PAGE B4 ASBURY PARK PRESS SUNDAY, OCT. 1,2000 Ctaiart DSt SteSCJS to OH JOHN DORFMAN in 1991. Earnings over the same period have grown to $161 million from $3.5 million. The earnings growth rate for the past five years was 45 percent. As many investors sense a slowdown in the personal-computer industry, Synopsys shares sell today for only 14 times earnings.
I think it is a sensible buy for investors who have a long-term outlook and who aren't overexposed to computer-related stocks. The balance sheet is almost free of debt, which should help Synopsys ride out tough times in its sector. Siliconix Siliconix of Santa Clara, makes transistors and circuits used for motion control and power management in cars, cellular phones, computers and other applications. Vishay In-tertechnology Inc. owns 80 percent of the shares.
Siliconix, too, has a virtually debt-free balance sheet. Earnings growth averaged 44 percent for the past five years, but the stock sells for only 14 times recent earnings. The stock is barely followed by analysts, even though it has a market value of $1.5 billion. Ethan Allen guess of 11 percent growth going forward would still be enough to give investors some profits, I figure. The stock sells for only 10 times recent earnings and 0.7 times revenue.
Kmart Kmart, the second-largest discount retailer, based in Troy, is a stock everyone loves to hate. And no wonder, since the shares fetched $24.50 at the end of 1992 and closed yesterday at $6.06. So much money has been lost in Kmart shares that investors and analysts are skittish. The Bloomberg database of analysts' opinions shows only three "buy" recommendations, 12 "holds" (often a euphemism for sell), and two "sell" recommendations, which are very rare. Kmart makes the "cheap growth" list partly through a statistical quirk.
Earnings were particularly depressed five years ago, allowing Kmart to show a five-year earnings growth rate of almost 44 percent even though recent earnings have been mediocre. (And second-quarter earnings were way below year-ago levels, leading to the stock's latest plunge.) I'd be the last to claim that Kmart has been a well run com pany. But the stock is now down to a market value of $2.91 billion, barely a large-capitalization stock any more. It is cheap enough to make it a takeover target, perhaps for a foreign retailer. Debt is 47 percent of eq- uity, not so high as to discourage a potential takeover.
Even absent a takeover, a case for Kmart can be made on fundamentals. The stock sells for a mere 6.5 times recent earnings, half its book value (corporate net worth per share) and 110 its revenue. Kmart has been profitable for 17 quarters in a row. It may be a dog, but it's not a dead dog. New chief executive Chuck Conaway has shaken things up, ordering executive changes, store closings, firings and improved inventory controls.
He has also made symbolic steps, removing portraits of past chairmen from the lobby at headquarters, allowing casual dress and requiring executives to work (briefly) in stores. John Dorfman is president of Dorfman Investments in Newton, Mass. His firm may be invested in some of the companies mentioned in this column, which is syndicated by Bloomberg News Service. He can be reached at jdorfmanbloomberg.net. Ethan Allen of Danbury, makes furniture and sells it through a network of some 300 retail stores.
Like most furniture stocks, it has suffered from rising interest rates, which investors figured would mean reduced furniture sales. The shares were down 18 percent this year through Friday. For the past five years, Ethan Allen has turned in 31 percent average annual earnings growth. Debt is only about 7 percent of stockholders' equity, and return on equity was 24 percent last year. I think the stock is a good buy at its current price of 12 times earnings.
Parker Hannifin Parker Hannifin of Cleveland makes a wide variety of industrial parts and systems. It is best known for fluid power systems, but it has some 1,400 product lines, from the prosaic (pumps, filters, hoses, seals) to the exotic (temperature controls for the Hubble Space Telescope). For the past five years, Parker Hannifin's earnings have grown at a 43 percent annual clip. Investors obviously believe the company can't keep that up. And they're right, but analysts' ONE WAY TO DEFINE what investing is all about is to say it's the art of buying the most possible growth for the least possible money.
