Search

The medical supplies industry is expected to outperform the stock market through the summer of 2002, due to good revenue performance. Earnings growth is expected to remain steady. These stocks are timely for 2001 and 2002, but investors need to be selective.

Results for the tire and rubber industry have been weak in late 2001, due to the Firestone-Ford recall and other factors. Inventory levels have also been high with weak product demand. These stocks are expected to underperform the market through mid-2002.

A reduction of discounts and several price hikes by brewers have made economic conditions more favorable for brewers in the US. Industry consolidation is also continuing in 2001, and consumers have become more upscale in their purchases. These stocks are expected to perform with the market and several have potential over the next three to five years.

Consolidation and retrenchment in 2000 and 2001 have made the grocery store industry more competitive, although some costs are handicapping earnings. Several companies are taking steps to improve profits, however. These stocks have become more timely in 2001, but investors need to be selective.

Gold production gas remained stable since 1998, as has the demand side, but gold prices have increased modestly in the 2d qtr of 2001. The price of gold is unlikely to improve, unless unforeseen changes occur. Investors will find the industry challenging in 2001.

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.

Stocks of telecommunications companies around the world continue to plummet due to poor earnings. Operations throughout the industry in 2001 and 2002 will continue to be uncertain. These stocks are best avoided in 2001 and investors should seek opportunities later.

The automobile parts (replacement) industry in the US has consolidated over the last 20 years through the process of merger and acquisition. The increased complexity of automobiles and decreased demand for these products have been major factors, also. These stocks are not timely and investors should seek opportunities elsewhere.

Issues are presented concerning the performance of securities in the Cable Television Industry sector. Statistics detailing the performance of individual companies within the sector are included.

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.

Increased exposure to Internet-related services, along with the demand for lower prices and faster performance has has made the foreign telecommunications industry more timely in the year 2000. Acquisitions have also increased due to less regulation and greater competition within the industry, and this is likely to continue. Investors must be selective in their choices as recent share prices increases have lessened the industry's potential for the next three to five years.

Good fundamentals and increased prices allowed the alcoholic beverage industry to have a good year in 1999, and this is expected to continue. Consumption of beer is forecast to grow in the year 2000, and the tastes among wine drinkers will take an upward trend, as well. These stocks are expected to outperform the market in the year 2000, and several have growth potential for the next three to five years.

Stocks of the grocery store industry mainly declined in 1999 for a variety of factors, such as weak sales and the increased minimum wage. Online line services and home delivery of groceries are two of the newer trends in the industry in the year 2000. These stocks are not timely, but patient investors will find some buying opportunities for the next three to five years.

Gold prices have remained under $300-per-ounce in the year 2000 in spite of the agreement among European central banks to limit the sale of gold. Production of gold from Asian and South American mines has increased, and the demand for gold in the 4th qtr of 1999 has decreased, as well. These stocks are best suited for those with long-term investment horizons.

Technological advances, changed review procedures at the Food and Drug Administration, increased merger and acquisition activity, and other factors were some of the trends that accelerated stock prices in the medical supplies industry in the 1990s. However, market maturation, pricing pressures and economic weaknesses overseas have made the end of the decade more challenging for this sector. Most stocks in this industry will only match the market in the year 2000, but some have good price potential for the year ahead.

Share prices for the tire and rubber industry have fallen during the 3rd qtr of 1999 and mediocre earnings prospects and lower stock prices have made these equities less timely. Alliances, acquisitions, and cost containment will be major growth factors for the industry in the future. The near-term outlook for these stocks is not good and investors need to be selective in their choices.

The need for replacement parts for automobiles has decreased with better automobile industry quality, better automobile maintenance, and other factors. The auto parts (replacement) industry has grown through mergers and acquisitions and mergers, but stock prices have declined 25% in 1999. Competition is expected to have a negative effect on margins and profits in the future, and this sector has become a slow-growth industry.

Profits for the brewing industry in North America have remained high due to pricing moves and other positive factors, such as demographics in the US. There have also been solid gains in volume and revenues for the wine industry, also, with upscale purchasing and the industry continues to consolidate, as well. The prospect for the alcoholic beverages industry for 1999 and the year 2000 are strong, as they are for the next three to five years.

Large acquisitions in the grocery store industry, especially by Albertson's and Kroger, have caused supermarket stocks to lose favor with many investors, due to the economics of merging. Other retail sectors, such as discount stores, are entering the grocery business, and online grocery shopping may be a future industry segment, or only a fad. These stocks are not timely in 1999, but several may have potential for the next three to five years.

