Sport Supply GroupR.H.M. Survey of Low-Price Stocks...


Sport Supply Group

R.H.M. Survey of Low-Price Stocks and the Cheap Investor like Sport Supply Group (AMEX, GYM, $9.625).

"Sport Supply almost 'owns' its market," R.H.M. says. "The company is the largest direct-mail marketer of sports equipment to some 50,000 institutions, such as schools and athletic clubs. The firm markets 5,300 products such as weight-room and track-and-field equipment, gym mats and nets. Revenues have risen sharply over the last five years, reaching $47 million in 1991."

ays the Cheap Investor: "Trading at an exceptionally low price, we believe this stock offers great long-term profit potential."

CML Group

"CML (NYSE, CML, $47.125) manufactures NordicTrack, a cross-country skiing simulator that we believe has only begun to penetrate the home-exercise market," says Edward Cimilluca, Shearson Lehman Brothers.

"With the continued success of its skiing machine, its move intthe anaerobic market, and the beginning of an expansion into retail stores, there continues to be tremendous growth potential for this company.

"Downside risk in the stock, in a poor market, is to the $38 level. On the upside, we believe the stock could trade as high as $60 a share. We award the stock our top buy rating."

Hyde Athletic

"Hyde Athletic (OTC, HYSE, $7) holds an unexploited asset -- P.F. Flyers," says Eric Kuby, Rodman Advisory Services.

"I have felt there is strong potential for the company to bring these shoes back into vogue. The company also owns Brookfield, which is the No. 1 maker of children's roller skates, which is a growing area. The firm's in-line blades are hot. In addition, Hyde makes a high-performance shoe called Saucony, which is very popular with runners. The firm seems to have a lot of strong products, yet the stock price doesn't reflect any of the positives. [Book value is about $10 a share.] I think now is a good time to look at these shares."

N.D.L. Products

"N.D.L. (OTC, NDLP, $2.25) is a leading designer and maker of sports therapy and preventive therapy products, such as supports, pads, and wraps for protecting joints, muscles, and tissue," says Richard Lilly, J. W. Charles Securities.

"The firm's expertise in working with neoprene [a synthetirubber derivative] distinguishes its products from those of its competitors. Neoprene excels at retaining the body's heat and increasing circulation. The firm's products are sold primarily to sporting goods stores, drug stores, and department stores. N.D.L. earned 18 cents per share in 1991, and we look for profits of 28 cents a share this year. Next year, we look for 35 cents."

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