Central Fund of Can.
"Central Fund of Canada (CEF, AMEX, around $4)is an easy way to invest in gold and silver bullion," says James Fraser, The Contrary Investor, Burlington, Vt.
The bullion is stored and is fully insured. Via this fund, you can buy gold and silver just like purchasing a stock. About one-third of the firm's holdings are silver bullion; the remainder is gold. The fund currently sells at a discount from its net asset value . . . this is a reasonable vehicle for those seeking to establish an inflation hedge via gold and silver."
The Low Priced Stock Survey, Hammond, Ind. recommends Amserv (AMSR, OTC, around $4).
Amserv offers temporary nursing services to hospitals and nursing homes. Despite 14 consecutive record quarterly operating gains and a strong balance sheet with no debt, the shares have declined steadily since reaching a high in 1989. The price-to-earnings ratio of 7 is evidence of the stock's apparent undervaluation . . . At current prices, we believe the stock is an attractive long-term investment. Buy."
Bob Acker, The Acker Letter, Brooklyn, recommends DSP Technology (DPST, OTC, around $2).
"DSP designs instruments that capture data from events lasting anywhere from millionths of a second to several days. Its products are used in such areas as crash tests, recording space liftoffs, testing automotive fumes or researching the greenhouse effect. The company has no long-term debt. Its stock is trading at a price that we consider to be a gift. The stock could more than double and still trade for less than 10 times earnings."
"Wackenhut (LEN, NYSE, around $27) is one of the leading security guard businesses in the country, with annual revenues over $500 million in this segment alone," notes Don Hodges, First Dallas Securities.
The fear of terrorist activity is likely to boost this industry. Meanwhile, the company's division that privately operates prisons is performing very well. The firm just announced two new prison contracts . . . the prison unit is the fastest-growing segment of the company. The stock appears to be an excellent buy at current levels."