7/18/07

Economics

protectionism (Free trade is a major positive for world and US economic growth.) Some thoughts on a few trade issues:

http://www.danieldrezner.com/archives/003397.html

fiscal profligacy (Government spending as a percent of GDP is too high and the looming explosion in entitlement expenditures will make it worse. There is no good solution save spending discipline.) The Senate versus the House on earmarks:

http://www.nytimes.com/cq/2007/07/17/cq_3098.html

Politics

Domestic

International War Against Radical Islam

The current state of progress with North Korea’s nuclear facilities:

http://www.pajamasmedia.com/2007/07/is_north_korea_seriously_disar.php

The Market

Technical

Fundamental

We have been stressing that the sub prime problem is not over:

http://bigpicture.typepad.com/comments/2007/07/contain-this-pa.html

News on Stocks in Our Portfolios

A positive writeup on Medtronic (Aggressive Growth Portfolio):

http://www.thestreet.com/_htmlmdb/newsanalysis/healthcare/10368278.html

Abbott Labs (Dividend Growth Portfolio) reported second quarter operating earnings per share of $.63 versus estimates of $.68 and $.40 reported in the comparable quarter of 2006.

EPS: 2006 $2.62, 2007 $2.82, 2008 $3.20; DVD: $1.30, YLD 2.3%

http://finance.yahoo.com/q?s=ABT

Altria (Dividend Growth Portfolio) reported second quarter earnings per share of $1.15 versus expectations of $1.13 and $1.28 recorded in last year’s second quarter. It also announced that it was acquiring an additional 30% (brings MO’s holding to 80%) of a Mexican tobacco company.

EPS: 2006 $5.70, 2007 $4.25, 2008 $4.50; DVD: $2.75, YLD 4.9%

http://finance.yahoo.com/q?s=MO

Marshall and Ilsley (Dividend Growth Portfolio) reported second quarter operating earnings per share of $.84 versus expectations of $.85 and $.79 reported in 2006’s second quarter.

EPS: 2006 $3.22, 2007 $3.35, 2008 $3.55; DVD: $1.20, YLD 2.6%

http://finance.yahoo.com/q?s=MI

Northern Trust (Dividend Growth Portfolio) reported second quarter earnings per share of $.92 versus estimates of $.88 and $.76 recorded in the comparable 2006 quarter.

EPS: 2006 $3.00, 2007 $3.40 2008 $3.75; DVD: $1.00, YLD 1.6%

http://finance.yahoo.com/q?s=NTRS

Market Analysis

More Cash in Investors’ Hands

Bassell is buying Lyondell for $12 billion in cash.

Plains Exploration is acquiring Pogo Producing for $3.6 billion, 41% of which is in cash.