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The special lines retail industry is comprised of a variety of sectors and companies, the prospects for which are mixed in the late 1990s, but good earnings are forecast for 1999 and the year 2000. Retailers which are able to cater to the specific needs and tastes of consumers are in the best position for future gains, and most retailers are taking advantage of the growing electronic commerce trend. These stocks are timely in 1999, but not stable, and investors must be selective, especially for the next three to five years.

The shoe industry has begun to recover in 1999, but inventory buildups, weak margins, and promotional selling remain issues for both shoe retailers and manufacturers. Sales growth remains the key to economic prosperity in the future, but the financial rebound will be timed to each company in the industry. Only those investors who can make long-term commitments should select these stocks, as this industry has not completely recovered in 1999 and has an uneven future.

Corporate restructuring, foreign market penetration, and the introduction of digital products have led to good economic conditions for the office supply and equipment industry since 1993. Office supply distributors and retailers are also thriving, but the increased use of laser printers has led to declining business forms sales. Investors need to concentrate only on those stocks which are timely and have strong leadership positions.

Economic conditions have been good for the computer and computer peripherals industry in the first six months of 1999, but a slowdown which could continue through early 2000 is possible. Sales could be slow for the first half of the year 2000 due to Y2K concerns, but then could rise with good sales for the next three to five years. There are many timely stocks in this industry that are of interest to investors for 1999 and 2000 and through the years 2002-2004.

Firmer prices, reduced levels of inventory, and improved product demand have helped electronics industry stocks to increase their prices in the 2nd qtr of 1999. Cost cutting in the industry, expansion of overseas markets, such as Latin America and Asia, and increased content of electrical components are likely to help the industry recover further, also. Investors will find several timely stocks in this industry, many of which have good growth prospects over the long term.

Stocks in the electric equipment industry have increased in timeliness in the first half of 1999 after a long period of underperforming the market. The industry is increasing its consolidation, even though most mergers and joint ventures are modest, and global markets have become important, as well, especially Southeast Asia, Latin America, and Eastern Europe. Investors need to concentrate on the most timely stocks in this industry that have strong earnings and good markets.

The economic fundamentals for the trucking industry remain solid in 1999 and the growth trends for the truckload sector are good with consolidation and outsourcing in other industries being major factors. Strong demand for shipping is also providing favorable prospects for the less-than-truckload segment of the industry, but rising fuel prices have become a concern. These stocks are timely for 1999 and the year 2000, and several have price appreciation potential for the next three to five years.

CSX Corp and Norfolk Southern Corp have taken great care to integrate the operations they have acquired from Conrail after the split-up into their systems in order to preclude the problems that have ensued from earlier railroad mergers. Traffic and volume have softened for most US railroads and problems persist from the international economy and congestion in the Powder River Basin of Wyoming. Prospects for these stocks are not favorable for the near term of 1999 and the year 2000, but several do have investment appeal over a longer period.

Results for the retail store industry during the 1st qtr of 1999 indicate that earnings advances should be good for the industry throughout the year, both for the top- and bottom- lines. The discount store segment will see the greatest market share gain for the industry, but department store sales are expected to be more mixed, and there are marketing opportunities on the Internet. These stocks have outperformed the market since 1994 and 1995, but since their three- to five-year potential is not attractive investors need to be selective.

Top-line growth and system efficiency improvement are the two issues which railroad managements need to address in order for them to take pressure off margin and earnings growth for the industry in 1999. A slowing of the US economy will have an effect on this in 1999, as will industry consolidation, although most railroads are taking steps in the right direction. Risk-tolerant investors will find several of thes stocks to be suitable, but conserative investors should avoid the industry.

The global economic crisis, fundamental strengths, and low fuel prices have allowed the truckload sector of the trucking industry to perform well in 1998, but this may change in the future. However, there have been earnings shortfalls for the less-than-truckload sector, and the industry has also consolidated, as well. These stocks are timely in the 4th qtr of 1998 and several have price improvement potential for the next three to five years.

Consumer confidence in the US has decreased somewhat during the 3rd qtr of 1998, but interest rate cuts by the Federal Reserve Board should keep the economy going and a recession seems unlikely. Success in the retail industry in the 4th qtr of 1998 will depend on execution and the 1998 holiday shopping season, although some retail sectors are mixed. Investors need to focus upon growth companies for their selections.

Profits and share prices of the dominant athletic footwear companies have continued to be weak in 1998, and the industry may be further harmed by the lockout of players in the National Basketball Association during the 1998-1999 season. Non-athletic shoe companies are also beginning to be hurt, as well, and recovery is not expected for several quarters in the future. These stocks are not recommended for conservative investors in 1998.

