Wendy's"Wendy's (WEN, NYSE, around $9), the third-largest...



"Wendy's (WEN, NYSE, around $9), the third-largest hamburger chain in the country, is a speculative recommendation," says Andrew Addison of The Addision Report, Franklin, Mass.

"The firm is strengthening its competitive position and improving its operating base. A new 'value menu' that was introduced last fall has met with strong customer acceptance. Management is apparently extremely excited about the company's growth prospects. The stock is a buy on weakness to below 8 for an upside target of 13."

Entertainment Pub.

"Entertainment Publishing (ENT, Amex, around $27) produces the well-known 'Two-for-One Coupon Books'," says J. David Edwards of United Service Advisors.

"These coupons allow diners who buy one entree at selected restaurants to receive a second entree for free. The company, which has expanded nationally, moving into major metropolitan areas ahead of its competition, is likely to grow around 20 percent a year. The stock is relatively undiscovered by Wall Street. We like this stock for long-term investors."

Ryder System

"Over the short term, we believe Ryder (R, NYSE, around $18) may lag the market and the transportation group," says Graeme Anne Lidgerwood of First Boston.

This expected under-performance is due to the continued cloudy outlook for earnings. Although first-quarter profits were slightly better than expected on an operating basis, we believe profits in the second quarter will once again be down. Downside risk from current levels appears limited. We believe the stock remains attractive on a long-term basis."

Atlantic Richfield

"Atlantic Richfield (ARC, NYSE, around $120) had first-quarter earnings that proved to be mildly disappointing, and we have moderately reduced our estimate for the current year to $10 a share from $10.50," says United & Babson Investment Report from Wellesley, Mass.

"The culprit was a gasoline price war in California, which we believe is now on the wane. The temporary pause in the company's earnings growth will likely induce Arco to increase the buy-back of its shares, and a split may also be considered. Buy."

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