3/3/08

Economics

A solution for stagflation (if you think that that is the problem):

http://blogs.forbes.com/digitalrules/2008/02/stagflations-su.html

A look at real disposable income:

http://mjperry.blogspot.com/2008/02/25th-month-of-real-disposable-income.html

And how W’s tax cuts impacted both high and low income households:

http://krusekronicle.typepad.com/kruse_kronicle/2008/02/taxing-question.html

Politics

Domestic

Obama on free trade:

http://www.usnews.com/blogs/capital-commerce/2008/02/29/trade-wars-obama-vs--obama.html

McCain on pork:

http://americansforprosperity.org/index.php?page=blog

If you happened to see the 60 Minutes report on the Republican conspiracy to imprison the former Democratic governor of Alabama, and you care, here is an analysis of the testimony of the leading witness in 60 Minutes story. This is a bit long, has nothing to do the economy or the Market, but is another remarkable example of how untrustworthy the main stream media has become.

http://www.powerlineblog.com/archives2/2008/03/019926.php

International War Against Radical Islam

This probably won’t be good for stocks:

http://hughhewitt.townhall.com/blog/g/a08a8dc4-a8ec-4564-8f20-4482b75f1e40

The Market

Technical

The Market performance after three down months in a row:

http://bespokeinvest.typepad.com/bespoke/2008/02/down-four-month.html

Fundamental

Aggressive Growth Buy List

Company Close 2/29 Buy Value Range

Accenture Ltd $35.25 $32-36

Amphenol 36.97 35-40

Best Buy 43.01 42-48

Fastenal Inc 40.66 36-41

Microsoft 27.19 26-30

SAP Inc 47.41 46-54

Sun Hydraulics 21.73 21-25

Subscriber Alert

The stock price of American Eagle Outfitters (AEO-$22) has fallen below the lower boundary of its Buy Value Range. Accordingly, it is being Removed from the Aggressive Growth Buy List. AEO’s price remains well above its Stop Loss Price; so for the moment, the Aggressive Growth Portfolio will continue to Hold this stock.

Company Highlight

Smith International produces drill bits; markets pipes, valves and fittings; supplies drilling-fluid systems, solids control and rig instrumentation equipment and waste management services; and provides equipment and services for well drilling, work over and completion. The company has grown profits at a 25% pace over the last 5 years, earning over a 20% return on equity utilizing little debt (14%). SII should continue its above average earnings performance as a result of:

(1) worldwide hydrocarbon demand along with rising prices continues spurring growth in exploration,

(2) SSI’s international exposure: non US exploration is growing at an even higher rate than domestic exploration,

(3) strong demand provides the company with pricing power allowing it to more than offset the increased cost of raw materials,

(4) the company maintains a very successful product development effort making it a leader in technological innovation,

(5) SSI also has an aggressive acquisition program which concentrates on proven products from niche industry players.

In addition, management is focused on returning capital to shareholders via the rapid growth of its dividend as well as an active share buyback program. SSI is rated B++ by Value Line, has a 29% debt to equity ratio and its stock yields about 1%.

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

News on Stocks in Our Portfolios

United Technologies (Dividend Growth Portfolio) has proposed acquiring Diebold for $40 a share in cash.

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

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