Search

Stocks in the machinery industry have fallen due to poor sales in 2000 and 2001. The companies that comprise this industry have cut staff and production as a result. These stocks are best suited for long-term investors over the next three to five years.

The cable television industry provides services to consumers through technology that both the industry and consumer own. The future of the industry is not certain, but the interest rate and regulatory climate has become more favorable. These stocks are not timely in 2001 and are risky for investors.

The toiletries and cosmetics industry is having good earnings in 2001, and this is expected to continue. There are growth opportunities for the industry both in the US and overseas through 2004-2006. These stocks will perform with the market in 2001 and several have potential over the next three to five years.

Slow demand has led to lower earnings in the auto parts industry in 2001 and this is expected to continue for the near future. Both original equipment makers and the aftermarket segment are not doing well. These stocks are not timely for 2001, but several have potential for the next three to five years.

The growth of the telecommunications market in the 1990s has led to more capital equipment than the industry can absorb in 2001, with a resulting financial weakness. Industry consolidation and new technology are expected to remedy this in the future, however. Investors need to be selective in this industry.

Local telecommunications markets are doing well, but long-distance operations are ailing. Web and Internet-based companies still show promise, and wireless communications has penetrated only 39% of the market. Growth and risk-tolerant investors should find several opportunities in this sector.

Stocks in the specialty chemicals industry are not timely for early 2001, but business conditions may improve for the industry soon. There is no clear direction for the industry, but there has been some consolidation of niche markets. Most of these stocks are expected to lag the market in 2001 and early 2002.

Good profits in the exploration, production, and marketing areas have made natural gas (diversified) stocks timely during the first six months of 2001. The California energy crisis has affected the industry, but more natural gas facilities will be needed in the future. Several of these stocks are worthwhile for investors.

Stocks in the information services industry have done well in early 2001 in spite of the slowing US economy. Economic worldwide exposure and the Internet have also become more important. Investors must be selective when evaluating these issues for commitment.

Profits for advertising agencies were lower in the 1st qtr of 2001, due mainly to smaller client fees. Many companies are spending less on advertising than in the past, and this has hurt the industry. There are several good issues for the future in this sector, however.

Hotels have seen lower occupancy rates due to reduced business travel, and this is expected to continue. The cashless society is expected to have an effect on slot machines and casinos, and casinos have generally done well. Several stocks are expected to outperform the market in 2001, and others have promise for the next three to five years.

Stocks in the entertainment industry have not done well during the 1st qtr of 2001 and the industry is not timely. Many sectors of the industry are converging and further consolidation is to be expected. There are, however, several good selections in this area for investors to consider.

Many of the companies that comprise the various sectors of the recreation industry showed disappointing earnings in the 1st qtr of the year 2001. There are, however, several good stock selections for the coming year. Investors need to be selective as this industry covers a broad range.

Advertising agencies are expected to remain in a growth pattern in 2001, as they have been in the year 2000. There have been positive factors for this growth, which remain, but advertising spending may may decrease if the US economy slows. Investors should be selective when evaluating these stocks.

Differing financial conditions are being faced by the two different sides of the hotel/gaming industry with lower revenues from lower demand and from lower supply. The potential for growth for casinos is modest, but hotel stocks are expected to outperform the market in 2001. The appeal of these stocks for the next three to five years is not great.

The nature of the entertainment industry in the US has been enlarged since the 1990s, and the companies that will survive the economic slowdown of 2001 are those with a wide variety of revenue sources. Another significant trend is the larger Spanish-speaking segment of the US population. There are several good selections for investors in this sector of the economy.

Results for the various companies that comprise the recreation industry are expected to be hampered by the slowing of the US economy in the 1st qtr of the year 2001. There are, however, several good long term investments, but weather and other outside factors need to be considered. There are some timely stocks here, but investors need to be selective.

The specialty chemicals industry supplies products to every segment of the economy in the US and in the world, as many companies have a limited product range. Balance sheets in the industry have become more leveraged as debt has become the lowest cost method of financing. There are few timely stocks in this industry, but several have potential over the next three to five years.

Stocks in the natural gas (diversified) industry have become more timely in the 4th qtr of the year 2000, with exploration and production as major contributors to earnings. The energy industry has also converged and the tasks these company perform have become more diverse. There are several good issues for consideration by investors in this industry.

