High returns from a low-key buy

Article Excerpt

Our Wall Street Stock Forecaster approach has three key rules: 1. invest mainly in well-established companies; 2. spread your money out across the five main economic sectors (we provide sector classifications in our monthly Portfolio supplements); 3. focus on stocks that are out of the media/broker limelight. This approach led us in our January 2001 issue to recommend a little-known trucking company, Arkansas Best. In the five years since then, Arkansas Best has roughly tripled for us; meanwhile, the Standard & Poor’s 500 has lost 1.4%. Arkansas Best still has the investment quality and competitive advantages that drew us to it five years ago. It has a spotless balance sheet, a strong reputation with customers and great cost-controlling skills. We still see it as a buy for long-term gains. ARKANSAS BEST CORP. $44 (Nasdaq symbol ABFS; WSSF Rating: Average) specializes in long-haul, less-than-truckload (LTL) shipping services, which combine freight from several different customers into a single truckload. LTL accounts for roughly 90% of…

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