Richard Lehmann Recommends Preferreds On the Following Stocks: Entertainment Properties,...

Business Editors

CHICAGO--(BUSINESS WIRE)--Dec. 23, 2002

With uncertainty running rampant in the marketplace, investors should seek out opportunities with low downside risk. Richard Lehmann says that convertible preferreds are a good way to do this, and he offers a trio of recommendations

that should serve as good yields in this turbulent environment. Read his takes on the preferred convertibles of Entertainment Properties Trust (NYSE:EPR), Provident Financial Group, Inc. (NASDAQ:PFGI), and U.S. Cellular (NYSE:USM). Click here for the full story exclusively on Zacks.com: http://featuredexpert2bw.zacks.com/

Here are the highlights from the Featured Expert column:

Uncertainty remains very high. Hence investors should not assume that downside risks have declined. More than ever, it is important to maintain a balanced portfolio between equities and fixed income securities. Also keep in mind Richard Lehmann's endorsement of convertible preferreds, which pay a good current yield. Such securities are best positioned to benefit from the current outlook and yet provide a hedge against uncertainty.

Entertainment Properties Trust (Symbol EPR A)

Entertainment Properties Trust (NYSE:EPR) is the only publicly traded real estate investment trust (REIT) concentrating on real estate assets leased to entertainment operators. The company reported third quarter (September 30) rental revenues of $18.8 million, a 38% increase from the $13.7 million reported for third quarter 2001. Funds from Operation (FFO) on a fully diluted basis increased 22% to $10.7 million and net income was up 16% ($7 million) compared to $6.1 million for 2001.

Provident Capital Trust III (Symbol PCE)

This hybrid issue is guaranteed by Provident Financial Group, Inc (NASDAQ:PFGI), a commercial banking and financial services company. For third quarter 2002, the company announced net income of $30.4 million compared to a loss of $7.4 million for the same period in 2001. Net interest income was $125.3 million versus $123.7 million last year. Provident has been serving customers for 100 years and their conservative growth strategy reflect in their solid balance sheet.

United States Cellular Corporation (Symbol UZG)

U.S. Cellular (NYSE:USM) provides cellular telephone service to about 3.9 million customers across 25 states, which include about 149 cellular, and PCS markets. For third quarter 2002, USM reported revenue of $597.5 million compared to $501 million for third quarter 2001. USM is an aggressive growth company in a very competitive industry. Lehmann likes their strategy, and the addition of the Chicago and Central Illinois market, which they announced this month, will be a big contributor to their subscriber base.

Before you start testing the waters with preferreds, make sure to get more information on the above-mentioned issues and specifics on the preferreds `families' that Richard Lehmann has designated by clicking: http://featuredexpert3bw.zacks.com/

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