3/6/08

Economics

On the weak dollar:

http://online.wsj.com/article/SB120468065700512153.html?mod=opinion_main_commentaries

The productivity number yesterday looked decent:

http://mjperry.blogspot.com/2008/03/us-productivity-rises-19-in-qiv-2007.html

Politics

W’s complete and utter failure to secure the border:

http://www.townhall.com/Columnists/TonyBlankley/2008/03/05/border_insecurity

McCain on Social Security:

http://www.clubforgrowth.org/2008/03/mccain_is_right_on_social_secu.php

Domestic

The sorry state of our government’s effort to secure this country’s borders:

http://demint.senate.gov/public/index.cfm?FuseAction=PressReleases.Detail&PressRelease_id=7fca007e-a0a7-774d-e1da-5b277d70960a

International War Against Radical Islam

The ACLU versus the Ma Bell:

http://article.nationalreview.com/?q=YzQ1N2IwZDk2NDAyOTY5ZTE1MzhmNGZlNjQ0OTg2NTQ=

The Market

Technical

There are some optimists in our midst:

http://www.thestreet.com/p/_htmlrmd/rmoney/technicalanalysis/10406350.html

Fundamental

The rumored re-cap of Ambac announced yesterday was DOA--most of the ‘experts’ interviewed by the financial press had nothing but bad things to say about it; and yet stocks were up. Does this mean that all the bad news regarding the monoline insurers problems are now fully discounted? Given the constant stream of negative sentiment expressed in the media that prospect seems impossible. But it will be interesting to see how the Market reacts to the next piece of ill tidings from monolines.

Subscriber Alert

The stock prices of Genuine Parts (GPC-$41) and Abbott Labs (ABT-$53) have fallen below the lower boundary of their Buy Value Range. Accordingly, GPC and ABT are being Removed from the Dividend Growth Buy List. Since the Dividend Growth Portfolio never purchased GPC no action is required. IN the case of ABT, its stock price remains well above its Stop Loss Price; so for the time being the Dividend Growth Portfolio will continue to Hold this stock.

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

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

The stock price of Ecolabs Inc. (ECL-$46) has fallen below the upper boundary of its Buy Value Range. Therefore, ECL is being Added to the Aggressive Growth Buy List. Since the Aggressive Growth Portfolio already owns this stock, no additional share will be bought.

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

The High Yield Buy List

Company Close 3/5 Buy Value Range

AJ Gallagher $23.76 $23-26

Martin Midstream Ptrs 34.69 32-37

Rayonier 43.05 39-45

Reynolds American 63.95 61-70

Pfizer 22.04 21-24

Company Highlight

Magellan Midstream Partners is a master limited partnership that is involved with the transportation, storage and distribution of refined petroleum products in the US. Since its founding in 2001, the partnership has grown earnings from $.95 a share to $2.24 in 2006 and dividends from $1.01 in 2001 to $2.34 in 2006. While these growth rates will slow, they nevertheless should continue because:

(1) Magellan portfolio of assets generates stable and recurring fee and tariff bases revenue,

(2) given MMP’s comfortable distribution coverage ratio and the prospects from its new assets,

(3) the history and reputation of its general partners [Madison Dearborn Partners & Carlyle/Riverstone] suggest an aggressive acquisition program,

(4) the attractive potential of MMP’s expansion projects.

The partnership is rated B+ by Value Line, has a debt/equity ratio of approximately 50% and yields 5.9%.

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

News on Stocks in Our Portfolios

Quaker Chemical (High Yield Portfolio) raised its quarterly dividend per share from $.215 to $.24.

More Cash in Investors’ Hands