Hot stockbrokers share their hottest picks; direct from the experts to you: free advice on investment strategies and buy-now stocks - Hot Investment Strategies - Cover Story

Black Enterprise, April, 1994 by Carolyn M. Brown, Frank McCoy

If you want to invest in the restaurant industry, Cracker Barrel Old Country Store Inc. is a stock worth looking at. This restaurant chain is located mainly in the South. They emphasize down-home cooking plus they have gift shops. This stock is now trading at $26.

For conservative investors who are looking for an alternative to low-yielding CDs, I would recommend three funds: Nuveen Insured Premium Income Municipal Fund, a closed-in tax-free fund currently yielding 6%; BlackRock 2001 Term Trust, currently yielding 8% and First Australia Prime Income Fund, currently yielding 10%. I have my 70-year-old father in this fund.

COLBERT: I think that The Walt Disney Co., being one of the last independent entertainment concerns, will really be a strong performer going into '94. Disney is a solid core, high quality company that has exceptional global opportunities. There's a good possibility over the next 18 months or so this company could experience a strategic action, like being acquired around $60 a share, and the stock should sustain double digit earning growths. The Disney franchise has never been questioned as far as the ability to continue to produce blockbuster animated films. In '91, they released the videocassette Fantasia, '92, it was The Beauty and the Beass; and '93 was Aladdin. Over the next two years, they're planning two new films: Pocahontas and The Lion King.

The Euro Disney problem is being handled, as well. The problem with the Euro Disney facility was the debt structure, not that the park wasn't making money.

I also like Alumax Inc. It's the fifth largest U.S. company in the aluminum marketplace. Although it's not that well-known, I feel that as institutional investors become more familiar with the earning power of Alumax, the stock is going to move forward in time. Although the shares are cheaper than Reynolds Metals Co. and ALCOA (Aluminum Co. of America), it has approximately the same price earnings per share.

DANIELS: I also like Disney. In the auto industry, I like Ford Motor Co. This company has had tremendous market share growth. It's been projected that the auto industry is going to sell about 15 million cars this year.

One of the things that is pushing the domestic market is the demand for utility trucks and minivans - both of which are dominated by the Big Three automakers. The Japanese have not developed that market yet. That gives us an edge. Also, the Big Three have a price advantage right now. I think that Ford probably will trade at $70 by year-end.

Another company that I like is The Coca-Cola Co. The reason I like Coke is because it's a household name. And we've been talking about the international market. Coca-Cola and Pepsi are very well-known overseas. I'm looking for Coca-Cola to trade in the mid-$50 range.

I also like Polygram Records. Polygram is a growing international entertainment company. They recently acquired Motown Records, which will increase their penetration of the domestic music business to 16%.

They are also getting involved in motion pictures, with an emphasis on African-American films. They're the company that produced Posse.