Hot Stocks To Watch In Barron’s: NVS NSRGY ACL GE AMAT

Apr.14, 2008 in Market Outlook

Last Update: 4/14/2008 9:39:44 AM

NEW YORK (Dow Jones)–Below are companies mentioned in Barron’s whose stocks are
expected to move.

Novartis AG’s (NVS) agreement to buy Nestle SA’s (NSRGY) 77% stake in Alcon Inc.
(ACL) suggests Alcon is a desirable growth property; Nestle is a savvy
negotiator; and the Swiss drug giant is willing to pay up for future growth. The
deal also points out that Alcon accounts for about a fourth of Nestle’s market
value. Alcon can help Novartis diversify as the drug maker has experienced a
decade of health-care cuts, tougher regulation and generic competition. Novartis
had $38 billion in sales last year, but Alcon’s revenue is growing faster.

General Electric Co. (GE) is one of the best plays on the global-infrastructure
boom due to its strength in gas and wind turbines, jet engines and locomotives.
Despite first-quarter profit shortfall, GE’s risk/reward ratio still looks pretty
good. Even if 2008 guidance falls further, downside in the stock probably isn’t
much lower than $28.

Investors are excited about Applied Materials Inc.’s (AMAT) SunFab offering, a
line of equipment for making huge solar panels. But Wall Street has to wait until
its SunFab customers make and sell something before concluding Applied Materials
is a great solar company.

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