From time to time, I ask my Bloomberg stock-screening software to look for stocks with five-year historical earnings growth of 15 percent or better, and a price less than 15 times the past four quarters' earnings. When you see that combination in today's market, it means that most investors think the growth is about to hit the wall. But investors and analysts aren't very good at foreseeing the future nobody is. So I'm happy to own stocks that are currently cheap and that have shown the ability to increase earnings in the past. That's the concept behind the Bunny Portfolio, which I introduced in December 1999.
The 10 stocks in the Bunny Portfolio were selected from a screen similar to the one just described, but with a requirement for 25 percent historical earnings growth and a price-earnings ratio under 12. The Bunny Portfolio is named after the bunny in the Energizer battery commercial. The idea is that despite analysts' misgivings, these stocks just might keep going and going. So far this year (through yesterday), the Bunny Portfolio is up 29 percent, compared with a loss of 2.9 percent for the Standard Poor's 500 Index. When I ran my regular "cheap growth" screen last weekend, some stocks that looked strong were Synopsys Siliconix Ethan Allen Interiors Parker Hannifin Corp.
and believe it or not Kmart Corp. I think all five of these stocks are worth considering. Several of them are also candidates for next year's Bunny Portfolio. Synopsys Synopsys of Mountain View, makes software used to design computer chips. Its revenue has grown to $806 million last year from about $40 million BUSINESS CALENDER 1 call (732) 505-6033 or visit the Web site at www.occis.com score-150.
HI at the Woodlake Country Club, Lakewood, at 11:30 a.m. Peter Grandich, market strategist and director of the private client group for Congilose Associates, is the speaker. Cost is $15 for members, $20 for nonmem-bers. For information call (732) 363-0012. Jersey Shore High-Tech Showcase will be held at the Sheraton Eatontown Hotel and Conference Center from 8 a.m.
to 4 p.m. This event will give the shore's leading high-tech companies the opportunity to demonstrate advances in technology. The showcase is sponsored by the Jersey Shore Partnership. Cost is $90. For reservations call (732) 747-0456.
your own business hosted by SCORE, Ocean County chapter, at the Ocean County Library, Little Egg Harbor, from 7 to 8:30 p.m. For information call (609) 294-1197. Seventh Annual New Jersey Family Business of the Year Awards Luncheon at the DoubleTree Hotel, Somerset. Sylvia Woods, of Sylvia's Restaurant, Harlem, and her grandson, Lindsey, will give the keynote speech. The Rothman Institute of Entrepreneurial Studies at Fairleigh Dickinson University, PNC Bank and New Jersey Monthly magazine are sponsors of the program.
For information contact Hilda Bucking (973) 443-8880. Meeting of the New Jersey Entrepreneurial Network at the Doral Forrestal, Princeton, from noon to 3 p.m. Representatives from various types of business incubators will describe their business models and services provided to start-up businesses. Cost is $45. For information call (609) 279-0010.
Workshop on starting your own business hosted by SCORE, Ocean County chapter, at the Ocean County Library, Point Pleasant, from 7 to 8:30 p.m. For information call (732) 295-1555. Lakewood Chamber of Commerce Industrial Lunch "Local Internet Marketing: The Internet and E-com-merce Demystified'' presented by Bernie Viggiani, chief of operations for Ocean County Community Information System at the Ocean County Library, Toms River, from 6 to 8 p.m. The free seminar, co-sponsored by SCORE, Ocean County chapter, will focus on how to build and market a Web site, 10 big Web site sins and how to avoid them, and the key elements for Web site success. To register call (732) 349-6200 or (609) 978-0514.
Workshop on starting Workshop on starting your own business hosted by SCORE, Ocean County chapter, at Ocean County Library, Lake-wood, from 7 to 8:30 p.m. For information call (732) 363-1435. Meeting of SCORE, Ocean County Chapter, at the Dover Township municipal building, 33 Washington at 10 a.m. The association welcomes women and men to join and share their varied commercial backgrounds with local business people. For information A free estate planning conference sponsored by the Jewish Federation of Greater Monmouth County from 5:30 to 8:30 p.m.
at the Sheraton Eatontown Hotel and Conference Center. CPA Martin M. Shenkman will address what people need to know about charitable planned giving. For information, call Lois D. Sutton at (732) 531-6200.
