Monday, June 12, 2006

Notablecalls paperstand

Barron’s says that minor miscues in Legg Mason (LM) shares have created a buying opportunity. Legg can still become a major power in asset mgmt; one analyst sees its stock price more than 50% higher in a year.

WebEx Communications (WEBX) shares' 40% rise this year has propelled them into the low 30s. But their run looks far from over. One bull thinks they could move into the 60s in 3 years.

Bigger has been better in the stock market lately, and many investors are betting that the long-awaited shift toward large stocks and away from small and midsize issues finally may be under way. Prices of large-cap stocks have stalled in the past half-decade despite smart earnings gains. The shares could rise 20% or more if their P/Es return to their long-term avgs.

Pioneer Drilling (PDC) trades as if the boom were already a bust. Scott Black, of Delphi Mgmt, thinks Pioneer is one of the cheapest stocks around. He's bullish on US natural gas: Not only is it environmentally friendly, he observes, but has the great virtue of not being in Iran or Nigeria. Replacement value of Pioneer's rigs alone, he figures, is over $15 a share, and he pegs per-share net for F’07, ending March, at $1.85-1.95. His 12mo tgt: $22.

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