With the market seesawing back and forth, we turned to some of the nation's long-term, top-performing mutual-fund managers for stock ideas.
Each was asked to name his favorite stock. Here are their picks. (Quotes are as of Nov. 23.)
ERICSSON (ERICY, Nasdaq), the Swedish cellular-telephone maker, has taken a pasting, dropping from a high of $34 last July to $26 in late November. But Mark Yockey, manager of Artisan International, is confident Ericsson will rebound as it unveils new products.
FAMILY GOLF CENTERS (FGCI, Nasdaq, $23) is the leading owner of golf driving ranges in North America. Tom Maguire, manager of Safeco Growth, says the company is modernizing a traditionally mom-and-pop business.
GENERAL MOTORS (GM, NYSE, $73) is the top choice of Michael Price, former manager of Mutual Series funds. He calls GM "a conglomerate" selling at a discount to the value of its component parts. "You're paying almost nothing for the basic domestic auto business."
HOMEBASE (HBI, NYSE, $6) is a chain of 83 superstores for home remodeling that competes with Home Depot, mainly on the West Coast. Robert Rodriguez, manager of FPA Capital, thinks it will be strong enough to stand up to Home Depot. And its stock is much cheaper.
KNIGHTSBRIDGE TANKERS (VLCCF, Nasdaq, $22) was set up two years ago to buy five oil supertankers and lease them to Shell International. Shell guarantees Knightsbridge at least enough income to pay a $1.78 annual dividend to shareholders. And Robert Perkins, manager of Berger Small Company Value, believes the dividend will be substantially higher.
LIBERTY MEDIA GROUP (LBTYA, Nasdaq, $40) is a powerful programming arm of the huge cable-television company Tele-Communications Inc. "Wall Street has a habit of forgetting about the value in Liberty," says Richard Lawson of Weitz Hickory fund. He thinks the stock is cheap.
MCI WORLDCOM (WCOM, Nasdaq, $59) is "one of the fastest-growing big companies around," says Spiros Segalas of Harbor Capital Appreciation fund. A voracious acquirer of other companies, WorldCom recently swallowed MCI Communications, a much larger telecom firm.
CHARLES SCHWAB (SCH, NYSE, $58) will continue to be a market leader, by giving good service and charging more fees instead of commissions, says Ron Baron, manager of Baron Asset.
STORAGE TECHNOLOGY (STK, NYSE, $37) makes devices that allow businesses to store and retrieve vast amounts of data. William Miller III of Legg Mason Value Trust says the firm is making competitive strides.