- Ugh, the averages finished on their lows. The S&P was off 3.3% to 845. The Dow, off 226, would of been worse had it not been for 3M.
- A lazy portfolio approach. Should you believe in the long term attractiveness of equity investing but are, so far, disenchanted with your stock picking prowess you might consider this approach. Three simple portfolios
- Gold is on fire. Technicians will tell you it has broken out of pennant formation. I should add it has broken out on the upside. Pennant formations can go either way. I bought GLD this morning. GLD is an ETF offering direct ownership of gold without exposure to operating leverage of a mining company. The average price for gold was $872 for ’08, up 25% over the average for ’07. No surprise, gold for jewelry use fell 12% last year. But, Value Line says: “Many investors believe we have entered a lengthy period when the value of real and financial assets may remain impaired.” That’s me!
- I would love to own some oil stocks. But demand for oil is unlikely to pick up for at least a year. The best company in the world is probably Exxon Mobil; it does almost everything well. However, recently it has been criticized for not adding significant resources to its exploration effort. This is being interpreted as the company’s conviction that resources should be retained as oil prices head south. Another I have been watching is BP. Its dividend of 7.7% is covered easily by earnings.
- Nancy Pelozi is working hard to become the most hated woman in DC. Evidently, the resounding no votes from Republicans on the stimulus is the result of Nancy not allowing any comment and/or counter ideas from the GOP. Obama is becoming the darling of both sides of the aisle as he courts all the right people. Perhaps Nancy should take notice.
- You would think we are better than this: Reporter Talks About Frozen Homeless Man
- I own Abbott Labs for its pipeline of new products, it acquisitive nature, its ability to integrate purchased companies, its dividend that has good growth and for conservative management. Another drug company I am considering is Schering Plough. I owned the preferred last winter and did well with it. I’d like to buy it back. The company’s sales growth is at a multi-year high; last quarter was +39% while sales were +63%. Products: Vytorin, Zetia, Clarinex, Provinteil, Dr. Scholls, Coppertone. They have 19 products in Phase 3 approval, 15 in Phase 2 and 9 in Phase 3. These include TRA for anti-clotting, Simponi for arthritis and Boceprevia for Hepatitis C. Each, if approved, have potential to be billion dollar drugs, according to Value Line. Importantly, SGP has little exposure to significant patent expiration. I will buy the preferred again; SGPprB, with a current yield of 8.3%.
- We should all be day trading Capitol One’s stock and options. Down 17% today after rising 14% yesterday.
- Got a little roughed up today. TBT, the inverse bond fund helped. It was up 5.5%.
- Curious packaging. Two displays of Kellogg Raisin Bran cereal on grocery shelf today; one was 20 ounces and cost $4.07, the other 25 ounces for $3.79.
- Watch the S&P; yesterday I was rejoicing that we broke through 850; well we did again, only down. We really don’t want to break 820.
Have a terrific, warm evening