The price of gold has trended down through most of 1999, but this may be reversed with the decision by European central banks to limit the official reserve sales. Stock prices for gold mining companies have risen as a result, and the price of gold is also expected to rise, not only in the year 2000, but through the years 2002-2004, as well. These stocks should be considered mainly by investors with long-term objectives.

Stocks in the foreign telecommunications industry have become less timely in 1999 due to deregulation, shifting investor focus, and recent earnings reports. Deregulation, technological advances, and increasing international alliances have become important industry characteristics, as has the increasing change from voice to data communications. Investors need to selective in their choices as these stocks are not timely in 1999 and the industry's three-to-five year performance outlook is not altogether positive.

Stocks in the cable TV industry have fallen in 1999, and many are trading at considerably lower premiums than earlier in the year due to higher interest rates and other factors. Possible cable ownership limitation rules, slower merger activity, and the open access issue have also lessened enthusiasm for these stocks, as well. These stocks are not timely for 1999 and the year 2000, and investors need to be selective in their choices.

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.

1999 is not expected to be a strong year for the tire and rubber industry due to competitive prices and restricted volume growth. The industry's three-to-five-year performance will depend on the success of joint ventures and on companies' success at integrating acquired companies. As a whole, tire and rubber industry stocks are a subpar choice in 1999.

The stocks of companies in the replacement auto parts industry offer earnings growth potential in the three-to-five-year time frame. However, sales growth has been affected by slower growth in the number of autos and improved quality of vehicles and parts. Investors should remain cautious when purchasing auto parts industry stocks

Prices and earnings in the medical supplies industry have been under pressure in the late 1990s from government insurance agencies, such as Medicare, and competition within the industry. Reaearch and development, technological innovation, and industry consolidation are some of the methods by which medical supply companies have attempted to cope with the situation. Investors need to consider safety and timeliness factors when evaluating these stocks for selection.

There has been downward pricing pressure on retreaders and tire producers in the US due to the trade deficit of the 1990s and prices have declined by 4% in 1998. Tire and rubber companies are seeking acquisitions in order to contend with the 2% to 3% annual growth rates for the industry, and are also seeking to contain costs in order to enhance earnings. Most of these stocks are expected to underperform the market in 1999 and through the years 2001-200, as well.

Lower demand for replacement parts, new vehicle-repair channels, the high number of replacement parts, and overall low industry expansion were some of the unfavorable trends facing the replacement automobile parts industry in the 1990s. These negative trends have led some companies to experience higher inventories and lower sales, and industry consolidation has been one way to cope with this situation. Investors need to be cautious when selecting these stocks due to the cyclical and transitional nature of the industry.

Merger activity has increased in the grocery store industry in 1998 and the larger chains have begun to crowd out the smaller, independent stores, and this trend is expected to continue through the efforts of Wal-Mart Stores Inc. Industry earnings and profits have been good in 1998, and streamlining, buying power, and increased efficiency should enhance this. Many of these stocks are expected to outperform the market in 1999.

Investments in gold and silver mining companies are not expected to yield quick profits, partly because the price of gold and the threat of inflation are relatively low. However, European central banks are not expected to sell off their gold reserves. Gold and silver are increasingly regarded as commodities, and gold prices will probably not exceed $325 an ounce in 1999.

Rate hikes have become a major issue for the cable television industry in 1998, as cable television rates have risen much faster than inflation in the US in recent years. There is also an increasing combination of telephone communications and cable television services in the late 1990s, as well. Cable television stocks are expected to outperform the market in 1998 and 1999, but investors need to be selective in their choices.

The toiletries and cosmetics industry is operating under the constraints of private label inroads, customer value consciousness, a lackluster retail sector, and other problems in the US market in 1998. However, there several overseas markets, outside the US, Europe, and Japan are offering alluring opportunities for cosmetics manufacturers. Most of these stocks are expected remain stable with the market in 1998 and through the years 2001-2003.

Control of telecommunications goods and services has shifted away from the distributor to the consumer with the introduction of deregulation and a competitive marketplace. Many telecommunications companies have bercome more global with freer markets and consumer demand for paging, telecommuting, the Internet, and E-mail is having an effect on the equipment sector. Investors need to be aware of volatility in what has become a growth industry.

