4/22/08

Economics

Politics

Domestic

An interview with Phil Gramm, McCain’s economic advisor:

http://www.usnews.com/blogs/capital-commerce/2008/4/18/gramm-speaks-the-views-of-our-next-maybe-treasury-secretary.html#read_more

W’s disastrous energy (ethanol) policy:

http://www.american.com/archive/2008/april-04-08/the-case-for-ending-ethanol-subsidies

Hillary on Iran:

http://www.dickmorris.com/blog/2008/04/21/nuts-on-nukes-hillarys-mad-new-policy/

International War Against Radical Islam

The Market

Technical

Fundamental

Subscriber Alert

The stock price of Buckeye Pipeline Ptrs (BPL-$49) has re-entered its Buy Value Range. Accordingly, it is be Added to the High Yield Buy List. Since the High Yield Portfolio already owns BPL, no additional shares will be purchased.

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

The stock price of FactSet Research System Inc (FDS-$59) has re-entered its Buy Value Range. Therefore, it is being Added to the Aggressive Growth Portfolio. Since the Aggressive Growth Portfolio already owns FDS, no additional shares will be purchased.

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

In addition, at the Market open this morning, the High Yield Portfolio will purchase an additional 100 shares of Altria (MO-$22), the Dividend Growth Portfolio will purchase 100 shares each of T Rowe Price (TROW-$54) and Ingersoll Rand (IR-$46) and the Aggressive Growth Portfolio will purchase 200 additional shares of SEI Investments (SEIC-$25)

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

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

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

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

The High Yield Buy List

Company Close 4/21 Buy Value Range

AJ Gallagher $24.02 $23-26

Altria 22.16 22-25

Buckeye Pipeline Ptrs 49.68 49-56

Rayonier 45.20 39-45

Realty Income Trust 26.94 25-29

Worthington Ind 17.54 16-18

Company Highlight

Worthington Industries manufacturers flat rolled steel, metal framing and pressure cylinders. The company has grown profits and dividends 4-6% over the last 10 years earning a 10-12% return on equity. 2007 was a rough year due to the problems in the construction and automobile industries; however, those difficulties appear well reflected in the price of WOR’s stock. Looking forward, earnings should recover as a result of:

(1) a recovery in the economics of its end markets,

(2) a corporate wide cost reduction program,

(3) improvement in its current joint venture programs as well as expansion of their number,

(4) market penetration in less developed countries,

(5) increased market share resulting from the demise of less well financed competitors.

WOR is rated B++ by Value Line, has a very conservative (for a steel company) debt to equity ratio of 22% and its stock yields over 4%.

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

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Another look at S&P earnings reports:

http://bespokeinvest.typepad.com/bespoke/2008/04/earnings-beat-r.html

Charts on international long bond rates:

http://bespokeinvest.typepad.com/bespoke/2008/04/international-l.html

News on Stocks in Our Portfolios

A positive write up on Bucyrus Int’l (Aggressive Growth Portfolio):

http://www.zacks.com/rank/zcommentary/?id=7443

Avery Dennison (Dividend Growth Portfolio) reported first quarter operating earnings per share of $.80 versus $.82 recorded in the similar 2007 period.

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

Peabody Energy (Aggressive Growth Portfolio): reported first quarter earnings per share of $.21 versus expectations of $.15 and $.33 reported in the 2007 first quarter.

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

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

http://www.bloggingstocks.com/2008/04/21/getting-ahead-of-the-pack-with-staples/

More Cash in Investors’ Hands