NEW YORK – As part of this year’s survey of chief executive compensation at America’s largest companies, Forbes analyzed pay and performance of individuals who have held the top job for three years or less. Of these 172 executives, 62, or 36%, have delivered to shareholders annualized total returns of 15% or greater during their brief tenures.

Some of these corporate chiefs owe their star status to simply being in the right company or industry at the right time. But for others, it’s more than coincidence at work.

Take Waste Management, for example. In November 1999, A. Maurice Myers took the helm at the Houston-based waste disposal concern. Between then and April 5, 2002, Waste Management shares show an annualized total return of 24%, significantly outpacing the -8% return for the S&P 500 during that time.

Prior to Myers’ tenure, the company had been dogged by numerous problems, including an accounting scandal, a heavy debt load and insider-trading charges related to its merger with USA Waste in 1998. Myers set about divesting non-core assets and refocusing on the company’s North American solid waste business. The insider-trading charges were settled in November 2001 with a $457 million payment to plaintiffs.

Result: Waste Management’s net income went from a loss of $398 million in 1999 to a profit of $503 million in the firm’s latest fiscal year, ended in December. Perhaps more important than net results, Waste Management’s excess cash flow margins have improved from 3% in 1999 to 9% in 2001.

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NEW YORK – It’s been a bad year so far for many technology stocks. On a relative basis, information technology stocks in the S&P 500 have lagged behind the performance of the broader index by 10% in 2002, while the exchange traded fund tracking the Nasdaq 100 index has lost 17% of its value since early January.

Despite these declines, many technology bellwethers are anything but undervalued. Cisco Systems and Intel carry estimated 2002 price-to-earnings (P/E) ratios of 48 and 43, respectively. In contrast, the S&P 500 sells for 30 times estimated 2002 profits.

Using the latter multiple as a benchmark, we looked for cheaper technology investments. Autodesk (nasdaq: ADSK – news – people ), for example, has an estimated 2002 P/E of 17. The San Rafael, Calif.-based firm’s AutoCAD software is popular with animators, mapmakers, and architectural and mechanical designers.

Down 18% from a 52-week high of $47, Autodesk shares look undervalued by several measures beyond estimated earnings multiples. The stock sells for 11 times cash flow (in the sense of net income plus depreciation and amortization) versus a five-year average price-to-cash-flow multiple of 13.

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NEW YORK – Among children’s emotional health issues, perhaps none has stirred more controversy than the use of drugs to treat attention deficit/hyperactivity disorder. Parents, health professionals, teachers and legislators have raised concerns about such medications–including abuse, harmful side effects and the temptation for school officials to “dope up” any child who acts up in class.

The American Academy of Pediatrics estimates that attention deficit/hyperactivity disorder (ADHD) affects between 4% and 12% of school age children, while the National Institute for Mental Health says there is at least one child in every American classroom who needs help dealing with the condition.

Despite the widespread recognition of the effectiveness of ADHD drugs in the context of a comprehensive and well-supervised course of treatment, concerns remain. No surprise, politicians are getting involved in this issue. In June 2001, for example, Connecticut Governor John Rowland signed a bill–passed unanimously in that state’s legislature–prohibiting school personnel from directly recommending psychotropic drugs for any child.

The controversy hasn’t kept drug companies from entering the field. A June 2001 report from the Pharmaceutical Research and Manufacturers of America listed 14 pediatric psychiatric drugs in the development pipeline. Seven of these drugs were described as attention-deficit treatments.

Jake Nunn, principal with MPM Capital’s BioEquities Fund, estimates that the market for ADHD drugs is growing at an 8% to 10% average annual clip and will exceed $1 billion this year.

Among the big drug companies, Eli Lilly (nyse: LLY – news – people ) hopes to grab a piece of the ADHD market. In late October, the Indianapolis-based company filed an new drug application (NDA) with the Food & Drug Administration for atomoxetine, a non-stimulant based ADHD therapy. The NDA review process usually lasts a year and a half.

Beyond countering the “doped-up” image that accompanies stimulant-based drugs, such as Novartis’ (nyse: NVS – news – people ) widely-prescribed Ritalin, atomoxetine is long-acting, so children need not visit the nurse for a dose during the day. “Marketing something with less stigma could give a firm a nice boost and bring interesting growth to the category,” says Nunn.

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NEW YORK – From 1996 to 2001, data from the Conference Board show that orders for non-defense capital goods rose 7% on an annualized basis. Companies that have kept up a more robust pace of capital spending could be well-positioned if the recovery continues.

Example: Griffon (nyse: GFF – news – people ) has increased its capital budget by 18% (annualized) over its past five fiscal years, which end in September. The Jericho, N.Y.-based company makes garage doors; plastic films for personal care products such as diapers; and communication systems for military and municipal use.

Griffon has devoted capital expenditures toward automating its factories and increasing production. Research and development is an important component. In plastics, for example, the company operates a center where 30 scientists and engineers develop new products. On the communications side, Griffon internally funded the development of an airborne maritime-surveillance system.

Full story at Forbes.com