In it for the long haul – William Roach of Globalt Inc – Brief Article – Statistical Data Included
Tanisha Ann Sykes
William Roach Jr. stands by his floundering picks
Commitment is the name of the game for William H. Roach Jr., president of Atlanta-based Globalt Inc., who remains zealous about his picks from last year, despite the trouncing some of them took as the market continues to blow hot and cold. His Private Screening portfolio returned 1.08% since recommendation. Roach seeks out U.S. companies with great exposure to foreign markets, with as much as 80% of revenues from overseas.
Roach deems that the uncertainty of the market, “caused by [such factors as] rising oil prices, slowing of world economies, the disappearance of dotcoms, and the tightening of lending and venture capital,” has been unkind to his picks, he says. These factors, Roach says, have driven the tech sector down 40%, and telecommunications down 39.7% in 2000, while the S&P 500 declined 9.1% for the same period.
JDS Uniphase Corp. (Nasdaq: JDSU), a San Jose, California-based manufacturer of fiber optic telecommunications components products, slipped 47.77%. Contributing to its decline: “slowing economy both domestically and overseas,” says Roach.
Honeywell International (NYSE: HON), a Morristown, New Jersey-based maker of aerospace, automation, and transportation products had a 21.05% slip since recommendation. After its merger with Allied Signal last year, aerospace products accounted for 40% of Honeywell’s sales. Now, the company is on the move again after agreeing to be acquired by General Electric.
AES Corp. (NYSE: AES), a leading independent power producer based in Arlington, Virginia, took a slight dip of 10.65%. “With the California power crisis and rising energy prices, the stock is showing some short-term weakness. However, its prospects for the future are very bright,” says Roach.
Two picks made it into the black, Medtronic Inc. (NYSE: MDT) and EMC Corp. (NYSE: EMC), with total returns of 25.37% and 22.46%, respectively. The Minneapolis-based Medtronic creates devices that help regulate erratic heartbeats, tremors, and vascular diseases. Roach thinks Medtronic is still a top company in the medical technology space, with annual expected growth of 18%. Recently, the company bought Xomed Surgical Products, a maker of products for ear, nose, and throat specialists.
EMC is the top maker of mainframe computer storage programs for hardware and software. Based in Hopkinton, Massachusetts, EMC gained 22.46% since recommendation.
COPYRIGHT 2001 Earl G. Graves Publishing Co., Inc.
COPYRIGHT 2001 Gale Group