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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.

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.

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.

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.

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.

The continued growth in demand is benefiting both the lodging and hotel sectors of the hotel/gaming industry in the US, but the hotel supply is catching up and the market is full in 1999. There have been several new openings in the high end of the casino market in Las Vegas, NV, since 1997 and this industry segment has consolidated, as well. Investors need to select only those stocks in this industry that are the most stable and provide the most outstanding brands and services.

Stocks in the entertainment industry have had a mixed performance in 1999 due to the many acquisitions and mergers in the industry and also to technology. Technology has been influential in changing the nature of the industry and its various segments, and the Internet many open many new opportunities for the industry, also. New technology and high demand have made these stocks more timely in 1999 and investors may find some suitable choices in this sector.

The specialty chemical industry is comprised of a wide variety of companies which serve almost the entire spectrum of the US economy, and. earnings for the industry as a whole have languished due to the troubled gobal economy and competition within the US during 1998. This can be expected to continue in 1999, but an economic recovery for the industry is forecast through the years 2001-2003. These stocks are not timely in 1998 and 1999, but several have good prospects for the next three to five years.

The ground rules for the natural gas pipe line and gas utility industries have been revised by state and federal regulators with the purpose of greater competition through deregulation. The financial returns from deregulation have been modest so far in 1998, but the dynamics of the natural gas (distribution) industry has been altered and wider margins are forecast for the future. Prices for these stocks remain stable and should be sought mainly by income investors.

The domestic US economy has become less important to advertising in the 1990s as the industry has become more international in order to support the global product efforts of its clients. The advertising industry has also entered into market-services disciplines, among other positive trends, and the industry is also going under consolidation, as well. The Interpublic Group and Omnicon Group are two of the better selections among advertising stocks that are compelling investments.

Stock prices for the hotel and gaming industry have declined in 1998, but recent elections in several states will help some casinos. Many believe that earnings and stock price growth will best be aided by expansion, especially in Las Vegas, NV, and merger and spinoff activity has increased in the industry, as well. These stocks are not timely in late 1998, but several are attractive for some investors.

There appears to be no overriding trends for entertainment industry stocks, even they they have not escaped the stock-market volatility of late 1998. However, demand remains strong, as does competition, even though larger companies are beginning to dominate the industry, and there have also been some major mergers in 1998. The industry is growing, but investors must select companies with good strategic plans and shares of the market.

The recreation industry is expected to have a good holiday season in 1998, and several companies in this sector will have double-digit growth. The industry is also expected to remain healthy through 1999 due to positive demographics and the expansion of cruise fleets, but investors need to be wary of recreation fads. These stocks are not timely in late 1998, but several have potential through the next three to five years.