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COPYRIGHT 2003 Adams Business Media
Jeff Pittsburg wants cash. In these uncertain times, Pittsburg Research, a small independent research firm based in Great Neck, N.Y., views cash flow as the key metric in deciding what companies to recommend. In a world where most analysts are very earnings-fixated, "We're not," Pittsburg says. "We are cash-flow fixated."
Pittsburg analysts are looking for long-term investments. Even through the go-go days of the late 1990s, when the popular thing to do was chase growth, Pittsburg stuck to his value-focused philosophy. "We made some unpopular picks," he says. However, unpopular didn't mean unprofitable. When everyone else was focused on tech stocks and Internet IPOs, Pittsburg recommended Lockheed Martin Corp. (LMT). The defense sector was out of favor at the time, and Lockheed was trading at around $17 a share. The war on terrorism made defense stocks popular again, but Pittsburg bailed out of Lockheed last summer. "We'd gotten everything out of it that we were looking for," he says. "That example points out one of Pittsburg's tenets--he likes value stocks until growth investors start climbing on board, pushing valuations up. He believes that's when it's time to look for the next out-of-favor stock or sector.
THE MASTERS' THEORIES
"Our research started out with three...
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