Lehman’s Value Picks Start Off Right
Brokerage Lehman Bros. unveiled its “10 Uncommon Values” stocks for 1999-2000 on Thursday--and they all got off to a good start, posting gains for the day.
Historically, these “values” have lived up to their name. Taken as a group, they have beaten the performance of the Standard & Poor’s 500 index most years.
The 10 stocks that Lehman selected a year ago, for example, returned 51.2% through Wednesday, while the S&P; 500 gained 21.1% over the same period.
This year’s 10 picks: America Online (ticker: AOL; close and change: $112.13, up $2.13); Intel Corp. (INTC; $62.88, up $3.38); AT&T; Corp. (T; $56.63, up 81 cents); KLA-Tencor Corp. (KLAC; $68.94, up $4.06); Firstar Corp. (FSR; $29.44, up $1.44); Eli Lilly & Co. (LLY; $74.88, up $3.25); Ford Motor Co. (F; $58.56, up $2.13); Microsoft Corp. (MSFT; $91.19, up $1); General Instrument Corp. (GIC; $46, up $3.50); and Tyco International (TYC; $98.38, up $3.63).
“Our selections for the Uncommon Values portfolio reflect good old-fashioned bottom-up stock picking in which we identify those common stocks that are poised to outperform the broader market throughout the 12-month life of the portfolio,” said Jeffrey Applegate, chief U.S. investment strategist and chairman of the panel that selects the stocks from analysts’ recommendations.
In choosing these stocks, Lehman’s equity analysts offer their top recommendations for the coming 12 months. They are then reviewed by the research department’s investment policy committee and, from that list, the top 10 are selected as the current Uncommon Values.