INTEREST RATES Introductory Rate Post Introductory Rate nm nn 5 Years 10 Years 15 Years 7.5(M8.00ll8.25l APR APR Prime Minus 0.50 Fixed For 3 Years APR APR APR NO AUTOMATIC PAYMENT DEDUCTION REQUIRED fiOft wSpencer Savings Bank Lending Strength to Home Financing For an application package call Warren Valentovic at 1-800-363-81 15 Ext 330 Voice Mail Available 24 Hours fssfr Loan Center: 222 Outwater Lane, Garfield, NJ 07026 12 Offices ihroughoul North Jersey www. spence rsavi ngs. co Member FDIC Boch pmgrams are lot FirslTirwSpcnirrippkanLswurctlbyanttwTicr-ottupcd 1-4 NJ family home Application fees for loans over H00.000 1 family $17 00, 2-4 family 25 00 Titfit is a tlosine fee Homr Fruity Cmlii Luk The Introductory rale remains corwam lor years and is nut based on any milex Alier ihe ininxUn rory period ilie rate is variable The highest Prime Rate published in the Wall Street journal on the last business day of each month minus 0 "rtPfc Asol September 2tXX)ihe Prime rate was 9 jt, thusavinga post introdudory rate of (10 Maximum rate is 1 1 Propr rty insurance is required kales shown as of publH ation date and arc sublet to dianc wiihoui notice APR Annual Petventagr Kale ADVANTA Account Yields Loan Rates Money Mkt Checking CDs Auto Home Equity 6-mos. 1-year New Used Credit 5-year 15-year Institution Mtn. Min.
Min. Min. 3-year 4-year 3-year line loan loan BANKS Allaire Community 3.51 10000 1.51 500 6.00 1000 6.40 1000 8.50 8.50 9.50 8.50 8.25 8,75 Amboy National 3.04 2500 2.12 2500 5.20 10000 5.50 10000 8.75 8.75 9.50 7.29 8.25 8.75 Commerce 1.77 1000 1.01 NA 4.50 1000 6.00 1000 9.50 9.75 9.50 NA 8.75 9,25 Community Bank 2.64 1000 2.12 1000 5.75 1000 6.25 1000 8.50 9.00 9.50 9.00 8.25 9.50 SI Bank Trust 3.30 1000 2.02 2500 5.86 500 6.00 500 9.25 9.50 9.875 NA NA NA First Union 1.70 1000 0.90 1000 4.10 1000 4.15 1000 NA NA NA NA NA NA First Washington Slate 3.50 10000 NA NA 5.75 1000 6.75 1000 8.00 8.25 8,75 6.75 7,50 8.25 Fleet Bank 6.00 25000 0.50 3000 5.23 1000 5.28 1000 9.74 9.74 10.49 9.50 9.74 9.74 Monmouth Cmty. 2.93 1000 1.76 .100 6.00 500 6.25 1000 7.99 7.99 8.99 9.50 7.49 7.75 PNC 2.10 1000 0.70 100 4.80 1000 4.81 1000 NA NA NA NA NA NA Shore Community 3.01 10000 1.99 500 6.25 500 6.40 500 8.25 8.50 9.50 9.00 8.25 9.00 Shrewsbury State 2.05 1000 1.50 1000 4.10 1000 4.45 1000 8.25 8.50 9.25 6.99 8.50 9.24 Summit Bank 17 50 0.25 2000 4.35 1000 4.50 500 9.25 9.25 9.75 8.00 8.99 9.24 Sun National 5.25 10000 1.00 1000 4.50 500 6.00 500 9.75 10.00 11.00 10.00 8.74 9.74 Two River Cmty. 4.50 25000 2.00 1000 5.00 1000 5.50 500 8.375 8.625 9,250 6.90 8.625 9.125 SAVINGS BANKSSXLs Columbia Savings 2.36 10 1.51 500 5.00 500 5.45 500 7.990 8.125 8.990 9.00 7.625 8.240 Dime Savings 3.50 15000 1.01 1000 4.20 500 4.45 500 9.75 9.75 10.25 9.50 9.00 9.50 First Savings 2.75 2500 1,75 2500 5.13 500 5.60 500 8.250 8.500 9.750 6.99 7,74 8.625 Freehold 300 1000 2.27 300 5.00 500 5.50 500 NA NA NA NA 8.25 8.75 Hudson City Savings 2.50 2500 1.50 2500 5.20 500 5.50 500 8.75 9.25 10.00 9.50 8.00 8.375 Investors Savings 350 2500 2.50 500 6.50 500 6.75 500 NO NO NO 9.00 8.00 8.75 Manasquan Savings 3.60 10000 1.75 500 6.25 500 6.50 500 8.50 8.75 9.50 8.50 8.25 8.75 OceanFirst 2.15 10000 1.51 50 5.00 500 5.20 500 8.75 1 025 9.50 8.375 8.875 