2/11/08

Economics

January ’08: the second coldest in 15 years:

http://wattsupwiththat.wordpress.com/2008/02/04/rss-satellite-data-for-jan08-2nd-coldest-january-for-the-planet-in-15-years/

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.) Where the candidates stand on earmarks:

http://seattletimes.nwsource.com/cgi-bin/PrintStory.pl?document_id=2004171198&zsection_id=2003956730&slug=earmarks08m&date=20080208

More on earmarks:

http://jewishworldreview.com/cols/will021008.php3

Politics

Domestic

McCain on government spending:

http://article.nationalreview.com/?q=YTdiOGU1MjY5YWEzZTQzZmYzNzlhOWQ3MTdkMWUzMTI=

International War Against Radical Islam

The US Afghan policy:

http://www.slate.com/id/2183944

Good news from Iraq:

http://www.captainsjournal.com/2008/02/10/al-qaeda-diary-catalogs-organizations-decline/

The Market

Technical

Fundamental

The Dividend Growth Buy List

Company Close 2/08 Buy Value Range

Abbott Labs $56.80 $51-58

Clorox 57.04 56-64

General Electric 33.84 35-39

Genuine Parts 44.53 41-47

Johnson & Johnson 62.03 60-69

McGraw Hill 40.66 40-46

Northern Trust 70.53 61-70

Proctor & Gamble 65.02 66-75

T. Rowe Price 49.73 47-54

UPS 70.58 67-77

United Technologies 71.35 48-55

VF Corp 79.74 72-83

Company Highlight

United Parcel Service (UPS) is the world’s largest integrated air and ground package delivery service, operating in over 200 countries. The company also offers specialized transportation and logistics services. UPS had grown its earnings and dividend in excess of a 15% pace since its founding; it has a 19-20% return on equity and a debt equity ratio of only 17%. The company should continue to grow at an above average pace as it:

(1) acquires complementary operations. In the last two years, UPS has acquired LYNX Express, UK’s largest independent parcel carrier, Overnite Corp, a leading US non-union provider of less-than-truckload, truckload and truckload services, Stolica a Polish parcel carrier and Menlo Worldwide Forwarding, a heavy airfreight service,

(2) expands its base in China. The company has just completed new warehouse and distribution facilities which now number 60, is investing in one of China’s largest parcel operations and continues of add to the number of weekly flights to China,

(3) grows its UPS Store franchise, now in over 5,000 locations worldwide.

UPS is rated A by Value Line, has a debt/equity ratio of 17%, is bought back 35 million last year while raising its dividend by 7%. Its stock currently yields about 2.5%.

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

News on Stocks in Our Portfolios

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

http://www.zacks.com/rank/zcommentary/?id=6921

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