Subscriber Alert

    The stock price of Verizon (VZ-$29) has fallen below the lower boundary of its Buy Value Range.  Accordingly, VZ is being Removed from the High Yield Buy List.  The High Yield Portfolio will continue to Hold this stock.

    The stock price of Expeditors Int’l (EXPD-$31) has fallen below the lower boundary of its Buy Value Range.  Therefore, it is being Removed from the Aggressive Growth Buy List.  The Aggressive Growth Portfolio never purchased this stock; hence no further action is required.

    The stock price of Amphenol (APH-$41) has risen above the upper boundary of its Buy Value Range.  Accordingly, it is being Removed from the Aggressive Growth Buy List.  The Aggressive Growth Portfolio will continue to Hold APH.

       Company Highlight

    Fastenal sells industrial and construction supplies (threaded fasteners, tools and equipment, cutting tools and abrasives, components and accessories for hydraulics, pneumatics, plumbing and HVAC, material handling products and janitorial, welding, safety and electrical supplies) through both wholesale and retail channels in the US, Singapore, Canada, Mexico, China, the Netherlands and Puerto Rico.  The company has grown its profits and dividends rapidly over the last 10 years (19% and 60% respectively) while earning a 15%+ return on equity.  FAST has suffered along with most other companies during the current economic downturn; however longer term, the company should continue to produce excellent results as a result of:

(1)    the company has done an exceptional job retaining its existing customers which should produce significant operating leverage as those customers increase spending in an improving economy,

(2)    the company has no debt and a strong cash position which will allow it to quickly ramp up the number of store openings as the economy strengthens—store openings being an important component in FAST’s growth.

FAST is rated A+ by Value Line, has no debt and its stock yields 1.9%.

      Statistical Summary

                 Stock      Dividend         Payout      # Increases   
               Yield      Growth Rate     Ratio       Since 1999
 
FAST         1.9%         10%              58%             9
Ind Ave      2.6             5                  34              NA  

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

FAST         0%             16%           2                10%          A+
Ind Ave     23               10             NA               4             NA

      Chart

Note: FAST trades within its up trend off the March lows and has successfully challenged the down trend off its September 2008 high (red line).  However, it has been unable to surmount the November 2008 high resistance level (green line).  The blue line is the lower boundary of a long term up trend dating from 2000.


 

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

    News on Stocks in Our Portfolios

    The following companies reported third quarter earnings per share yesterday:

    Automatic Data Processing (Dividend Growth Portfolio): $.56 versus $.50 expected.

    Murphy Oil (Dividend Growth Portfolio): $.98 versus $.97 expected

    XTO Energy (Dividend Growth and Aggressive Growth Portfolios): $.87 versus $.84 expected

    Zacks’s on T Rowe Price (Dividend Growth and High Yield Portfolios):

T. Rowe Price Group, Inc. (TROW - Snapshot Report) saw a nice spike after announcing third-quarter results. Earnings per share of 50 cents were below last year’s 56 cents but topped the Zacks Consensus Estimate by 9%. The company also reported a 16% increase in assets under management, totaling $366.2 billion.

Company Description

T. Rowe Price Group, Inc. is a global investment management organization that provides a broad array of mutual funds, subadvisory services and separate account management for individual and institutional investors, retirement plans and financial intermediaries.

The company offers a variety of sophisticated investment planning and guidance tools. T. Rowe Price's disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research.

Shares Jump on Third Quarter Results

T. Rowe Price saw a nice spike after announcing third-quarter results. Earnings per share of 50 cents were below last year’s 56 cents but topped the Zacks Consensus Estimate by 9%.

The company also reported a 16% increase in assets under management, totaling $366.2 billion.

Management said the firm's investment advisory results relative to peers remain strong, with 87% of the T. Rowe Price funds across their share classes surpassing their comparable Lipper averages on a total return basis for the 5-year period ended September 30, 2009, 83% outperforming for the 3-year period and at least 79% outperforming for the 1- and 10-year periods.

The company also noted that it remains debt-free with substantial liquidity, including cash and mutual fund investment holdings of $1.4 billion that supports TROW’s ability to continue investing for the future.

During the past month, TROW’s return has more than doubled that of the major averages.

Bullish Forecasts

Analysts polled by Zacks have been hiking earnings estimates. The current full-year projection of $1.61 per share is up from last month’s $1.48. For 2010, the Zacks Consensus Estimate of $2.36 per share climbed from $2.05 over the past 30 days.

Stellar Fundamentals

In addition to having a balance sheet that shows no debt, TROW offers a solid return on equity (ROE) of 12.7%, which is in line with the industry average. The company’s net profit margin of 17.5% soars past the industry average of 8%. This Growth and Income pick also pays an industry-leading dividend yield of 2%.