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Saturday, June 24, 2006

Notablecalls - paperstand - Barron's

According to the Barron’s, at 9 and change, Playboy (PLA) trades near its 1971 offering price. Some fans think it could be worth more than $20 a share.

After years of stellar returns, Fidelity National (FNF) stumbled. But one analyst sees the potential for 20%-plus gains for both its new insurance and new tech shares (Fidelity National Information Services (FIS)) in the next 12 months.

According to the Barron’s, supply and demand conditions in the market have deteriorated sharply, especially in the past month. The Dow Jones Industrials may fall another 15% before it's time to buy.

Sara Lee’s (SLE) stock has fallen more than 10% this year, while rivals have posted modest gains. And, says Barron’s, with a possible dividend cut ahead, the shares could well drop another 15%-20%.

According to the Barrons’ “Technology Trader” column Bernstein analyst Richard Evans thinks Pfizer (PFE) stock could instantly attract value investors once its managers stop spending so much in search of growth. Pfizer shares have been so beaten down, that 4 they trade at barely 11x this year's earnings. Yet the drug giant has more than $15bn in cash. If Pfizer greatly increased its share buybacks, or boosted its already plush dividend, the stock could rise to the high twenties.

Notablecalls: As PLA is only playable call from this week's magazine, it's poised for a nice gain.

Dear Notablecalls reader, if You have a minute, I would recommend reading Barrons’ cover story along with morning coffee. Click here.

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