More moderate consumer confidence and warmer-than-usual weather were the key factors in lower-than-expected same-store sales at many US department stores during the 3rd qtr of 1998, but share advances are expected through the years 2001-2003. Market share for discount stores sich as Family Dollar Stores and Dollar General continue to expand, as well. Investors need to evaluate individual stocks before selection.

The prospects for the office equipment and supplies industry for 1998 and 1999 are generally sound and Xerox Corp and Pitney Bowes Inc are expected to achieve double digit earnings. Sales for the retail office supplies sector have expanded, but the business forms segment of the industry is facing obstacles due to better computer printers and other innovations. Investors should concentrate only on the most timely stocks in this industry.

The computer and peripherals industry has had a poor year in 1998, but the prospects for the industry over the long term seem to be good. The economy for both the US and the emerging markets should improve over the next three to five years, and sales should improve beginning in 1999. These stocks are well ranked for 1998 and 1999 and many have price appreciation potential for the next three to five years.

Sales in the electronics industry have declined or slowed due to greater distribution channel inventories and lower demand in the Asian market for this industry's products. However, reducing expenses, strong management, and increasing electronic content of the products of other industries will have a positive effect. These stocks are below average for timeliness in 1998, but several have substantial potential through the years 2001-2003.

Stocks of the electrical equipment industry fell about 25% during the 3rd qtr of 1998, compared to an average drop of 14% of the market as a whole for that period, owing to global uncertainty and other problems. Industry earnings have improved, however, due to better margins and top-line growth. Investors should consider these stocks only on an individual basis as the industry is below-average in timeliness for late 1998.

Trucking and transport leasing have benefited from lower fuel prices and the good US economy, but the expected slowdown may hurt Less-than-Truckload carriers. Cautious investors have sold off in spite of predictions for high demand and good growth. Stocks that present good investment opportunities include M.S. Carriers, Swift Transportation and Werner Enterprises.

Firm fundamentals and strong demand by consumers has continued to benefit the trucking and transport leasing industry in 1997 and 1998, and both the truckload and less-than-truckload sectors should continue to profit. The Teamsters National Master Freight Agreement has also been re-negotiated earlier than had been anticipated, and a strike is not likely. These stocks are timely in early 1998, and several are of interest to investors.

Price increases for goods and services in the electrical equipment industry have been limited by competition in the late 1990s, and companies need to find other methods to improve earnings. Outsourcing has been found to be cost-effective for some firms, but currency risk and underdeveloped markets are problems for foreign operations. Investors need to be selective and must consider only the most timely stocks for commitment.

The industrial services industry features staffing and outsourcing companies, janitorial services companies, laundry services companies, information services companies and corrections services companies. The timeliness, capital structure and financial information for each company are provided.

Merger activity in the railroad industry is causing concern for safety, ontime delivery and capacity. These delays are affecting the US economy in a significant way. Each railroad stock offers unique investment properties and investors must review them carefully. Price stability and high dividends are the properties that conservative investors should look for when purchasing railroad stocks.

Strong customer demand, healthy economic conditions and a stable rate were beneficial for the economic conditions of the trucking and transport leasing industry during 1997. The stocks of the industry performed well during 1997 and could continue to do well through 2002. There are risks involved in these investments but they might pay off during early 1998.

The makers of athletic footwear have begun facing tough economic times in 1997 with a volatile shoe market that is driven by fashion trends and other factors. The Asian and other international markets have also become more important to the industry for its future growth, as well as worldwide sports marketing. These stocks have three- to five-year appeal for investors, but are untimely and volatile for 1997 and 1998.

The outlook for the 1997 holiday shopping season is good compared to 1996 with higher consumer confidence due to a higher minimum wage, continued personal income growth and low unemployment. The selling environment for books, video games, toys, consumer electronics and soft lines is also good in 1997 and this should continue through 1998. Investors must select stocks in this industry that are timely for both the near- and long-term.

The outlook for apparel textiles is fair after a good year in 1997 for both the man-made and natural fiber segments of the textile industry, due to more stable material prices and better inventories. Home furnishing textiles are also expected to outperform apparel textiles in 1998, and Mexico, which uses US textiles, has become the leading US apparel supplier. Investors must be selective in buying these stocks, as the industry has become less timely.

There is little competition or product overlap in the electrical equipment industry, and there is broad diversity and multiple product lines for most companies, which makes stock selection difficult. Acquisitions and spin offs have been common trends within the industry during the mid-1990s, as well. Investors should concentrate on more timely stocks, since the electrical equipment industry is in the lowest quartile of investment timeliness.

The US economy is expected to have an average growth rate of 2% to 3% in the late 1990s and the early years of the 21st Century after slowing in the last half of 1997. Spending on durable goods, such as computers and peripherals, is expected to reach 10% in 1997 and average 6% to 8% through the years 2000 to 2002, making these growth industries. Many stocks in these industries are forecast to outperform the market in 1997-1998 and through 2000-2002.

