Fourth, I'll highlight K-Swiss Inc., an athletic-
shoe maker with headquarters in Westlake Village,
California. I own K-Swiss shares both personally
and for clients.
Last year, K-Swiss earned a 31 percent return on
stockholders' equity. It has no debt and sells
for 14 times earnings.
In an unusual move for an athletic-shoe maker, K-
Swiss eschews celebrity-athlete endorsements. Yet
it has boosted earnings at a 32 percent annual
clip the past five years, and revenue at a 22
percent pace.
Finally, Marvel Enterprises Inc. looks attractive
at $13.90, or 15 times earnings. The New York-
based company owns the rights to some 4,700
characters, including Spider-Man and the X-Men.
Marvel's publishing unit controls about a third
of the U.S. comic-book market. Still, most
revenue comes from toys. Licensing characters to
movies is also an important, yet more sporadic,
part of the picture.
Marvel earned 42 percent on equity last year and
has no debt