Nearly every sector of the US economy is served by the companies which comprise the specialty chemicals industry, and many of these must adjust their operations to meet different demands. Many of these companies have also turned to debt to meet capital requirements as their stocks have fallen out of favor with investors. Most of these stocks have limited short-term prospects, but several have appeal for the next three to five years.

Stock prices of the natural gas (diversified) rose due to net gains during the 1st qtr of the year 2000. Exploration for and production of natural gas are still the basic components of the industry, but several companies have also diversified into fiber optics and trading operations. These stocks are timely and many have potential for growth or dividend income.

Modest returns were posted by the toiletries and cosmetics industry in 1999, and there is promise for the industry for the year 2000. There are a number of constraints for the industry in the US, however, but consolidation will help the domestic market and there are several foreign opportunities as well. Investors should find several good issues in this industry.

Share prices in the cable TV industry have fallen slightly in 1999 and the year 2000, but progress on most fronts will likely change this. Continued consolidation, open access, divestiture of assets, and satellite communications are leading to better balance sheets in the industry. These stocks are timely for the year 2000, but most are risky and best suited for aggressive investors.

The environment has been favorable for the auto parts (original equipment) industry and it had a record year in 1999. Cost-cutting by the automobile industry in the US presents a challenge, and there seems to be little enthusiasm for these stocks in the equity markets. These stocks are not timely for the year 2000, but several individual issues have appeal for investors.

Stocks in the telecommunications services industry are timely for the the year 2000 even though some prices have slipped. Competition has arisen in both the local area and long-distance sectors, data and internet services have become more profitable, and merger activity has increased in the industry. Investors will find many growth stocks for consideration in this sector.

Lower earnings, rate reductions, and competition are some of the reasons that electric utilities have changed their dividend payment plans since 1995. Utilities are seeking other methods of increasing returns, including investing in non-utility business. Investors must make judgements on the industry on an individual basis.

Stocks of the specialty chemical industry are not timely in the 1st qtr of the year 2000 due to lackluster earnings, but this may change. There are prospects that profits may improve in the near future, however the costs of feedstocks and commodities are a potential obstacle. Investors need to evaluate these stocks on an individual basis as this industry comprises a wide variety of companies.

The natural gas (diversified) industry has become more timely in late 1999 and early 2000, and production of natural gas has increased. The use of pipeline rights of way for fiber optic cable has become a major industry trend, and mergers, acquisitions, and divestments have remained important, also. Investors should find many good stocks in this sector for consideration.

Healthy worldwide business in the 1990s has allowed the stocks of the advertising industry to achieve impressive levels, and this is expected to continue in the year 2000. The use of the Internet and the World Wide Web, new and alternative markets, and consolidation are three of the more important trends in the industry. Many of these stocks are recommended to investors for the year 2000 as having good price potential.

Earnings for the hotel industry are expected to be steady and respectable for the year 2000 with strong pricing and earnings trends, along with operating efficiencies. The gaming cycle in Las Vegas, NV, may have peaked, with the growth of California's Indian casinos, but there are new gaming projects planned for Atlantic City, NJ. Most stocks in these industries are neutral for the year 2000, but several have potential for the next three to five years.

The recreation industry is cyclical in nature, with earnings following the general economy. Cruise lines are adding more capacity to their liners, exercise and heal clubs are continuing to remain popular, but the toy segment has seen a lean year in 1999, and the bicycle industry is also importing more. These stocks are in the middle range of timeliness and investors need to be selective.

Stocks in the machinery industry have suffered early in the year 2000 with interest rate fears and profit-taking affecting the stock market as a whole. Demand is good for these products, however, except in a few sectors, and managers are focusing on cost controls, also. Merger activity in the industry is continuing, but investors will probably find better opportunities in the future.

Stocks in the toiletries and cosmetic industry performed well in 1999 and are also expected to perform well also in the year 2000 with the favorable US economy in the coming year. The industry, however, needs to seek major innovations as the opportunities in the future are risky as well as alluring with mature markets and the strong American dollar. Investors need to select those stocks with global networks, sustainable market share, and strong brands.

The automobile parts (original equipment) industry had a good year in 1999 with strong demand, due to high automobile productivity, and good earnings, and the year 2000 is forecast to be favorable, also. Manufacturers, however, need to focus on market share in the future as US and international automobile sales will not be as high in recent years. Investors will find some good selections in this industry for the next three to five years, but these stocks are not timely for the year 2000.

