Continue reading Band-Aid Economics -- J&J Loving It

Band-Aid Economics -- J&J Loving It originally appeared on BloggingStocks on Mon, 10 May 2010 14:00:00 EST. Please see our terms for use of feeds.

Continue reading Oil Closes Above $80

Oil Closes Above $80 originally appeared on BloggingStocks on Wed, 03 Mar 2010 17:30:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: Ten stocks for 2010 -- Part 10

Chasing Value: Ten stocks for 2010 -- Part 10 originally appeared on BloggingStocks on Mon, 14 Dec 2009 14:00:00 EST. Please see our terms for use of feeds.

One of my wonderful friends, Ms. P, asked me for some guidance on how she might allocate $50,000 currently earning peanuts in a money market account. Though she is decades from becoming a grandmother, after a brief discussion about her financial parameters, it became clear to me that she was looking for a "granny fund."

In reality, my recommendations would be suitable, and perhaps desirable, for many passive investors as well.

The $50,000 is a portion of money Ms. P has set aside to purchase a home, which might happen in six months, but could also be pushed out further, depending on the economy and her situation. Basically, she wants to cover all her bases because she might need the money at any time and does not want to be caught short, while at the same time she would like to generate some revenue without taking any big risks.

Continue reading Where should granny put $50,000?

Where should granny put $50,000? originally appeared on BloggingStocks on Fri, 09 Oct 2009 15:40:00 EST. Please see our terms for use of feeds.

Continue reading Serious Money: Five more high yield, safe, diversified stocks -- Part 2

Serious Money: Five more high yield, safe, diversified stocks -- Part 2 originally appeared on BloggingStocks on Tue, 14 Jul 2009 13:00:00 EST. Please see our terms for use of feeds.

"Any further market weakness creates creates another opportunity to acquire some outstanding stocks," suggests Kelley Wright, noted for his focus on blue chip, dividend-paying stocks.

In his Investment Quality Trends newsletter, he looks at the benefits of keeping a long-term focus, the value of dividend districutions to an investor's long-term returns, and his current "timely ten" picks for conservative investor.

"The cash dividend for the Dow is $322.40. One year ago the dividend was $284.06. Amidst all the turmoil in the markets and the economy something must be going right with the Dow 30 companies because the dividend is ever climbing.

"Dividends, as we all know, can only come from the reality of earnings; you can't pay what you don't have. The dividend yield on the Dow is currently 2.66%, which represents an 11% downside to a 3.0% yield and the historically repetitive area of Undervalue.

"Will the Average make it down to that level? No one knows but that isn't the point. At current levels the upside is FAR greater, particularly in many of the stocks in our Undervalued area.

Continue reading For blue chip buyers: 'This too shall pass'

For blue chip buyers: 'This too shall pass' originally appeared on BloggingStocks on Fri, 25 Jul 2008 11:30:00 EST. Please see our terms for use of feeds.

"As far as safety goes, Automatic Data Processing (NYSE: ADP) is hard to beat," says Gregory Dorsey in Leeb's Income Performance Report. Here's the advisor's review.

"In our search for stocks that can not only grow in good times, but will also hold up well when the going gets rough, we find ADP. Its steady cash generation means the company has a number of options at its disposal when it comes to maximizing shareholder value.

"ADP offers services including payroll processing, human resource benefits administration products and other outsourcing services. The stock's P/E, using expected year-ahead earnings, doesn't seem so cheap at 18. But relative to the company's long-term growth rate, it's quite reasonable. In fact, the stock is trading at its lowest valuations in more than a decade.

"And ADP's balance sheet has never been stronger. Management's confidence in the company's future recently prompted them to up the stock's payout by 26%. We see good things ahead for ADP as well.

"ADP has demonstrated a record of maximizing shareholder value. For instance, the company has a history of using part of its cash flow generation to repurchase its own stock. In the first quarter the company repurchased approximately 5.8 million shares, and it's likely to continue to buy back shares in the future."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

Automated gains from ADP originally appeared on BloggingStocks on Wed, 16 Jul 2008 10:47:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Lehman upgraded the small-cap bank sector to Neutral from Negative as they expect the group to benefit from the decline in short-term interest rates and the steeping yield curve. The firm upgraded Associated Banc-Corp (NASDAQ: ASBC), Pacific Capital Bancorp (NASDAQ: PCBC) and Westpac Banking Corp (NYSE: WBK) to Equal Weight from Underweight.
  
• Friedman Billings added Waste Connections (NYSE: WCN) to its Top Picks list. The firm believes the company can outperform the group and overall market in an economic downturn.
  
• Warnaco Group (NASDAQ: WRNC) was upgraded to Overweight from Neutral at JP Morgan on valuation and growth potential.
  
• JMP Securities' checks indicate that Intersections (NASDAQ: INTX) is on track to meet EPS expectations for the quarter and is well positioned to beat their 2008 EPS estimate of 80c. The firm raised shares to Strong Buy from Outperform.

• Best Buy Incorporated (NYSE: BBY) and AutoZone (NYSE: AZO) were upgraded to Strong Buy from Outperform at Raymond James.
  
• The firm also upgraded shares of CBRL Group (NASDAQ: CBRL) to Market Perform from Outperform.
  
• JP Morgan upgraded Ruby Tuesday (NYSE: RT) and Plexus Corp (NASDAQ: PLXS) to Overweight from Neutral.
  
• Bear Stearns raised MFA Mortgage Investments (NYSE: MFA) to Outperform from Peer Perform.
  
• Goldman added Automatic Data Processing (NYSE: ADP) to its Conviction Buy List.

Analyst upgrades: Small-cap banks, WCN, WRNC and INTX originally appeared on BloggingStocks on Wed, 19 Sep 2007 10:50:00 EST. Please see our terms for use of feeds.

Numbers are Actual vs. Estimate

• InterActiveCorp (NASDAQ: IACI) 67c vs. 53c
• Retailing revenue increased to offset a lower price point average, and a higher average return rate. International revenue increased slightly, but profits were hurt by higher operating expenses. Ticketing volume increased as ticket sales rose 4% on 7% higher overall revenue per ticket.
  

• National-OilWell Varco Inc (NYSE: NOV) $1.35 vs. $1.06
• High energy prices stirred demand for drilling equipment which created a backlog of capital equipment orders for the Rig Technology segment.
  

• Electronic Data Systems Corporation (NYSE: EDS) 47c vs. 36c
• "On balance," said chairman and CEO Mike Jordan, "This was the strongest quarter... since I joined the company in 2003." Performance was driven by $7.6B in fourth quarter contracts, up 43% from the previous year.

Continue reading High (and low) lights from this week's earnings releases

High (and low) lights from this week's earnings releases originally appeared on BloggingStocks on Fri, 09 Feb 2007 15:03:00 EST. Please see our terms for use of feeds.