Provident Savings 2.25 1000 1.25 1000 6.00 2500 6.50 500 8.375 8.875 9.375 11.00 8.75 9.25 Pulaski Savings 2.76 1000 3.50 300 4.61 500 4.76 500 NA NA NA 8.875 7.840 8.625 Sovereign 5.10 10000 2.00 2000 4.25 500 4.65 500 8 99 9.24 9.24 NA 8.99 9.49 World Savings 1.27 300 0.51 500 4.82 10000 510000 NO NO NO NO NA NO CREDIT UNIONS Affinity FCU 3.25 1000 1.26 0.01 5.25 500 7.00 500 7.99 8.25 8.50 6.99 8.49 9.25 First Atlantic FCU 6.00 50000 .75 5.00 6.20 500 6.50 500 7.75 J7.75 8.00 6.99 7.75 8.50 Mon-Oc FCU 4.0 1000 1.00 1000 5.90 500 6.00 500 8.50 8.50 8.50 8.50 8.25 9.00 United Teletech 5.40 25000 1.00 0 5.64 25000 6.00 25000 7.75 8.00 7.75 8.50 8.25 9.25 Weigh the Value of these Returns Annual Percentage Yields Minimum investment $5,000 Ask about our higher rales for investments of $50,000 or more Terms from 3 months to 5 years Interest compounded daily can be paid monthly, quarterly, semiannually, annually or at maturity No commissions or fees For a Prospectus and Free Information Kit.
call us toll Iree The Annual Percentage Yields above are available through October 7, 2(1(10. This announcement is neither an oiler to sell nor a solicitation of an olfer to buy Notes. The oiler is made by Prospectus only. The Notes are being sold by Advanta Corp. and the proceeds will be used (or general corporate purposes.
The Note represent obligations of Advanta Corp. and are not insured or guaranteed by the FDIC or any other governmental or private entity Available only to residents ol: CA, CO, CT. I)K, PL. OA, KS, MA, Ml), MN, NJ. NY, OR, I'A.
The Annual Percentage Yield assumes interest is paid only at maturity Advanta a Publicly Owned Company, is traded on NASDAQ (Symbols ADVNA ADVNH). 5 l'W9 Advanta Corp. Source Code: CPDHKXAAXX RATES ARE AS OF FRIDAY. Since banks change their rates at different times, consumers should call ahead to make sure rates indicated are still available. NA indicates rate was not available at press time.
NO indicates the account or loan is not offered. Flex indicates flexible rates. CDs rates: Rates quoted are the effective annual yields. They show the rate of return earned for a period of one year, after compounding, and should serve as a useful comparison among banking institutions. Actual returns may vary based on the account and length of time funds are left in that account.
The Min, column shows the minimum deposit required to open this account. Checking Rates: The rate quoted is for an interest-bearing checking account. The Min. column represents the minimum balance required in the account to avoid a monthly service charge. Money Market Rates: The rate quoted is for a money-market savings account.
The Min. column shows the minimum deposit required to open this account. Loan rates: Rates are for non-depositors. Some banks offer better rates to depositors. Not all types of loans are included.
Used car loan rates are for cars two years or older. Loan rates vary according to age of used cars. Home equity rates are based on a 20-year payback. Interest rates on the 5- and 15-year loans are fixed. $9 Delaware Corporate Center I One Righter Parkway Wilmington, DE 19803 www.advanta.com notes Founded and headquartered in the Philadelphia area, Advanta Corp.
has been selling Investment Notes for nearly SO years..
