Wall Street Marathon

IN OUR JANUARY ISSUE, WE CHALlenged our readers to pit their financial savvy against that of nine local investment professionals and a class of whiz kids at the University of North Texas. Starting with an imaginary $250,000, contestants were to pick five stocks or mutual funds in which to invest $50,000 each, with at least one investment in a local company. No trading or mid-term cashing out would be allowed. Short-term growth is the name of this game. The contestant-amateur or pro-who crosses the finish line with the most money on December 31, 1995, is the winner. In the upcoming months, turn to our “Dallas at Large” section to check the status of the race.

Now, let’s introduce you to the pros and their picks. (Stock quotes are based on closing prices on January 20, 1995.)

Steve Smith, CFA, senior vice president, Nationsbank. “The investment discipline that I employ is one that identifies companies with very positive profit momenturn whose shares trade at a historically low price-to-earnings ratio. The shares of these companies normally provide superior investment returns.”

●Pittston Services (PZS), NYSE, 26 3/4.. Transportation company. Owns Brinks Security and Burlington Express.

●Chesapeake Corporation (CSK), NYSE, 33 1/2. A paper company.

●IBP Incorporated (IBP), NYSE, 30 Vs. Formerly Iowa Beef Processors; processes beef.

●Micron Technology (MU), NYSE, 45 5/8. Computer chip maker.

●Local: Belo AH A (BLC), NYSE, 59 7/8. Media company; owns Dallas Morning News.

Stacy Oelsen, senior vice-president of institutional sales, Smith Barney. “There is a good balance in this portfolio: 20 percent medical; 20 percent technology; 20 percent financial; 20 percent automotive; and 20 percent industrial.”

●CIDCO INC. (CDCO), NASDAQ,

24 5/16. Makes telephone equipment to support Caller I.D. services.

●Thermo Cardiosystem (TCA), AMEX, 18 3/8. Only FDA-approved heart assist devices company.

●Partner Reinsurance Holdings {PTREF), NASDAQ, 19 Vs. Bermuda company formed to provide property catastrophe insurance.

●Bailey Corporation (BAIB), NASDAQ, 8 Vs. Makes plastic automotive components.

●Local: USA Waste (UW), NYSE, 11 3/4. Waste management company.

Kay Self, associate vice-president for investments for Prudential Securities, Inc. “I believe we have worldwide growth and that all of these companies will benefit.”

●Westinghouse (WX), NYSE, 13 Vs. Electronics, electrical energy, construction, broadcasting.

●Philips N.V. (PHG), NYSE, 32 1/8. Dutch electronics, consumer medical, and industrial electronics, lighting and semiconductors.

●Merck and Company (MRK), NYSE, 37 3/4.. World’s largest drug company for humans and animals.

●Biomet, Inc. (BMET), OTC, 14 3/4. Makes health care products used by orthopedic specialists in therapy.

●Local: Southwest Airlines (LUV), NYSE, 18 5/8. Air carrier specializing in low-cost airfares.

Bill Barker, senior vice president for investments, Rauscher Pierce Refsnes. “The weightings are heavily skewed to energy and industrial equipment, two areas I believe will do well in 1995. For $250,000,I would prefer more stocks and some diversification, but that’s not the purpose of this particular effort.”

●Battle Mountain Gold (BMG), NYSE, $10 1/8. Gold.

●Kirby Corp. (KEX), AMEX, 16 1/2 Barge transportation.

●Weatherford International (WII), NYSE, 9 1/4. Oil-field tubular goods.

●Pogo Producing (PPP), NYSE, 17 1/2. Natural gas producer.

●Local: Trinity Industries (TRN), NYSE, 33 1/2. Rail cars and boats.

University of North Texas teacher DOUG Van Eaton and his Finance students.

“Two closed-end funds which trade at relatively large discounts. Selling pressure has been strong on South American equities, but Chile is not Mexico. The students like technology issues- Motorola is the best and CYRIX is the most beat up, price-wise. Waste services is probably the worst performing group over the last few years. This may finally change.”

