Aug. 11–The story slugged WS-WALL-STREET-COL, which was sent by Knight Ridder/Tribune Business News for Aug. 11, contained an error in the Logitech section.

The end of the fifth sentence should have read “profits fell to $0.12 per share on lower pricing” instead of “profits fell to $0.12 on lower pricing.”

Please delete or kill the first version and send the following corrected one.

Wall Street Column

By Steven Lord

Wall Street Column

Aug. 11–GROWTH STOCKS: “JetBlue Airways (JBLU) differentiates itself by flying new aircraft, offering low fares and good service. This strategy has been well received, as indicated by the company’s 87.4 percent load factor in the second quarter of 2003 the best among US airlines. We believe JetBlue can generate continued revenue and earnings growth, especially now that signs point to improved travel demand. Part of JetBlue’s strategy is to find underserved niche markets where current offerings are limited and fares are high, enabling it to move in with lower fares to stimulate demand. At the same time, JetBlue has one of the industry’s healthiest balance sheets. We expect sales in 2003 to grow about 53 percent, EPS about 47 percent to $1.25, from $0.85 in 2002, followed by 40 percent revenue growth and 36 percent EPS growth to $1.70 in 2004. Our target is $60.”

— Joe Lisanti, S&P’s The Outlook (spoutlook.com, 52 issues/$298)

TECH STOCKS: “Logitech International (LOGI) is a great way to play the resurgence in the computer industry. The company is engaged in the design and manufacture of a variety of computer interface devices, such as mice, joysticks, trackballs and so on. The firm sells its products directly to manufacturers of personal computers including HP, Dell, Apple, and IBM. Importantly, the company performs its high-volume manufacturing in China, creating relatively large profit margins of 8.3 percent. For the three months ended 6/30/03, net sales rose 12 percent to $218.2 million while profits fell to $0.12 per share on lower pricing. However, estimates for the rest of this year are for EPS of $1.98 in fiscal 2004 (ends next March) as the computer industry comes out of its three-year slump. With a current ratio of 2.6 and a 20 percent+ annual return on equity, this stock is a buy.”

— Walter Pearson, Pearson Investment Letter (pearsoncapitalinc.com, 12 issues/$160)

LOW PRICED STOCKS: “Buy online broker E-Trade Group (ET). This company’s new business lines offer promise while old ones bring profits. Analysts are raising their estimates for this company’s third quarter, with $0.15 per share the average EPS estimate. E-Trade has been an innovator since day one; it has become the most successful online broker, utilizes ATM’s for point-of-sale trading, and has now rolled out a mortgage product named Mortgage On The Move. which travels with the buyer when he or she moves to a new home. E-Trade has already originated $2.5 billion in mortgages through the first fiscal quarter. It is also benefiting from a turnaround in its institutional business, as it has begun seeing growth in transactions in Japan and Europe from hedge funds in the U.S. We see E-Trade as a timely, albeit speculative, buy.”

— R. Scott Pearson, Investors Value View (valueview.com, 12 issues/$129)

INCOME OPPORTUNITIES: “While the defense industry can look forward to years of increased budgets and demand, the stocks themselves have gotten ahead of themselves a little bit and are undergoing a typical pullback. However, Northrop Grumman (NOC) is still a great company with a phenomenal backlog. It’s the premier defense company in the United States, engaged in everything from systems for the new Joint Strike Fighter to shipbuilding and electronics. I assess their quality as top-drawer. Therefore, I recommend NOC’s E preferred stock to income buyers, trading around 103. It yields 7 percent, good money for a solid company these days, and it pays dividends quarterly.”

— Joe Shaefer, Investors Edge (investorsedge.us, 12 issues/$149)

— Steven Lord edits Advisors Digest from Tarrytown, N.Y. For questions or a free sample issue, write to slord@advisorsdigest.com.

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Steven Lord edits Advisors Digest from Tarrytown, N.Y. For questions or a free sample issue, write to slord@advisorsdigest.com.

(c) 2003, Steven Lord. Distributed by Knight Ridder/Tribune Business News.

JBLU, LOGI, HPQ, DELL, AAPL, IBM, ET, NOC,