WITH the Dow Jones average standing this morning at 9,693.76 -- up 512.30 points, or 5.5 percent, this year -- and many investors chasing the high-fliers, where do we put our money now?

"Temporarily depressed stocks are true buying opportunities," says Bottom Line 1999 Yearbook. "Look for companies selling at least 25 percent below their 52-week highs. Favor solid companies that have fallen out of favor among analysts."

Following that advice, I combed the latest stock tables and found well-known companies selling at least 25 percent below their 52-week highs. Examples:

Compaq Computer Corp., Coca-Cola Co., Baltimore Gas & Electric Co. (now yields 6.2 percent), Caterpillar Inc., International Paper Co., Rouse Co., Du Pont, American Power Conversion Corp., Philip Morris Cos. Inc., Polo Ralph Lauren, E*Trade Group Inc., Lycos Inc. and Goodyear Tire & Rubber Co.

These are not Ticker "buy" recommendations -- that decision is between you and your broker -- but they are out-of-favor depressed issues worth considering.

NOW WHERE? Here are readers' opinions:

"I predict Dow 11,557 at year-end. Market will continue to rise due to large amount of 401(k) money pouring into stocks." (Randolph Sonderman, Baltimore.)

"We forecast 10,932. Continued low inflation, wages in check, Greenspan to lower rates in September, Y2K problem overblown." (Guy and Melanie Cook, Baltimore.)

"Y2K will cause temporary redemptions, disruptions in stock market. I say 8,395." (Greg Seltzer, Fallston.)

"Dow 6,045. Anticipation of year 2000 computer failures causes fear of financial chaos." (James Hackett Jr., White Hall.)

"Earnings will grow 10 percent, interest rates to rise moderately, dropping P/E ratios to 20." (Donald Stevens, Towson.)

"With year 2000 coming, something unexpected will send the market into a free fall to 5,485." (Ronald Marple, Airville, Pa.)

Pub Date: 3/10/99