Regional transmission organizations (RTOs) in the US are being required to improve reliability and act independently of market forces by the Federal Energy Regulatory Commission under FERC Order 2000, and electric utilities are encouraged to join an RTO but not be allowed to dominate it. Nuclear power plants are no longer competitive and many are being sold off by utilities at a fraction of their value. Investors should choose utility stocks with good operating records, low-cost generation capacity, and strong finances.

Stocks in the telecommunications services industry have performed well in the 4th qtr of 1999 due to becoming more growth oriented, gaining a broader market in the US, and industry consolidation. The combination of services, such as data, Internet, video, and voice, over any service distance has become an important industry segment, as is the Wireless Application Protocol in Europe as well as the US. Investors will find many that there are many conservative and growth stocks in this industry for investigation.

Soft demand in the global economy and a competitive market have led to poor earnings in the specialty chemicals industry and sluggish stock performance. However, industry restructuring, better prices for raw materials, and greater demand from outside the US may improve earnings prospects in the year 2000. These stocks are untimely in the 4th qtr of 1999, but several issues may be of interest to investors.

The improved global economy has helped stocks in the advertising industry increase in value in 1999 and the troubled economic areas are beginning to improve and this having a good effect on the US. The growth of non-traditional business areas related to advertising and the continued consolidation within the industry are the two most notable trends during the year, and this is positive, also. Investors need to select stocks of the larger companies which will most likely benefit from the ongoing economic trends.

The short- and long-term horizon for the US hotel industry has changed in 1999 with expansion and the casino industry is expanding capacity, as well. The gambling industry in California is also expanding with Native American casinos offering new services and Nevada operators seeking to be part of the action. These stocks are timely in the 4th qtr of 1999, but few have potential for the next three to five years.

Consolidation within the entertainment industry is continuing in 1999 and the targets for many of the mergers are becoming bigger and the finances of some of the bigger organizations are improving with this trend. The rules for television broadcast ownership are in the process of changing and the Internet is having an impact on the industry, as well. These stocks are not timely in the 4th qtr of 1999 and investors must be selective in their choices.

Recreation industry stocks are timely in the 4th qtr of 1999 due to low interest rates and the lack of inflation in the US economy, along with the toy fads in the 1999 Christmas selling season. Motor sports are forecast to become more popular in the year 2000, but the bicycle industry is facing tough competition from foreign makers. Several stocks in this industry are timely for 1999 and the year 2000 and have appreciation potential for the next three to five years.

The weaker US dollar and likely interest rate hikes have hurt machinery industry stocks during the 3rd qtr of 1999 and the industry has become less timely during this period. Overseas markets have gown, as has the power generation market, truck production has risen, but depressed commodities prices have had a negative impact on other sectors. Several of these stocks have growth potential for the long term, but most should track the market in 1999 and the year 2000.

Stocks of the original equipment automobile parts industry have not been able to sustain their spring rally in 1999 in spite of good earnings due to record sales in the automobile industry. The auto parts industry should also benefit from outsourcing by automobile makers and labor problems in the future should also abate. These stocks are expected to perform with the market in 1999 and the year 2000 and also have good price potential for the next three to five years.

Telecommunication services stocks have fallen during the 3rd qtr of 1999 due to Year 2000 concerns, the deficit, the weaker US dollar, along with higher interest rates and other factors. Consolidation and deregulation both are continuing within the industry, and new services and foreign markets are having beneficial effects on the industry, as well. There are several stocks in this industry that will appeal to investors during the 4th qtr of 1999 and for the next three to five years.

Many US electric utilities have sought economic opportunities abroad due to rate freezes and reductions, as well as slow sales growth, at home, and have made acquisitions overseas. Nuclear facilities have also become a problem for many utilities as they cannot generate electricity efficiently or economically with rate competition and possible accidents. Investors need to be selective before making commitments with these stocks.

Adverse economic conditions in Latin America, Russia, and the Pacific Rim countries have had a negative impact on some of the companies that comprise the toiletries/cosmetic industry in 1999. The best prospects for the retail segment of this industry in 1999 is in the US, but there are good opportunities for growth in several select foreign areas. These stocks are expected to perform with the market in 1999 and the year 2000, but the price potential for the next three to five years is limited.