4/29/08

Economics

A not very promising assessment from a housing insider:

http://bigpicture.typepad.com/comments/2008/04/kbh-home-prices.html

An updated look at credit spreads:

http://bespokeinvest.typepad.com/bespoke/2008/04/high-yield-spre.html

Inflation statistics:

http://mjperry.blogspot.com/2008/04/are-inflationary-concerns-inflated.html

Politics

Domestic

International War Against Radical Islam

From Iraq the Model:

http://pajamasmedia.com/blog/are-sadr-and-al-qaeda-teaming-up-in-iraq/

The Market

Technical

Fundamental

To date 55% of the S&P companies have reported first quarter earnings; ex financials, their profits are up 11%.

Taxes and stock prices:

http://www.usatoday.com/money/perfi/taxes/2008-04-27-tax-capital-gains-stocks_N.htm

Subscriber Alert

The stock price of Quaker Chemical (KWR-$32) continues to trade above its Sell Half Range. Yesterday, Alliance Resource Ptrs (ARLP-$42) traded into its Sell Half Range. Therefore, this morning at the Market open, the High Yield Portfolio will Sell sufficient shares of each holding to reduce it to its original size (2.5% of the value of the High Yield Portfolio).

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

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

Aggressive Growth Buy List

Company Close 4/28 Buy Value Range

Abercrombie & Fitch $75.43 $67-77

Ecolabs 46.75 43-49

FactSet Research 60.72 58-67

Graco Co 40.50 36-41

Mastercard 242.50 218-250

Medtronic 50.34 44-51

Microsoft 28.99 26-30

Rockwell Collins 64.06 61-70

SAP Inc 51.20 46-54

Staples 22.60 20-23

Company Highlight

FactSet Research (FDS) supplies financial and economic data to the global investment community through 200 databases with information on tens of thousands of companies, multiple stock markets and governments. The company earns a 25%+ return on equity and has grown earnings and dividends in excess 25% over the last five years. FDS should continue its above average performance as a result of:

(1) its portfolio analytics system is the industry leader; because of its extensive product development and strong client relationships, FDS has created a high barrier to entry and should, at a minimum, grow with the financial services industry,

(2) its ability to sell additional products to existing customers such as coverage of corporate bonds and fixed income derivative securities as well as products for investment banking, plan sponsors and corporate finance,

(3) expansion into the international securities markets,

(4) partnering with other financial services firms, such a Reuters, to further increase its product line,

(5) strategic acquisitions such as TrueCourse, a leading database provider of corporate takeover defense profiles, and Derivative Solution Inc, a supplier of portfolio management software for trading and investing in the bond markets.

FDS is rated B++ by Value Line, has no debt, recently approved a $125 million stock buy back and its stock yields about 1%.

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

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