Spec's MusicOur favorite stock pick for 1992...


Spec's Music

Our favorite stock pick for 1992 is Spec's Music (SPEK, OTC, around $5), a Florida-based 59-store retailer of pre-recorded music and video products," says The Clean Yield of Greensboro Bend, Vt.

"Spec's was founded in 1948 by Martin Spector. The firm has managed to hold its own during the recession and the slump in the music business. Our estimate is that earnings could reach $0.50 a share during the next 12 months.

"At current prices, we feel the stock is selling for a song."

Sound Advice

"My 1992 stock of the year is Sound Advice (SUND, OTC, around $7), which has built an outstanding growth record by concentrating on upscale home and auto electronics products," says The Gene Aldridge Market Letter of Richardson, Texas.

"Over the past 5 years, the firm has tripled its book value and quintupled its sales. Over the past year, four major investment institutions have taken 5 percent plus positions in this stock.

"We recommend purchase for significant capital gains."


"Cordis (CORD, OTC, around $32), is a medical technology firm that has risen from the ashes," says Leo Hood of Ripples in the Wave, Gainesville, Fla.

"The firm has abandoned the cardiac pacemaker market and shifted its focus to diagnostic catheters. The firm now has a 40 percent share of that market.

"Profit margins on therapeutic catheters are near 80 percent.

"Analysts estimate that Cordis could earn $1.75 a share this year and close to $2.40 a share next year."

Elan Corp.

"Elan (ELN, OTC, around $46), a developer of sustained-release pharmaceuticals, posted its third successive year of triple-digit earnings growth in fiscal 1991," says Dean Witter of MarketView.

"We believe that positive news is forthcoming on Elan's Nicolan transdermal nicotine patch for smoking cessation. In our view, Elan believes its patch is superior to the nicotine patch currently on the U.S. market. Meanwhile, our 1993 target price is $70. We recommend aggressive purchase of the stock."

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