Monday, January 7, 2008

1/7/08

Economics

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.).

W’s Constitutional basis for eliminating earmarks:

http://article.nationalreview.com/?q=NWU5MGM4MTZlNmQ5MmU4MzQxYmE3NjU3MDA3MDg1NzM=

And a follow up to that from John Fund:

http://www.opinionjournal.com/diary/

protectionism (Free trade is a major positive for world and US economic growth.). A look at the pending trade pact with Columbia and the consequences of not ratifying it:

http://www.ibdeditorial.com/IBDArticles.aspx?id=284256520715956

On the likelihood of recession and the causes thereof:

http://article.nationalreview.com/?q=NzM3NWI5ZGRjOTk1ZGY1ODY2YmZhYmRlZDk2MWE0NTI=

Politics

Domestic

McCain on immigration:

http://www.slate.com/id/2181118/#grufftesty

International War Against Radical Islam

The Market

Technical

Fundamental

Aggressive Growth Buy List

Company Close 1/4 Buy Value Range

SAP Inc $49.52 $46-54

Company Highlight

SAP Inc develops, markets, sells and supports enterprise application software products for corporations, government agencies and educational institutions. The company has earned a 25%+ return on equity over the last 5 years while growing profits and dividends over 20% annually. Consistent growth should continue though at a more moderate pace as a result of:

(1) SAP targeting small and medium sized businesses which grow at a faster pace than larger companies,

(2) collaborating with industry giants like IBM, Hewlett Packard and Dell to expand its offerings to small and medium sized businesses,

(3) continuing to add and integrate new products to its platform software,

(4) expanding its marketing efforts into the Asia/Pacific region,

(5) an ongoing cost reduction program.

The company is rated A by Value Line and its stock provides a 1.1% yield.

News on Stocks in Our Portfolios

A positive write up on Amphenol (Aggressive Growth Portfolio):

http://www.zacks.com/blog/post_detail.html?t=10983

More Cash in Investors’ Hands

No comments: