Investors pick up stock tips at Money Show

Kevin Rademacher

Friday, May 16, 2003 | 11:28 a.m.

Amid a tough economy and a prolonged stock market slump, investors still want a good stock tip.

That was clear on Thursday in the final hour of the Las Vegas Money Show. Attendees packed a Las Vegas conference room to hear executives from Standard & Poor's give their take on the investment world.

The crowd listened quietly as Standard & Poor's Senior Director David Braverman outlined the prospects for the economy. The same crowd began tedious note taking as Stephen Biggar, a Standard & Poor's research director, began outlining his top-ten stock picks.

Once the stock picks ended, the majority of the crowd clamored for the door, ignoring Joel Friedman, director of mutual fund services, as he began his presentation.

Julia Haas of Palm Desert, Calif., said she got what she wanted and was leaving early to find a new hotel room.

"I did get some good information," she said, dismissing the mutual fund presentation. "I don't believe in mutual funds anymore. If I had a billion dollars to invest, I bet I could make money too."

During the presentation, Braverman said the nation's troubled economy was not out of the woods yet. He said the 6 percent unemployment rate is likely to climb as high as 6.2 percent before reaching its peak. Economic growth, which hit 4 percent four years ago, is likely to stay trapped at 2 percent to 3 percent for the next several quarters.

"We see positive growth, but slow growth," Braverman said.

Distrust of corporate disclosures and terrorism concerns will continue to slow the economy, Braverman predicted. He also pointed to concerns over the housing market.

"Interest rates have nowhere to go but up," he said. "By next year, our view is that rates will start rising."

While there may be additional bumps in the road, the stock market may be on the rebound, Braverman said. He added, however, that the fast gains investors demanded a few years ago are gone.

"If the Nasdaq (market) was to rise 10 percent a year, it would take 13 years to get back to 5,000," he said. "You have to take a long-term investing approach, but good things are going to happen."

Biggar's stock picks followed a diversified approach, citing medical and pharmaceuticals with Martek Biosciences Corp., Boston Scientific Corp. and Pfizer Inc.; oil exploration with Nabors Industries; and construction with Jacobs Engineering Group.

He also singled out the finance industry with Compass Bancshares; entertainment with Comcast Corp. and USA Interactive; food with dairy giant Dean Foods Co.; and beauty products with Alberto-Culver Co.

Finding good investments is not easy, Biggar said.

"We have about 1,100 companies we cover right now, and only about 100 are rated five stars," he said.

It's no mistake that Las Vegas gaming companies are not on the list, Biggar said.

"We are still thinking that travel and tourism has not really come back yet," he said. "Everything is still an 'if.' If a terrorist or if something like SARS (severe acute respiratory syndrome) happened ... We are just not sure yet. ... We are just not of a mindset that travel and tourism are about to turn the corner."

Attendees walked out of the convention weighed down with bags literature and with minds full of opinions.

"There's just more information that you can handle," said Dan Healy of Hesperia, Calif. "It's definitely overwhelming."

Jay Tobler, a Las Vegas resident, agreed.

"There's a lot of conflicting opinions," he said. "You just kind of have to sit down and crystalize your thoughts in an economy going through uncharted waters."