Gene Marcial, Business Week’s stock picking guru, recommended the following stocks in the 8/18 issue:

1. Disney

a. Despite high gas prices and the spike in airline fares exacerbated by flight cutbacks, Walt Disney has pretty much avoided serious bumps.

b. Disney delivered solid results for the third quarter ended June 28, with earnings of 66 cents a share vs. 58 cents a year ago. Its parks posted a 5% rise in sales.

c. Disney leverages its content franchises across multiple platforms.

d.  Disney has been buying back stock—$1.5 billion in the first quarter, $900 million in the second, $1.5 billion in the third.

2. VIA Pharmaceuticals

a.  Three hedge funds dumped 1.5 million shares, driving the stock down to 1.69 from 3.10 in March.

b. VIA is now even more attractive at this price,” says Soham Pandya of investment firm ThinkPanmure (it did business with Via). He pegs the stock a buy with a target of 5.

c. Via’s lead compound, VIA-2291, seeks to reduce inflammation in blood vessel walls, an underlying cause of atherosclerosis and related ailments, including heart attack and stroke; it is in Phase II clinical tests, and Pandya expects positive data by yearend.

3. China Direct

a. The Deerfield Beach (Fla.) outfit does business in China through China-based companies in which it has controlling stakes.

b.  China Direct now controls eight Chinese companies, including four that process magnesium, used in metallurgy and manufacturing. China produces 80% of the world’s magnesium.

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