Safecard

"Shares of Safecard (SSI, NYSE, around $7), the provider of credit-card loss notification services, fell in price recently in response to allegations that ex-chairman and current consultant Peter Halmos is the target of a criminal probe," says John Bickingham, The Prudent Speculator, of Santa Monica, Calif.

"There is speculation that this investigation could lead to the cancellation of Safecard's contract with Citicorp. . . Nevertheless, we continue to recommend purchase of these shares."

McDonald's

"McDonald's (MCD, NYSE, around $35) has fallen from favor in the last year due to rising labor costs, slowing sales, and price discounting in the industry," says Dow Theory Forecasts of Hammond, Ind.

"Nevertheless, the stock remains the top choice in the restaurant field for investors with a long-term horizon. The firm has taken steps to improve its image among consumers. Long-term earnings prospects are strong and the stock has ample room on the upside over the next two to three years."

Wal-Mart

"Wal-Mart (WMT, NYSE, around $35) unarguably remains the best-managed retailer in the United States," says Cathleen Mackey of Gruntal & Co.

"Sales should continue advancing at a 25 percent annual rate. With the best controls in the industry, earnings increases are expected to match sales gains.

"Strong cash flow should allow the company to maintain its aggressive expansion as it drives toward its goal of becoming the nation's largest and most profitable retailer."

American Family

"American Family (AFL, NYSE, around $23) is a market leader in supplemental health insurance," says Charles Allmon in Growth Stock Outlook of Chevy Chase.

"The firm specializes in cancer-related insurance. The company derives more than 70 percent of its net income from Japan where it works with more than 41,000 payroll groups.

"Profits this year could be in the $1.65 to $1.75 range. With investor interest expanding rapidly into foreign markets, American Family deserves careful study."