Don Wordell
Don Wordell is portfolio manager of the $3.2 billion RidgeWorth Mid-Cap Value Equity Fund (SAMVX), Orlando. Tom Forester is portfolio manager of the $145 million Forester Value Fund (FVALX), Lake Forest, Illinois.
Alaska Air Group, Inc. (ALK) offers extensive service in the western US, Canada and Mexico as well as passenger and cargo service within Alaska. The airline has a strong balance sheet and is just starting to boost fee income—such as baggage fees and ticket-change fees—to bring it in line with other airlines. This could help raise profits by 27% next year. Uncertainty about fuel prices and the possibility of heightened competition in Seattle could hold share prices down, but management is strong and should be able to cope. The dividend of $0.80/share/yr. recently yielded 1.3% and appears secure.
Fiscal year: December. Earnings per share: 2014 est./$6.33…2013 est./$4.99…2012/$4.73.
Mylan Inc. (MYL), a major producer of generic drugs, will benefit from an aging US population’s medication needs and the increasing use of generics in Europe. A number of branded medicines will come off patent in the next few years—boosting Mylan further. Ironically, its growth may be held back by its own branded products, such as EpiPen for severe allergic reactions, which goes off patent in 2015. But Mylan still should manage 13% annual revenue growth and 16% annual profit growth for the next several years.
Fiscal year: December. Earnings per share: 2014 est./$3.34…2013 est./$2.87…2012/$2.59.
Bottom Line/Personal‘s experts have beaten their respective benchmarks over the most recent five-year period or longer. We ask each contributor to choose one stock that he/she thinks has significant appreciation potential over the next 12 to 24 months.
