Fallen Angels To Resurrect

Notwithstanding the market's climb to record highs, investment manager Tony Spare finds that bargains still abound. Several of his picks are "fallen angels"--former growth stocks that disappointed the Street and that have hardly budged in the bull market. He has been snapping up shares of Bristol-Myers Squibb (BMY), Tambrands (TMB), and Dun & Bradstreet (RND).

Spare considers Bristol-Myers, currently trading at 66, to be way undervalued. Seen by analysts mainly as a drug company, Bristol-Myers is also a "diversified international consumer-products company that's well-positioned for strong growth worldwide," insists Spare. Its balance sheet remains strong, he adds, and recent earnings disappointments "have masked its excellent cash flow and leading market-share position of its many products." He sees the stock hitting 75 in a year.

The Tambrands line of feminine-protection products, says Spare, "ranks very high in market share worldwide." He feels encouraged by a strong balance sheet and by a record of 47 years of steadily increasing dividends. He thinks the stock, now trading at 43, is also cheap--and will rise to 55 during this year.

Dun & Bradstreet has made its name, notes Spare, on the strength of publishing and financial-database operations worldwide. The stock is buttressed, he says, by a strong cash flow and high dividend yield--of 5%. His target for the stock, now priced at 52, for the year is 60.

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