There have been double-digit earnings gains at several office equipment manufacturers due to increased demand for high-end equipment and other factors. The use of laser printers has led to a shipment decline of business forms which have hurt the earnings of some forms makers, but the three leading office retailers are thriving. Timely stocks that are market share leaders need to be the focus of investors in the office supplies industry.

Increased demand by business and consumers for both applications and products have given some companies in the electronics industry renewed strength for earnings and long-term growth. Foreign sales are also becoming important as demand for electronic components is growing in developing areas, and expense control is also benefitting many companies. There are attractive stocks in this industry for investors, as its timeliness rating has increased.

The less-than-truckload (LTL) segment of the trucking industry has been robust during 1996 and 1997, and rates have increased and stabilized, as well. Package volume for some LTL carriers increased during the Teamsters strike against United Parcel Service, in addition. However, the upcoming National Master Freight Agreement renegotiation is a concern. These stocks, some of which have potential, must be considered on an individual basis.

The semiconductor industry is expected to have record sales and profits for 1997, and the companies comprising the industry are expected to prosper in the future with the expanding economy. Integrated circuits have become needed components for networking systems and cellular phones, as well as for microprocessors, and demand is expanding. These stocks are timely for 1997 and the earnings outlook for the years 2000-2002 is excellent, also.

Financial results for special lines retail stores are as mixed as the numerous types of stores that make up the industry and although sales were good in February and March, 1997, they slowed considerable in April. Many sectors, even those doing well, are not likely to show much improvement and will have slow growth rates. Investors should seek companies with high growth potential or those that cater to price-conscious consumers.

The development of international markets, a host of acquisitions and growing demand for new office systems and digital equipment portends a highly successful 1997 for the office equipment and supplies industry. Short-term investors should be attracted to many of the individual companies within the industry, especially those who are leaders in their business types and have good Timeliness ratings.

Raw materials prices and ongoing cost reductions are expanding the operating margins at specialty chemical companies in the late 1990s. In addition, the industry is not prone to cycles, as demand for specialty chemicals does not soften with the economy. The industry is also consolidating to combat flat volume growth and mediocre pricing power. Some of these stocks are ranked favorably for 1997, but the industry is expected to underperform the market.

Only a handful of the diverse specialty chemical industry companies are expected to be of value to investors from 1997 through the end of the century and will offer few attractions other than that they will have stable earnings and will probably outperform basic chemical companies. Best expectations are that 1996 marked the end of rising raw material costs and that the current economic cycle is reaching a point generally favorable for specialty chemical stock margin expansion.

Some trucking companies are performing better, but that improvement may not continue. The merger of freight railroads Conrail and CSX, if consumated, could result in lost market share for less-than-truckload carriers such as American Freightways and CNF Transportation's Con-Way group, which serve the East. The trucking industry has a middle-of-the-pack Timeliness rank, but investors are advised to place their funds elsewhere.

The industrial services industry will report solid profit growth for 1996, but its Timliness rank has dropped since June. Since September, investors have in large part ignored the industry, but some companies offer above-average price performance prospects for the 6- to 12-month time frame. Most personnel-placement stocks have good appreciation potential for the three- to five-year time frame.

The forecast for the 1996 Christmas shopping season is good with high consumer confidence levels, along with the factors of supply and demand. However, specific retailers may have problems in 1997 since a slowdown in the US economy is expected, and consumer confidence and spending are not likely to be maintained. Investors in 1997 must carefully select those retail stocks with well-defined opportunities and proven records of success.

The cyclical nature of fashion trends for the shoe industry and industry dependence on them have been increasing the amount of market risk for niche companies. However, some companies will continue to experience slow growth, although the footwear market in the US has matured. The international market is also expected to expand through the end of the 1990s. Investors should diversify holdings in this industry to alleviate risk.

Computer industry and computer peripherals industry securities have all the appearances of being a good investment, not only for 1996 but for the next 3 to 5 years, but investors must be wary that volatile prices can affect corporate earnings and that much of both industries' success will be based on economic conditions throughout the world. If the international economies continue to grow, a drop in the industries prices could easily be offset by increased demand and sales that would increase profits despite price cuts.

Investors can expect that most semiconductor industry securities will become highly sought prizes and they will again experience phenomenal growth as new technologies develop and cyclical corrections are made. Many semiconductor industry stock values have rebounded to almost the levels they had reached before the unexpected drop in 1995 send stocks crashing to half their former value. While technology securities are generally volatile, semiconductor securities have a remarkable growth history.

New digital products, the demand for expensive office equipment and the opening up of the international market are major factors that should bring good earnings and sales to the office equipment and supplies industry in 1997 but investors should review individual companies for their timeliness ratings and their standings as industrial leaders. Companies with strong financial positions and those interested in offering distribution and proprietary form-management services will offer best growth possibilities.