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Non-Tech : Foster Wheeler (FWC) beaten down but why -- Ignore unavailable to you. Want to Upgrade?

To: JR2 who wrote (11)	3/10/1999 10:04:00 AM
From: Loretta Fern	Read Replies (2) \| Respond to of 24

Just began looking into FWC. According to Value Line the 1999 book value is $17.30. Another factor to consider in its low stock price is that it is a small cap stock. As this sector has done poorly there is probably a disproportonate decline in the stocks price relative to large cap issues like FLR. With a dividend yield above 6% and good 3-5 year price appreciation potential, Value Line has FWC ranked 6th best in regards to 3 to 5 year price appreciation potential. This potential is dependent on Asian economies rebounding, oil prices rising, and more market interest in value and small cap issues. If one wants to buy and wait, some money could be made on the dividend and selling covered calls until the above mentioned factors materialize. IMO, downside risk from here should be limited, though that appeared to be true when the stock price was around $20.