Glenn Paradis, BA, CFA Finning Int FTT-T DON'T BUY Oct 31, 2001

We reiterate FTT, the largest dealer of Caterpillar heavy equipment in the world, as a TOP PICK.  They announced $700 million of new orders in April, with orders from Chile, Canada, the UK and Ireland.   It trades at 12x earnings, under 2.5x book and supports a 20% ROE.  We like that cash reserves are growing, while debt is retired and shares bought back.  The dividend is backed by a payout ratio under 30% of cash flow.   We continue to recommend a stop at $34, looking to achieve $48 -- upside potential of 20%.  Yield 2.4%   

We reiterate FTT as a TOP PICK following recently reported record high free quarterly cash flow of $330 million.  Management commented that order backlogs are growing, while velocity of deliveries is growing.  It trades at 11x earnings, 2.1x book and supports a ROE of 20%.  We like that cash reserves are growing while debt is retired and shares bought back.  We continue to recommend a stop at $34, looking to achieve $49 -- upside potential of 19%.  Yield 2.6%

Our PAST TOP PICK with FTT is progressing well.  To remain disciplined, we recommend trailing up the stop (from $34) to $38 at this time.  

Our PAST TOP PICK with FTT has triggered its stop at $38.  To remain disciplined, we recommend covering the position at this time.