Recap of Saturday, August 10:AMN Healthcare; FTI Consulting

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

David Asman: Elizabeth, Martha Stewart is not doing so well. One of her friends gets indicted and another friend is ratting on her.

Elizabeth MacDonald, senior editor: This is not a good time for Martha at all. Martha Stewart (MSO) stock is down to about $7. The question is will Martha go to jail? I say no. She's got a great group of advisors who have gotten a lot of other people off the hook. And since when is an accusation equivalent to a conviction?

David Asman: That's true but the evidence seems to be piling up, right?

Elizabeth MacDonald: What evidence? There's no tape recorded conversations with Martha Stewart and Sam Waksal. There's only "he said, she said."

Chana Schoenberger, staff writer: Yes but they can't prove that she didn't have that limit order that she said she had.

Elizabeth MacDonald: Right. That's obstruction of justice.

David Asman: Bottom-line does anyone here think Martha will go to jail?

Luisa Kroll, associate editor: Definitely. They could use her to just to make an example. She's on the frontline of this and people are hungry to put her away as an example.

Dennis Kneale, managing editor: I think she will fight this all the way to the Supreme Court and I think she'll win. She's not an insider. She doesn't work for that company and she's accused of insider trading. And no one can prove she had insider information.

David Asman: Okay that's the last word on Martha Stewart. Luisa let's move on to you.

Luisa Kroll, associate editor: The S & P 500 is down at a 4 1/2 year low so we thought we'd take a look at what the best blue chips are right now, based on where their trading price to earnings ratio. Some names to look at for are: Citigroup (C), Safeway (SWY), RJ Reynolds (RJR), Philip Morris (MO).

Dennis Kneale: She's definitely right. Look for dominate players and beaten down prices.

David Asman: Okay, Chana let's move on to you.

Chana Schoenberger: I have a company called Cognos (COGN). They make software that people are actually buying. Everyone knows that the tech industry has been lagging. They have this new interesting product that allows you to scorecard your workers. This is great because it creates a paper trail if you want to fire people.

Luisa Kroll: It's still trading at a fairly high P.E. though.

David Asman: Dennis, the FCC came out with a ruling that we have to change our television sets?

Dennis Kneale: That's right. By 2007 every television made shall have digital tuners to take down from the air a digital signal. Companies like Broadband, Xenith and ATI are going to suffer from this. 70% of people get their TV from a cable wire. 20% get it from direct satellite. Everyone's going to be paying $200 for a part of their television set that they don't use.

Makers & Breakers

AMN Healthcare (AHS)

Robert Maltbie, Millennium Asset Management: MAKER

AMN Healthcare is the big gorilla of the industry. They are a temp agency for hospitals. And they're playing to the demographics of our country. Our country is aging and hospitals are strapped for cash.

Mike Ozanian, senior editor: MAKER

It's a small market cap stock but it's very cheap relative to its sales. And it has no long-term debt.

Jim Michaels, editorial vice president: MAKER

There was a big private sale of about 10 million shares in May at $31 a share. It's down $10. The smart guys were willing to pay $31 for it. I think I'll pay $21.

FTI Consulting (FCN)

Robert Maltbie, Millennium Asset Management: MAKER

FTI Consulting is a company at the right place with the right stuff. In our opinion, their our solution to corporate malfunctions. They provide corporate consulting.

Jim Michaels: You own the stock right? What price did you get into it?

Robert Maltbie: About $38-$39.

Jim Michaels: BREAKER

I wanted to point out that you could have bought the stock for a couple of dollars a share a few years ago.

Mike Ozanian: BREAKER

Its earnings growth has been spectacular but its sales growth has been declining. It's impossible for a company to maintain its earnings growth when its sales growth is declining.