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Editorials, Sunday, 04/09/2000

Goldman Picks Top Six "Old Economy" Stocks
By Cindy Christ

Yesterday Goldman Sachs caused a stir on Wall Street after releasing a list of "Super Seven" technology stocks best suited to withstand wild swings like investors saw this week on the Nasdaq.

On Friday, the firm's capital goods analysts issued a list of top six "old economy" stocks standing to benefit from better -than-expected U.S. industrial activity and economic recovery in Europe and Asia.

The six companies are General Electric Co., Ingersoll-Rand Co., Pentair Inc., Rohm & Haas Co., Textron and United Technologies Corp.

Analysts said earnings surprises for these companies are likely, given the economic landscape and expected productivity gains.

"Despite the better performance of old economy stocks in recent weeks, these stocks still provide superior opportunities for capital appreciation over the next year," analysts said in a research note.

Shares in the six companies didn't enjoy the across-the-board gains posted by Goldman's Super Seven on Thursday.

General Electric (GE) finished up $1.75, or 1.1 percent, at $158.63. Ingersoll-Rand (IR) slid $1.13, or 2.5 percent, to $44.13.

Pentair (PNR) jumped $0.81, or 2.2 percent, to $38.56. Rohm & Haas Co. (ROH) was unchanged at $44.75.

Textron (TXT) fell $1.06, or 1.7 percent, to $60.94. United Technologies (UTX) slid $0.56, or 0.91 percent, to $60.94.

 


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