Generally, an investment strategy that focuses the total average annual return on equity over longer time periods tends to avoid an evaluation of companies that are about to or that have recently reported quarterly earnings. But there are exceptions, and International Paper (NYSE: IP) is one.

International Paper Friday reported unspectacular Q3 EPS of 57 cents compared to the Reuters consensus estimate of 57 cents. IP also reported Q3 revenue of $5.54 billion versus the Reuters consensus estimate of $5.36 billion. In other words, IP's performance barely met the Wall Street's expectations, and the Street was not overjoyed, with IP's shares declining 68 cents to $35.39 in Friday afternoon trading.

Still, the IP investment thesis remains largely intact. A restructuring has re-aligned its product mix and cut costs, while balance sheet improvements mean the company can more-quickly make investments in faster-growth regions. Further, while domestic free sheet (used in copiers, envelopes, forms) and linerboard (used in corrugated boxes) demand is expected to remain soft in 2008, international demand should grow at an acceptable rate.

With the markets in a choppy/consolidation mode (or perhaps worse), it's best to consider including a few defensive stocks in your portfolio. Deere and Co. (NYSE: DE) is worth an evaluation.

Deere is well-positioned to take advantage of several long-term, secular trends. Chief among these are: strong international agricultural and international construction/building markets, and an expanding consumer equipment sales segment.

Solid, enduring growth in international agricultural markets is the standout fundamental here, with the business line's revenue growth expected to offset slumps in equipment sales for the correcting U.S. housing market. Other positives: DE's costs remain under control, its balance is strong, and agriculture equipment market conditions suggest the company has modest pricing power. Increased use of renewable fuels are likely to add to demand for DE's equipment, assuming at least one renewable fuel gains traction as a practical, affordable alternative to petroleum-based energy.

It is without a doubt that Limited Brands (NYSE:LTD) is having an outstanding year. Year to date operating income has approximately doubled over last year and same store sales were showing a 7% increase just prior to November. I'm expecting that year end figures will be right on track with the previous three quarters.

What brought Limited Brands to my attention was their announcement of a new initiative to support the movement to protect endangered forests. It's only right that corporate America shows the government they can do the right thing without it being legislated against them. I live in a region of "working" forests. I have seen responsible forestry practices in action. I've watched as Michigan, Minnesota and Wisconsin implemented far-reaching and effective sustainable forestry practices. We love our trees, we work them and we protect them. Just last summer there was selected harvesting of mature trees right across the road from my home. I don't know how many thousands of dollars in revenue and income was generated by the project but I'll tell you what, if you stand at the end of my driveway, you can't even tell they were in there.

This announcement by Limited Brands should please environmentalists and the forest products industry alike. Limited Brands has pledged to maintain a high level of post-consumer material in their publications and has vowed to work with their suppliers to find workable options for acquiring the virgin material which quality paper production requires. Based on my experience in the field I think they and their suppliers shall find no shortage of viable options. I think this situation should serve to highlight the movement by corporate America towards environmental sustainability. The more we approve the right moves by our manufacturers, the more they will choose to make those right moves. My thanks to Limited Brands for exhibiting this high level of eco-responsibility.

Oh, and please keep the Victoria's Secret catalogs coming, my wife loves them.