The Disciplined Dividend Investor: 6/3/08

Economics

A look at the supply/demand statistics on oil:

http://www.american.com/archive/2008/june-06-08/a-simple-case-of-supply-and-demand

a rising tax and regulatory burden (Government has never proven that it could solve economic problems efficiently or satisfactorily.) More on cap and trade:

http://article.nationalreview.com/?q=NGNkNWFjNTYwYTM2Yzc2NjIxMjMwMzE3MjNhZjc4MTU=

And the Senate vote:

http://michellemalkin.com/2008/06/02/only-13-gop-senators-voted-against-the-lieberman-warner-green-boondoggle/

Some chart porn on housing:

http://bigpicture.typepad.com/comments/2008/06/consumer-mortga.html

And another sector of the economy about which to be concerned:

http://bigpicture.typepad.com/comments/2008/06/read-it-here-fi.html

A positive sign for the dollar:

http://mjperry.blogspot.com/2008/06/return-of-king-dollar.html

Despite the rising price of gasoline, the number of refineries in the US just keeps shrinking:

http://mjperry.blogspot.com/2008/06/no-new-oil-refineries-since-1976.html

Politics

Domestic

Scott McClellan’s book is headlines. Douglas Feith’s book doesn’t get a review. Here is Christopher Hitchens on both:

http://www.slate.com/id/2192696/

International War Against Radical Islam

The Market

Technical

Yesterday the DJIA (12504) traded below its August 2007 low (12511); while the S&P (1385) did not (1370). The last time stock prices were around this level, they bounced. I have no clue if that happens again; but if it does, the August 2007 support level will gain some strength. Frankly, my inclination is that prices will go lower. But that said, stock prices are down; our Discipline is to put money to work on Market declines; so I will nibble at stocks at the Market open.

Fundamental

Subscriber Alert

The stock price of Bank of Nova Scotia (BNS-$50) has risen above the upper boundary of its Buy Value Range. Accordingly, it is being Removed from the High Yield Buy List. The High Yield Portfolio will continue to Hold this stock.

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

The stock price of Rockwell Collins (COL-$60) has fallen below the lower boundary of its Buy Value Range. Therefore, it is being Removed from the Aggressive Growth Buy List. The Aggressive Growth Portfolio will continue to Hold COL.

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

At the Market open this morning, the High Yield Portfolio will Add slightly to its Holding of Martin Midstream (MMLP-$34) and Buy a one third position in Dow Chemical (DOW-$40); the Dividend Growth Portfolio will Buy a one third position in Canon (CAJ-$54); the Aggressive Growth Portfolio will add modestly to its positions in Ecolabs (ECL-$44) and SEI Investments (SEIC-$24)

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

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

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

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

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

The High Yield Buy List

Company Close 6/2 Buy Value Range

AJ Gallagher $25.25 $23-27

Dow Chemical 38.15 38-44

Kimco Realty Trust 38.15 39-45

Nustar Energy 49.08 47-54

Rayonier 48.52 42-48