1/14/08

Economics

On W’s economic stimulus proposals:

http://www.nysun.com/article/69196?page_no=1

And what should be done:

http://www.spectator.org/dsp_article.asp?art_id=12547

protectionism (Free trade is a major positive for world and US economic growth.)

http://www.ibdeditorials.com/IBDArticles.aspx?id=284861612413739

Politics

Domestic

A review of McCain’s record:

http://article.nationalreview.com/?q=YjUzOGY0ODA1YzBmNjFhOWE5NWU0OTY5NTZiOGNhOGQ

A review of Huckabee’s record

http://www.clubforgrowth.org/2008/01/the_true_story_of_mike.php

International War Against Radical Islam

John Bolton on North Korea:

http://online.wsj.com/article/SB120001236110482565.html?mod=opinion_main_commentaries

The Market

Technical

I mentioned in a recent Morning call an old Wall Street saw about the Market direction in this first days of January being an indicator of stock price direction for the entire year. Here is a statistical analysis:

http://www.marketwatch.com/news/story/poor-start-us-stocks-doesnt/story.aspx?guid=%7B46D91061%2D2075%2D4C6C%2D9E10%2D3D9BE2CABDB5%7D&dist=morenews

Fundamental

Subscriber Alert

The stock price of 3M (MMM-$78) has fallen below the lower boundary of its Buy Value Range. Accordingly, MMM is being Removed form the Dividend Growth Buy List. The Dividend Growth Portfolio will continue to Hold this stock.

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

The stock price of Penn Virginia Resource Partners (PVR-$27) has risen above the upper boundary of its Buy Value Range. Therefore, it is being Removed from the High Yield Buy List. The High Yield Portfolio will continue to Hold PVR.

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

The stock prices of Mastercard (MA-$179) and Best Buy (BBY-$44) have fallen below the upper boundary of their respective Buy Value Ranges. Accordingly, they are being Added to the Aggressive Growth Buy List. The Aggressive Growth Portfolio will not purchase these stocks at this time.

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

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

The High Yield Buy List

Company Close 1/11 Buy Value Range

US Bancorp $29.85 $29-34

Buckeye Pipeline 49.15 47-52

Alliance Resources Ptrs 35.04 33-38

AJ Gallagher 23.65 23-26

Martin Midstream Ptrs 35.84 35-40

Worthington Industries 16.17 16-18

Company Highlight

Penn Virginia Resource Partners is a limited partnership with operations in coal mining and natural gas. The partnership has grown profits and dividends at a 13-15% pace over the last five years and earned a 15-20% return on partnership capital. Growth should continue as a result of:

(1) the long term outlook for strong demand for coal along with its rising price,

(2) coal revenues are generated from royalties allowing PVR to avoid the high operating costs, along with environmental, labor and regulatory risks,

(3) the partnership structure provides it a low cost of capital advantage when acquiring energy assets; acquisitions will contribute to PVR’s long term growth rate,

(4) natural gas which is a relatively new segment of the company’s business, has exceeded management expectations and should continue to do so.

The PVR units are rated B+ by Value Line. Its stock yields over 6% and with dividends expected to grow at least 8% annual rate, PVR offers an attractive total rate of return.

Buy Value Range $23-26 Stop Loss Price: $20.50 Sell Half Range: $34-35

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

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