Subscriber Alert

    At the Market open this morning, our Portfolios will spend another 1.25% in cash and add to the ishares Australian EFT (EWA) and the ishares Global Growth ETF (EFG).

    The stock price of Colgate Palmolive (CL-$86) has traded up within its Sell Half range.  Accordingly, the Dividend Growth Portfolio is selling shares sufficient to reduce the size of this holding to approximately 60% of normal.

    The stock price of Genuine Parts (GPC-$34) has traded below the upper boundary of its Buy Value Range.  Therefore, GPC is being Added to the High Yield and Dividend Growth Buy Lists.  Both portfolios own this stock although the size of each holding is below normal.  Nevertheless, no additional shares will be Bought at this time.

     Company Highlight

    Expeditors International (EXPD) is a third party logistics provider offering worldwide consolidation services for air and ocean freight as well as custom brokerage and import services.  The company runs 240 full service offices and 50 international service centers in more than 50 countries on six continents.  It  has an outstanding record of profit and dividend growth (20% and 35% respectively) over the past 10 years,  earning 16-20%+ return of equity. EXPD has suffered as expected in recent economic down turn; however, longer term it should continue to achieve economic success as a result of:

(1) the continued growth of the world economy in particular the strong trade between the US and Asia which should lead to strong gains in freight volume  in the future,

(2) the multinational diversification of supply chains, the need for technological innovation and trade regulations make it difficult for companies to handle their own shipping, increasing the importance of EXPD’s services,

(3) operating margins will improve as rates charged by carriers are declining,

(4) as a global leader, EXPD should increase its market share  in this highly fragmented industry,
   
(5) an aggressive cost cutting program.

EXPD is rated A by Value Line, has no debt and its sock yields 1.1%

Statistical Summary

                 Stock      Dividend         Payout      # Increases   
                Yield      Growth Rate     Ratio       Since 1999
 
EXPD        1.1%          15%             34%             10
*comparable industry data is not available  

                Debt/                    EPS Down       Net        Value Line
             Equity         ROE      Since 1999      Margin       Rating

EXPD        0%            16%            1                 11           A
*comparable industry data is not available

      Chart

Note:  EXPD has basically been in a trading range since March.  It has not made any challenge to the November 2008 trading high (green line) or the down trend off its July 2006 high (red line).  The straight blue lines are the boundaries of an up trend dating back to 1991.  The wiggly blue line is on balance volume.


 


http://finance.yahoo.com/q?s=EXPD
     11/09

    News on Stocks in Our Portfolios

    An update on Medivation (10 Bagger) from Zack’s:

Earlier this month, Medivation, Inc. (MDVN - Analyst Report) and Pfizer, Inc. (PFE - Analyst Report) initiated two phase III studies, CONTACT and CONSTELLATION, with Dimebon in patients with moderate-to-severe Alzheimer's disease (AD). Dimebon is being developed in collaboration with Pfizer  for the treatment of Alzheimer’s and Huntington diseases.

The CONTACT study will assess the potential benefits of adding Dimebon to ongoing treatment with Pfizer’s Aricept on neuropsychiatric symptoms and activities of daily living. Meanwhile, the CONSTELLATION study will evaluate the effects of adding Dimebon to Forest Lab’s (FRX - Analyst Report) Namenda, another standard of care, on cognition, memory and activities of daily living.

Preclinical studies indicate that Dimebon has the potential to protect brain cells from damage and enhance brain cell survival, by stabilizing and improving mitochondrial function. Dimebon’s mechanism is distinct from currently available Alzheimer’s medications.

Dimebon is currently in seven studies which are evaluating the safety and efficacy of the candidate across all stages of Alzheimer's disease, both as monotherapy as well as in combination with currently available Alzheimer's treatments, and in Huntington disease.

Dimebon’s unique mechanism of action and efficacy seen in clinical trials could make it a significant player in the worldwide Alzheimer’s market, which represents huge commercial potential. It is estimated that the market is currently worth about $5 billion.

Dimebon has successfully completed the first of two pivotal trials required to gain marketing approval in the U.S. for mild-to-moderate Alzheimer’s disease. A second confirmatory phase III study , CONNECTION, is currently ongoing. We expect to see top-line results from this study in the first half of 2010. Positive results should allow Medivation to go ahead with the filing of the new drug application (NDA) for the Alzheimer’s indication in 2011.

We currently have a Neutral recommendation on Medivation.

    A  positive write up on Suncor Energy (Aggressive Growth Portfolio):
    http://seekingalpha.com/article/174294-suncor-energy-positioned-to-benefit-from-worldwide-economic-growth

    A positive write up on WalMart (Dividend Growth Portfolio):
    http://seekingalpha.com/article/174202-wal-mart-is-crushing-the-competition