Growth Rate

General Electric (NYSE: GE)      $53.38              14.7%
Corning (NYSE: GLW)              267.00              27.8
EMC (NYSE: EMC)                   85.50              31.3

General Electric, "With GE, we're talking about a company that is generating revenues of more than $126 billion. They are going to do total earnings of more than $11 billion, which is bigger than the GNP of a lot of countries. I look at GE as a director or maybe even a fund manager of terrific companies, from industrial plants to aircraft engines, from plastics to medical systems."

Corning, "The company got rid of Corningware and reinvented itself [after they recognized] that deregulation was coming to the telephone and the communication industry, and it was an opportunity for them and they got into it in a very strong way. Now, they are growing. A dominant company in fiber cable, they create the glass wire through which everything else flows, and also the amplifiers. Those are the two areas that they dominate."

EMC. "It is the dominant company in the enterprise storage market. Essentially, we expect that market to triple, over the next five years, to go from a $40 billion market to a $120 billion market. The big drive is the Internet All the transactions that happen on there basically have to be stored somewhere. For EMC, it doesn't stop there. Besides being dominant in that technology, they also dominate in the storage management and delivery of solutions."

SOURCE: ZACKS.COM

Nathaniel Carter, Lakefront Capital Investors

                              Price at         5-Year Estimated
Company (Exchange: Ticker)    Recommendation   EPS Growth Rate

Sara Lee (NYSE: SLE)             $19.06             10.2%
Compaq Computer (NYSE: CPQ)       29.00             27.3
Tricon Global Restaurants
  (NYSE: YUM)                     27.75             13.9

Sara Lee. "They are heavily exposed in Europe. Basically, the company has been hurt by a weakness in the euro. They own Coach Leather Goods, Hanes Underwear, and household products such as Brylcream. New management came in. They have decided to IPO the Coach business and to sell off the Monarch Food Service business, which will generate about $2.5 billion, which they are going to redeploy in their core businesses. They are really focused on growing earnings and having quality revenues."

Compaq Computer, "Compaq is a manufacturer of PCs and servers and storage devices. It lost ground, over the years, to Dell, and even to Hewlett-Packard Gateway, and so forth, but they do remain the margin share leader. They brought in a new [CEO who's] better in tune with the needs of the corporate customer. They are doing some innovative things. They are developing streamlined Internet products."

Tricon Global Restaurants, "Triton was a spin-off of Pepsi-Cola when [Pepsi] decided to focus on their snack food and soda pop business. Tricon [which is the holding company for Kentucky Fried Chicken. Pizza Hut, and Taco Bell] is actually the largest restaurant group in the world, if you look at units, The company was spun off a few years ago and overloaded with debt, probably unfairly. They have been in a mode now of trying to pay that debt down, They have done that through selling off stores and trying to find highly motivated franchisees To purchase those stores and then use the proceeds to pay down debt."