Subscriber Alert

    As noted above, at the Market open this morning, our Portfolios will move to a 17.5% cash position.

    In the Dividend Growth Portfolio, a small portion of the following holdings will be Sold: Home Depot, VF Corp, Praxair, Automatic Data Processing, ConocoPhillips and the gold ETF.

    In the High Yield Portfolio, a small portion of the following holdings will be Sold: PennVirginia Ptrs, Leggett Platt, and the gold ETF.

    In the Aggressive Growth Portfolio, a small portion of the following holdings will be Sold: Bucyrus Int’l, Altera, CH Robinson, FactSet Research, Microsoft, Smith Int’l.  In the case of CH Robinson, its stock price has fallen below the lower boundary of its Buy Value Range and it is being Removed from the Aggressive Growth Buy List.

     Company Highlight    

Qualcomm Inc develops, markets and licenses cutting edge integrated circuits used primarily in wireless applications, provides data and positioning services for transportation applications, develops content management technologies and provides a platform for wireless application development.  QCOM has grown profits at a 20%+ annual rate over the last 10 years; and has raised its dividend per share from an initial $.09 in 2003 to $.67 in 2009.  It has done this while earning a 15%+ return on equity.  The company future appears equally promising as a result of:

(1) it recently settled litigation with Nokia, Broadcom and Sony-Ericsson which significantly strengthens QCOM future business plans,

(2) the strong worldwide demand for high end mobile devices which utilize QCOM’s technology, augmented by its successful diversification into new sectors such as mobile computing, mobile media and mobile banking,,

(3) improved outlook in rapidly expanding markets like China, India and Vietnam,

(4) several large wireless operators are upgrading their networks using QCOM  technology,

(5) QCOM’s next generation Snapdragon platform is gaining traction among leading smart phone and notebook developers.

The company is rated A by Value Line, has no debt but a huge $16 billion cash position and its stock yields 1.5%.
   
    Statistical Summary

                 Stock      Dividend         Payout      # Increases   
               Yield      Growth Rate     Ratio       Since 1999
 
QCOM       1.5%           9%              32%             6*
Ind Ave      1.1              3**               20              NA  

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

QCOM       0%            18%            4                31%           A
Ind Ave     12               11             NA               9              NA

*QCOM has paid a dividend for only 7 years
**most companies in QCOM industry do not pay a dividend

      Chart

Note: QCOM has traded out of its March to present up trend but remains above the down trend off its 2008 high and its November 2008 high.  The blue wiggly line is on balance volume.

 

http://finance.yahoo.com/q?s=QCOM
10/09

    News on Stocks in Our Portfolios

    ConocoPhillips (Dividend Growth and High Yield Portfolios) reported third quarter earnings per share of $1.00 versus expectations of $.94 and $3.39 reported in 2008’s third quarter.

    SAP (Aggressive Growth Portfolio) reported third quarter earnings per share of $.37 versus estimates of $.58 and $.35 recorded in last year’s third quarter.