10/17/07

Economics

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

http://www.latinbusinesschronicle.com/app/article.aspx?id=1704

Politics

Domestic

International War Against Radical Islam

The Market

Technical

Fundamental

News on Stocks in Our Portfolios

Linear Technology (Dividend Growth Portfolio) reported its first fiscal quarter earnings per share of $.40 versus expectations of $.38 and $.33 in the comparable 2007 fiscal quarter.

EPS: 2006 $1.37, 2007 $1.39, 2008 $1.75; DVD: $.66 YLD 2.0%

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

Yesterday Indian (as in India) regulators began restricting foreign trading in Indian stocks which led to a 5% sell off in Infosys Technologies (Aggressive Growth Portfolio). This is one of those negative exogenous events over which the company has no control but which can dramatically impact that company’s stock. Further, it is the worse kind of exogenous event which is to say it is a move toward rank protectionism by one of the fastest growing economies in the world and as such is discouraging news for all economies and companies, not just Infosys. News reports out of India this morning suggest that regulators could reverse themselves quickly. At the moment, I am trying to get more information before making an investment decision. In the meantime, INFY is being Removed from the Aggressive Growth Buy List. The Aggressive Growth Portfolio continues to Hold this stock--but the fuse is very short.

EPS: 2006 $1.50, 2007 $1.92, 2008 $2.35; DVD: $.55 YLD 1.1%

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

Yesterday the stock price of Fifth Third Bancorp fell below the lower boundary of its Buy Value Range and closed near its Stop Loss Price. I stated in yesterday’s blog that it may have been premature to have begun averaging into the financial stocks. While I am not yet convinced that it was an incorrect action; I do believe that we are at a time when discretion is the better part of valor--meaning that we are in a Market in which our first and most important task is to protect our portfolios’ asset value. Accordingly, FITB is being Removed from the Aggressive Growth Buy List and is being Sold at the open this morning by the Aggressive Growth Portfolio.

EPS: 2006 $2.12, 2007 $2.70, 2008 $2.90; DVD: $1.70 YLD 5.0%

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

Abbott Labs (Dividend Growth Portfolio) reported third quarter operating earnings per share of $.67 versus expectations of $.66 and $.58 reported in the comparable 2006 quarter. Revenues were strong and the company raised 2007 full year earnings per share guidance slightly.

EPS: 2006 $2.52, 2007 $2.82, 2008 $3.25; DVD: $1.30 YLD 2.5%

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

Coca Cola (Dividend Growth Portfolio) reported third quarter earnings per share of $.71 versus expectations of $.68 and $.62 reported in the comparable 2006 quarter. Revenues were very strong with unit growth worldwide up 6%

EPS: 2006 $2.37, 2007 $2.65, 2008 $2.95; DVD: $1.36 YLD 2.6%

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

Altria (Dividend Growth Portfolio) reported third quarter earnings per share of $1.21 versus expectations of $1.14 and $1.07 reported in the comparable 2006 quarter. The company raised 2007 full year earnings per share guidance by $.15.

EPS: 2006 $5.70*, 2007 $4.10, 2008 $4.50; DVD: $2.75 YLD 4.1%

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

*includes Kraft

Illinois Tool Works (Dividend Growth Portfolio) reported third quarter earnings per share of $.89 versus $.78 reported in the comparable 2006 quarter.

EPS: 2006 $3.01, 2007 $3.40, 2008 $3.75; DVD: $.91 YLD 2.0%

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

Amphenol (Aggressive Growth Portfolio) reported third quarter earnings per share of $.50 versus $.36 reported in the comparable 2006 quarter..

EPS: 2006 1.47, 2007 $1.83, 2008 $2.05; DVD: $.06 YLD .2%

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

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