Inside Wall Street
GENERAL PHYSICS MAY BE SUPERHOT
As the U. S. begins to reduce its nuclear arsenal, some investors see a bonanza for a company called General Physics, a major provider of services to the nuclear industry. General Physics went public in September when parent National Patent Development sold some 60% of its 93% holding in the company. General Physics offers training programs for nuclear and fossil-fuel power plant workers and has provided other services, such as helping the government and commercial clients to improve environmental, health, and safety conditions at 90 of the nation's 112 nuclear plants.
Mark Friedman, an analyst at Goldman Sachs, says the decision to reduce the supply of nuclear weapons "could lead to a new business of training personnel to disassemble nuclear weapons." U. S. government personnel will do the actual job, but General Physics could be a big player in training workers, he notes.
Friedman says the company is "ideally positioned" to benefit from the upgrading of Energy Dept. standards, including the process of cleaning up hazardous waste at nuclear facilities. He figures that in the next 30 years, the Energy Dept., which oversees the U. S. nuclear weapons complex, will spend $200 billion to upgrade plants.
Money manager Barry Feirstein, who runs some $980 million at Equitable Capital Management, is also high on General Physics. He says the company has trained personnel at one of the largest Energy Dept. nuclear plants--the Savannah River site. General Physics also won contracts for 9 of the government's 17 nuclear plants. Feirstein sees General Physics making $1 a share in 1991 and $1.20 in 1992, up from 1990's 78~. Now at 12, the stock should hit 20 in a year, he says.BY GENE G. MARCIAL