12/4/07

Economics

A positive look at the US dollar (for a change):

http://www.thestreet.com/p/rmoney/currencies/10392625.html

Politics

Domestic

International War Against Radical Islam

A critical look at the intelligence community’s report on Iranian nukes:

http://article.nationalreview.com/?q=NjljZGNiZTc0NzhmM2UyYmFlMWQ4NjkwYWI5MzUxNTM=

The Market

Technical

Fundamental

Subscriber Alert

The stock price of ParkerVision (PRKR-$8.50) has fallen into its Buy Value Range. Accordingly, it is being Added to the 10 Bagger Buy List. The Aggressive Growth Portfolio already owns Parker, so no additional shares will be purchased.

The Aggressive Growth Portfolio will Buy additional shares (about 20% of a position) of US Global Investors Fund-Gold Shares (USERX-$18) at the Market open this morning.

The Dividend Growth Buy List

Company Close 12/3 Buy Value Range

Johnson & Johnson $67.71 $60-69

Abbott Labs 57.01 51-59

Illinois Tool Works 54.47 53-61

MDU Resources 27.11 25-29

Canon 52.11 47-54

3M 82.21 78-85

Eli Lilly 52.53 49-53

Graco 36.98 37-41

Commerce Bancshares 45.00 43-48

Paychex 39.30 38-42

Sysco 32.37 30-33

Chevron 88.84 79-91

Linear Technology 30.73 29-32

Marathon Oil 56.78 56-62

Automatic Data Processing 45.23 44-49

American Int’l Group 56.90 57-63

VF Corp 74.24 72-79

General Electric 36.93 35-39

Another stock on the Dividend Growth Buy List that fits the consumer staple, consistent growth theme is Abbott Labs. This company develops, manufactures and markets a diversified line of healthcare products including pharmaceuticals, diagnostic systems and tests and pediatric nutritional products. ABT has grown profits and dividends between 8-10% over the last 10 years earning in excess of a 25% return on equity. Expectations are for an even better performance over the next five years making it one of the fastest growing major US pharmaceutical/medical device companies. The primary components of future growth are:

(1) strong revenue increases from several major drugs including Humeria, an anti-inflammatory whose sales are growing in excess of 40% a year, Kaletra, a protease inhibitor [HIV], Tricor, a cholesterol lowering drug and Depakote, an anti-seizure medication,

(2) an aggressive acquisition program that has recently added Guidant, a leading producer of drug-eluding stents, as well as Spinal Concepts, Medisense, Therasense and Kos Pharmaceuticals, a specialty drug company that develops and markets proprietary medications for the treatment of chronic cardiovascular, metabolic and respiratory diseases,

(3) a committed R&D program with several high potential drugs for the treatment of cancer, autoimmune diseases and cholesterol as well as new products serving the diagnostics and stent divisions.

Abbott Labs is rated A++ by Value Line, its stock provides a 2.4% yield and is considerably less volatile than the Market Averages.

EPS: 2006 $2.52, 2007 $2.83, 2008 $3.20; DVD: $1.30 YLD 2.4%

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

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