Individual Investor Special Situations, New York, likes Catherines Stores (OTC, CATH, $12.875).
"Catherines operates 229 stores in 35 states, offering apparel and accessories for large-sized women, size 16 or bigger. The $10 billion market for large-sized women's apparel is growing much more quickly than the industry at large. . . . CATH should report dramatic profit gains in fiscal 1992, with earnings rising from a $0.02 per share loss to a $0.70 per share gain. Next year's earnings should range between $0.85 and $0.90 per share. We are confident that the company is in the beginning stage of a long period of sustained, profitable growth."
Executive Wealth Advisory, New York, taps State-O-Maine (OTC, SOME, $15.25), a maker and distributor of men's high-quality sportswear and outer wear.
"Its goods are sold in better stores, such as Bloomingdale's, Dillard's, Nordstrom's and Saks Fifth Avenue. Nautica is the flagship line. State-O-Maine weathered the recession in excellent condition. Profits over the last four reported quarters jumped 76 percent on a 12 percent increase in sales. Earnings growth accelerated dramatically in the last two quarters, in a dramatic breakout after years of wide swings. Earnings for fiscal 1992 are estimated to have climbed to 90 cents a share."
Louie Nejedlo, Equity Analyst, Green Bay, Wis. likes Charter Golf (OTC, CGOL, $7.625), a designer and marketer high-quality golf apparel under the Ashworth label.
"Ashworth apparel is sold exclusively to golf pro shops, country clubs and resorts. These players are compensated exclusively through stock and stock options. Fred Couples owns 5 percent of Charter Golf stock. Equity Analyst is projecting sales and net income to double in 1992. Although these shares trade at a hefty price/earnings multiple, the popularity, the past growth, and future prospects of the Ashworth apparel lines make Charter Golf shares a strong speculative buy at these levels."
John Rogers, The Patient Investor, Chicago, likes Oshkosh B'Gosh Inc. (OTC, GOSHA, $22.75).
"While best known for its branded children's wear, the company continues to offer new collections of casual sportswear for women and update work wear for men. Oshkosh's recent weak results have been a consequence of the weak economy, and consumers' wariness to shop at traditional department stores. The Oshkosh brand continues to have undiminished appeal, and is an item that has the ability to draw customers to a store. . . . We continue to recommend purchase for long-term investors seeking capital appreciation."