12/6/07

Economics

A positive look at the economy from my favorite, Larry Kudlow:

http://kudlowsmoneypolitics.blogspot.com/2007/12/twenty-five-years-of-prosperity-and.html

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

http://www.clubforgrowth.org/2007/12/senate_passes_peru_trade_agree.php

An analysis of the methodology of the upcoming jobs report:

http://bigpicture.typepad.com/comments/2007/12/more-on-birthde.html

Politics

Domestic

International War Against Radical Islam

I think that there is some reason to be hopeful about the latest intelligence assessment on Iran’s nuclear program; but the operative word is ‘some’. Here is the WSJ opinion, in case you missed it:

http://www.opinionjournal.com/editorial/feature.html?id=110010946

And one more from conservative Fred Kaplan (must read):

http://www.slate.com/id/2179270/fr/flyout

More good news from Iraq the Model (also a must read):

http://pajamasmedia.com/2007/12/what_happens_after_the_surge.php

The Market

Technical

Fundamental

Subscriber Alert

I have reworked the Buy Value Range of Wells Fargo (WFC-$32) and its stock price is now within its Buy Value Range. Accordingly, WFC is being Added to the Dividend Growth Buy List. The Dividend Growth Portfolio will buy a one-half position in WFC at the Market open this morning.

VF Corp (VFC-$73) has been a long time holding in the Dividend Growth Portfolio. As early as 2004, VFC traded into its Sell Half Range and the Dividend Growth Portfolio acted accordingly. Fortunately, the stock continued to trade ever higher and the Dividend Growth Portfolio made some additional sales. Recently however, its stock traded down, fell within its Buy Value Range and was Added to the Dividend Growth Buy List. Having traded down from a high of $96 a share, the size of the VFC holding has become smaller than a normal 3% position. Today on the Market open, the Dividend Growth Portfolio buy sufficient shares (about 20%) to bring its holding in VFC back to a normal size.

LCA-Vision Inc (LCAV-$17) was initially Added to the Aggressive Growth Universe. It subsequently was added to the Aggressive Growth Buy List, purchased by the Aggressive Growth Portfolio, then Sold because its stock price hit its Stop Loss. The stock continued to decline. Recently, it appears to have halted that fall. While fundamentally, the company no longer qualifies for the Aggressive Growth Universe, it does qualify for the High Yield Universe. Accordingly, LCAV is being Added to the High Yield Universe and the High Yield Buy List. Today on the Market open, the High Yield Portfolio will buy a one-half position.

The stock price of Brinker Int’l (EAT-$21) has fallen below the lower boundary of its Buy Value Range. Therefore, EAT is being Removed from the Aggressive Growth Buy List. The Aggressive Growth Portfolio will continue to Hold this position.

On the Market open this morning, the Aggressive Growth Portfolio will Buy an additional one quarter position in Accenture Ltd (ACN-$34).

Aggressive Growth Buy List

Company Close 12/5 Buy Value Range

UnitedHealth Gp $53.02 $47-54

Expeditors Int’l 47.46 42-48

American Eagle OF 22.11 21-24

Landstar 42.80 38-43

Nordstrom 36.67 32-37

Reliance Steel 52.09 49-55

Fastenal 41.79 38-42

Harley Davidson 48.05 44-49

Rockwell Collins 73.69 65-75

Raven Ind 33.59 31-35

Accenture Ltd 34.59 34-39

News on Stocks in Our Portfolios

Alcon (Aggressive Growth Portfolio) announced a $1.1 billion stock buy back.

EPS: 2006 $4.35, 2007 $5.35, 2008 $5.90; DVD: $2.06 YLD 1.5%

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

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