4/4/08

Economics

More clarity on the resolution of the credit crisis:

http://bespokeinvest.typepad.com/bespoke/2008/04/merrills-thain.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.). A step in the right direction on earmarks:

http://www.clubforgrowth.org/2008/04/good_but_not_good_enough.php

On the other hand:

http://www.clubforgrowth.org/2008/04/pork_power_to_the_people.php

A complete review of this budget year’s earmarks:

http://mjperry.blogspot.com/2008/04/big-pork-11610-projects-worth-172.html

Politics

Obama on the Columbia trade agreement:

http://blogs.wsj.com/washwire/2008/04/02/obama-vows-opposition-to-colombia-trade-deal/?mod=WSJBlog

Domestic

Obama on abortion:

http://hughhewitt.townhall.com/blog/g/37cfeb45-7888-4de8-9c4d-302ed9c495fb

International War Against Radical Islam

The Market

Technical

Current stock valuation versus foreign markets:

http://bespokeinvest.typepad.com/bespoke/2008/04/global-pe-ratio.html

Fundamental

Subscriber Alert

The stock prices of T Rowe Price (TROW-$55), Brown Forman (BFA-$70) and Ingersoll Rand (IR-$43) have entered their Buy Value Range. Accordingly, they are being Added to the Dividend Growth Buy List. The Dividend Growth Portfolio already own TROW and BFA; however, additional shares may be Bought on any Market decline. The Dividend Growth Portfolio does not own Ingersoll Rand and will not purchase any of its shares at this time.

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

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

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

The stock price of Emerson Electric (EMR-$53) has risen above the upper boundary of its Buy Value Range. Accordingly, it is being Removed from the Dividend Growth Buy List. The Dividend Growth Portfolio will continue to Hold this stock.

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

The stock prices of Penn Virginia Ptrs (PVR-$26) and RPM Int’l (RPM-$23) have risen above the upper boundary of their respective Buy Value Range. Therefore, they are being Removed from the High Yield Buy List. The High Yield Portfolio will continue to Hold these stocks.

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

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

The stock price of Graco Inc (GGG-$38) has entered its Buy Value Range. Therefore, it is being Added to the Aggressive Growth Buy List. The Aggressive Growth Portfolio will not purchase any shares of GGG at this time.

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

The High Yield Buy List

Company Close 4/3 Buy Value Range

AJ Gallagher $25.00 $23-26

BP Ltd 62.50 59-68

Rayonier 45.66 41-47

Realty Income Trust 26.13 25-29

Reynolds American 60.00 60-69

Company Highlight

BP is one of the world’s largest integrated oil companies. With the current price of oil where it is, almost every company in the oil industry is enjoying prosperity. However, on a longer term basis, BP is managing its business for improved profitability whatever the price of oil. First, its exploration program will insure net annual additions to its reserves through the end of the decade. Second, the company is divesting its lower margin businesses. Return on equity has fluctuated between 15-22%; while debt to equity is only 14%. Earnings grew at an average annual rate of 11% over the last decade and we expect that trend to continue. While the company has raised its dividend annually, its growth rate lagged that of its earnings. We believe that the payout will improve.

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

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