●Jundt Growthfund (JF), NYSE, 13 3/4. Closed-end stock fund.

●Chile Fund (CH), NYSE, 45 1/8. Stock fund.

●Motorola (MOT), NYSE, 61 1/8. Electronics.

●USA Waste Services (UW), NYSE, 11 3/4. Waste services.

●Local: CYRIX Corporation (CYRX), NASDAQ, 22 1/4. Semiconductors.

Joe Ondris, Kemper Securities, Inc. “The stocks were selected for the potential growth that I feel this mixture of equities will bring 12 months out.”

●Promus (PRI), NYSE, 31 1/2. Builds casinos and hotels.

●Variflex (VRLX), OTC, 13 1/8. Makes Inline roller-skates.

●Westinghouse (WX), NYSE, 13 1/8. Electrical, broadcasting, and finance, services and products.

●Casino Data (CSDS), OTC, 13 7/8. Gaming.

●Local: Sterling Software (SSW), NYSE, 36 5/8. Computer.

Anita Mills-Berry, president, Lynmark Financial Group, Inc. “Mutual funds provide instant diversification because they invest in many companies. However, individual stocks, if chosen carefully, can outperform mutual funds,”

●AIM Aggressive Growth Fund (AGRSVP), mutual fund, 28,67. High 10-year average return, Morningstar rated among highest earning funds for 1994

●Kaufmann Fund (mutual fund) 3.75. High returns last five years and among 10 highest earning funds year to date (1994.)

●Scientific Software (SSFT), NASDAQ 6 1/4. One of world’s leading suppliers of computer software to petroleum/pipeline companies.

●Checkers Drive-In Restaurants (CHKR), NASDAQ, 2 1/8. Double drive-through hamburger stands.

●Local: Search Capital Group, Inc. (SRGC), NASDAQ, 1 5/8. Retail consumer installment contracts.

Mark Johnson, financial advisor, Eagle Financial Planning. “The asset allocation 1 chose will take advantage of a good growth market this year.”

●Microsoft (MSFT), NASDAQ, 61 5/8. Computer software and programs. Microsoft has new products coming out in 1995

●Mesa (MXP), NYSE, 5 1/8. Natural gas production.

●Philip Morris (MO), NYSE, 57. Tobacco, food.

●Investment Company of America (1CA), mutual fund, 17.82. American Mutual Funds is a 60-year-old growth and income investment.

●Local: Electric and Gas Technology, Inc. (ELGT), NASDAQ, 2 7/16. Electrical, gas, defense, metal fabrication, plastics,

Mike Mikeska, vice-president for investments, Southwestern Securities. “The bulk of my portfolio has a Southwest flavor. The stocks were selected with the idea that we could have a difficult market in 1995. This defensive allocation could excel under these conditions.”

●Centex Corporation (CTX), NYSE, 22 3/4. Home building, construction products.

●Schlumberger, Ltd. (SLB), NYSE, 53 1/8. Oilfield services, electronics.

●Calvert Strategic Growth Fund (CSGFX), mutual fund, 17.15. Aggressive growth mutual fund.

●CYRIX Corporation (CYRX), NASDAQ, 22 1/4. Manufactures computer processor products.

●Local: Sports Supply Group (GYM), NYSE, $11 1/2. Markets sports equipment by direct mail; chosen to provide equipment for 1996 Summer Olympics.

Perry Lyons, stockbroker, A.G. Edwards and Sons, Inc. “This is a diversified portfolio, with K-Mart representing the retail trade; Westing-house, heavy manufactoring; Gaylord, the paper industry; Southwestern Lite, the financial sector; and Exxon, natural resources.”

●K-Mart Corp. (KM), NYSE, 13 1/2. Discount retailer.

●Westinghouse (WX), NYSE 13 1/8. Manufacturer of electrical equipment.

●Gaylord Container (OCR), AMEX, 9 1/8. A paper maker.

●Southwestern Life Insurance (SLC), AMEX, 1 3/8. Life insurance.

●Local: Exxon Corp. (XON), NYSE, 62 3/4. Integrated oil and gas company.