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Recap of Saturday, May 11:Gold Fields, Ltd.; Credit Acceptance Corp.

Our panelists give you the scoop on all the inside business information before you hear it anywhere else in The Informer segment:

David Asman: Dennis, AOL (AOL) has some big time competition? Tell us about it.

Dennis Kneale, managing editor: Microsoft (MSFT) is really bent on beating their competition. There's a lot of things wrong with Microsoft network but every time they have something wrong, they keep going at it and going at it until they get it right. AOL has 30 million subscribers. Microsoft only has 8 million. A funny thing happened last quarter though, AOL and Microsoft both signed up a million more net subscribers.

Bruce Upbin, senior editor: If anyone can put the hurt on AOL, it's Microsoft. Microsoft has $38 billion in cash. AOL only has $700 million in cash. Who can spend the money to win?

Dennis Kneale, managing editor: That's right, Microsoft can. They're going to re-launch the site with even more parental controls. They're also launching a new feature to the X-Box where you can play with anyone anywhere in the world and talk to them over the Internet.

David Asman: Okay, Bruce what information can you give us on Bristol-Myers Squibb (BMY)?

Bruce Upbin, senior editor: Bristol's share has gone down half within a year. But I think it's oversold. It's true they've gotten nailed for lots of patent expirations. But they have a lot of new drugs on the way and they're a good take-over candidate.

Elizabeth MacDonald, senior editor: Being that the numbers aren't too good, don't you think Novartis or Pharmacia could pick them up?

Bruce Upbin, senior editor: Sure. They have a huge sales team in the U.S. and a European company would love to have that sales team.

Luisa Kroll, associate editor: I think this stock is too risky. The inventory situation continues to get worse. One of their drugs that they thought was going to hit it big has already disappointed. They found out that there are some serious side effects associated with that drug.

David Asman: Okay, Elizabeth. What can you tell us about Martha Stewart?

Elizabeth MacDonald, senior editor: We used to think Martha Stewart Living Omnimedia (MSO) stock was a good thing. It's a bad thing right now. It's at $18. I say buy it at $15. Their operating cash flow has plunged by 50 percent.

Bruce Upbin, senior editor: I had dinner with Martha the other night. She's not sweating this at all. She has a sweetheart deal with K-mart that pays her no matter how bad they're doing.

Elizabeth MacDonald, senior editor: But the rumor is she might go to Sears.

Dennis Kneale, managing editor: This is the best single brand franchise in its space. She's terrific. Buy it and hold on to it for five years.

David Asman: Okay let's move on to you Luisa. What can you tell us about Big Lots?

Luisa Kroll, associate editor: Big Lots (BLI) has a very interesting niche. Big Lots buys all the unwanted closed-out items from companies like Procter & Gamble, K-mart, Mattel at prices 20-30% lower. The prices are really unbeatable.

David Asman: But it's had a very tough road right?

Luisa Kroll, associate editor: Yes, they've had a very tough time. It's stock was up at 50 a while ago and it was a real Wall Street darling. But people lost favor with it because it was so disorganized. They've spent a lot of time fixing up everything and getting things back on track.

Elizabeth MacDonald, senior editor: I think this is a good play. When companies like K-mart go into bankruptcy, these guys come in and pick up the excess inventory.

Makers & Breakers

Gold Fields, Ltd. (GFI)

Price Headley, MAKER

Gold Fields, Ltd. is a South African gold producer that doesn't actually hedge their productions. So it benefits especially as gold prices go up.

Bill Baldwin, editor: BREAKER

I love this stock except for a few little things. One is that gold is a barbarous relic. The other thing is a lot of the assets in this company are in shaky political regimes like Ghana. The third thing is that its PE is very, very high.

Mike Ozanian, senior editor: MAKER Who knows what's going to happen with gold prices. It's totally unhedged with price movements. If you think gold is going to increase more, then buy it. It's already up 15 percent this year. If you don't think gold is going to go up any further than stay away from it.

Credit Acceptance Corp. (CACC)

Price Headley, MAKER

Credit Acceptance Corp is a play on the auto industry. This company gives auto loans to higher risk individuals. With auto sales booming, we think there's a lot of growth in this company.

Mike Ozanian, senior editor: BREAKER

Their cost of capital has overshot their return on capital by two hundred basis points over the last 2 years. That's with interest rates declining. You cannot maintain earnings growth under that scenario.

Bill Baldwin, editor: BREAKER

I like this company except for a few things. The main owner used to be in the used car business. He lends money to dead beats. The latest thing is they've got this off balance sheet special purpose entity to hold all their dubious assets. You know who made S.P.E's famous? Enron.

Price Headley, We think value stocks are the way to go and this stock is coming out of a region where it's been a value and it's starting to turn up.