Electric utilities in the Middle West can no longer count on recovery of plant investments or a fair rate of return with deregulation and the onset of competition in the industry. All utilities, even those with low cost structures, will face stranded cost problems and this has become an issue in a number of states. These stocks have little investment appeal in 1998 due to their trading range and uncertainties in the industry.

Electric utility stocks have lost ground during the 2nd qtr of 1998, though valuations have increased due to lower interest rates, and weather in the Midwest has had an economic impact as well. Legislation has been adopted in a number of states restructuring electric utilities, and the industry should be deregulated within the next five years. These stocks are stable, although risky, investments in 1998.

The US government is planning to make some major changes for managed care and Medicare recipients beginning in Nov 1998 and this will have an effect on provider cost controls. Medical supply manufacturers, especially the orthopedic sector, will be affected by this, but new products will aid sales and margins in 1998 and through the years 2001-2003. Investors, however, should select the most timely stocks for commitment.

The majority of the European telecommunications industry's markets were opened to competition as of Jan 1, 1998, and most other markets worldwide will be competitive by the year 2000. The Latin American and Asian areas are still the emerging markets for long-term growth opportunities with their low rate of telecommunications penetration. However, there is uncertainty for investors through 2000-2002 from competition and the Asian economic crisis.

Diabetes has become more prevalent in the US, and the world at large, with the ageing of the US population and other factors. The market for diabetes and glucose test equipment, as well as insulin therapy needs, has become more important to medical supplies companies, such as Johnson and Johnson and Abbot Labs. Cost controls and new products have combined for good 1998 profit prospects for the industry, and investors should seek timely stocks.

The market for the tire and rubber industry has been generally favorable in 1997, with the exception of some weakness in pricing, as some tires cost 2% less than in 1996. Raw material prices have stabilized after declining, and shipments remain steady. Some companies have benefited from cost controls and increased efficiency, and acquisitions have provided growth for others. The industry should have modest earnings increases for the year 1997.

Sales and earnings for the automobile replacement parts industry have been weak in 1997 due to bad weather and the higher quality of the aftermarket and original equipment. Many of the companies in this industry have begun to restructure in order to increase sales and earnings, and growth is expected for the industry for the next several years. Investors should find a number of timely stocks in this industry for 1998 and through 2000-2002.

Prepared (home meal replacement), private label, and perishable foods have increased gross margin expansion prospects for the grocery store industry in 1997 and 1998. However, the retail marketplace is going through fundamental changes and grocery stores are expanding services and products to meet new competition. The grocery store industry is not timely in 1997 and 1998, and investors must be selective before purchasing stock in this sector.

Joint ventures and global alliances have been flourishing in the foreign telecommunications industry as part of its response to market openings. There are also attractive long-term growth opportunities in the Asian and Latin American markets, compared to Europe and the US, with their low rates of fixed-line penetration. There are a number of stocks with three-to-five year growth potential in this industry, although few are timely in 1997.

The cable television broadcasting industry has begun to change its mode of operation in terms of cost saving, customer service and other areas in order to improve company balance sheets. Improved compression technology, carriage fees, and growth in advertising revenue are giving the industry brighter prospects, but 1997 losses were reported by most companies. Investors must be selective in their exposure to the industry, or avoid it altogether.

The toiletries and cosmetics industries are expected to have a good year in 1997, although the US domestic market has matured and cosmetics products are firmly established. Several manufacturers have also begun operating in overseas markets, but there are risks in addition to opportunities. Several of these stocks are timely and the industry is favorably ranked for 1997, but investors need to select the strongest companies for commitments.

The electric utility industry is being deregulated at both the federal and state levels in the mid-1990s, and this will have an impact on dividends, earnings, and revenues. Pollution, financial stability, service access, costs, and pricing are other deregulation issues that utilities will face, as well. This industry has matured in the US, and investors must be selective before making financial commitments.

The food processing industry will face continued competition from private-label products and it will continue to seek cost reductions in the face of slumping markets in Europe and the US. Private-label product growth is expected to continue due to better margins for supermarkets and lower costs for the consumer. Some food processing companies will be able to compete if they employ measures that will support their brands. Cost reductions will include divesting non-core product lines. Most stocks in this industry have a very limited investment appreciation outlook.

Investments in the oilfield services and equipment industry rate very high in timeliness, as worldwide demand for energy soars and drilling technology improves. The limited supply of drilling rigs, especially for offshore use, provides good prospects for companies such as Baker Hughes Inc. Contract drillers should also prosper as offshore exploration picks up in locations including West Africa and the Gulf of Mexico.