R. BRENT BYRNE, Chairman, founded Divi-Vest Advisors, Inc., in May of 1990.

TWST: Let us look at some of your holdings. What's attractive currently?

Mr. Byrne: We touched on energy stocks. What better place to look than the worst performers for the last year and a half. Energy stocks have basically been run down by factors and conditions unrelated to their management teams. They are being driven by external factors, namely extremely warm weather conditions. The global temperature rise over the last two years has really hit home. The second problem, which also has impacted the demand side of the equation, is the slowdown in Asia/emerging market consumption. A third factor, of course, has been the reemergence of Iraqi oil. Externally, there's been a bottleneck of unfavorable demand and supply problems that have collectively put a damper on the price of crude oil. All energy companies have been affected, around the globe. From a value perspective, the time looks ripe for investment.

TWST: How about some names?

Mr. Byrne: The first energy stock that I would recommend is KN Energy (NYSE:KNE, $19 1/16). The stock has come down quite a bit from its high toward $40 a share. The dividend at this point is above 4%. We view the potential for this company to grow their dividends in the double-digit range over the next three to five years. From a total return standpoint, we feel KNE offers above-market potential. KNE is the sixth largest integrated natural gas company in the U.S. They could possibly be bought out by a larger firm, given KNE's extreme price drop. Mergers are now running rampant throughout the energy world, spurred by weak energy prices.

This interview is a small excerpt from a comprehensive interview published in The Wall Street Transcript on 3/8/99. For more information call (212) 952 7400 or visit our website. The Wall Street Transcript does not endorse any of the comments made by interviewees, and does not make stock recommendations.

Copyright 1999, Wall Street Transcript Corp.