Bull & Bear's STOCKS

In 1962, Sam Walton opened the first Wal-Mart store in Rogers, Arkansas. By 1970, the small chain was thriving with 38 stores and $44 million in sales, and Wal-Mart started trading as a public company. During the 1980's Wal-Mart branched out into different retail formats adding warehouse clubs and supercenters. Wal-Mart also implemented technologies like barcoding and the largest private satellite network to improve communications and inventory management. During the 1990's, Wal-Mart became the world's largest private employer, recorded its first $1 billion sales week and $100 billion sales year and entered the Chinese market. In the new millennium, Wal-Mart continues to grow with sales exceeding $400 billion in 2009 and international operations producing 25% of consolidated sales from 16 countries.
Wal-Mart's leadership over the last four decades has extended beyond retailing alone. Sam Walton believed that a company had citizenship responsibilities to its associates, customers and communities. His company has lived by that principle contributing over $400 million annually to local charities. Wal-Mart introduced a $4 prescription program, which has already saved customers over $396 million, and launched the "Better Health Care Together" partnership to help improve the U.S. health care system. Wal-Mart's leadership extends to environmental activism supporting environmental sustainability in all of its stores and the Acres for America program to conserve critical wildlife habitats. Wal-Mart has been recognized as a leader in employee relations, diversity and community initiatives receiving the Ron Brown Presidential Award for commitment to workplace diversity.

Sam Walton's principle of quality merchandise at the lowest price is reflected in Wal-Mart's Every Day Low Price (EDLP) strategy. Wal-Mart provides low prices to customers through the use of competitive sourcing, technology and innovative merchandising. A recent independent study showed that Wal-Mart's low prices save the average American family over $2,500 per year. The EDLP discipline is paying off in these challenging economic times as Wal-Mart gains market share and new customers, who are rediscovering the virtue of being thrifty by shopping at Wal-Mart.
Wal-Mart's well-tuned business model generates impressive returns on shareholders' equity. Over the past decade, returns on equity have averaged a superb 20%. This has translated into high shareholder returns as Wal-Mart's stock has been one of the best-performing publicly traded stocks over the last 30 years with an annualized total return of 24%. It is no wonder that Wal-Mart is one of America's Most Admired companies.

At its 39th Annual Shareholders' Meeting June 5th, Wal-Mart Stores announced that its Board of Directors has approved a new share repurchase program that gives the company authorization to repurchase $15 billion of its shares. This program replaces the previous $15 billion program, which was announced June 1, 2007 and had approximately $3.4 billion of remaining authorization. Under the program, repurchased shares are constructively retired and returned to unissued status. Wal-Mart remains committed to returning value to shareholders through share repurchase and dividends. During the last five years, Wal-Mart has repurchased approximately $21 billion worth of its shares. In addition to share repurchases made in fiscal year 2010, Wal-Mart will pay more than $4.2 billion to shareholders in the form of dividends during fiscal year 2010. Wal-Mart has increased its dividend every year since March of 1974, when it began paying a dividend of five cents per share. The company is paying an annual dividend of $1.09 per share this fiscal year, a 15-percent increase from $0.95 paid last year.

Over the years, Wal-Mart has used its strong cash flow to repurchase shares and pay dividends. Wal-Mart continues to boast a strong balance sheet and has great access to the credit markets. Strong free cash flow of $964 million in the first quarter allowed Wal-Mart to recently increase its dividend 15% at a time when many other companies were slashing their dividends. This marked Wal-Mart's 35th consecutive dividend increase. In addition to paying about $1 billion in dividends in the first quarter, Wal-Mart repurchased 19.2 million shares for $960 million at an average price of $50 per share. Wal-Mart has $4 billion remaining authorized for repurchase. We're adding more Wal-Mart stock to our shopping cart as we like bargains, especially from a HI-quality market leader which generates high shareholder returns and strong cash flows. Buy."

        Roger Conrads: "Rarely does the top player in a growing industry trade on the bargain rack. But that's where Verizon Communications (NYSE: VZ; $29.70) is now.
        The only time Verizon yielded more was immediately following the 1984 Ma Bell breakup, when it was known as Bell Atlantic. Meanwhile, valuations of 3 times cash flow and 85 percent of sales are near all-time lows. The main reason: Investors continue to shun Verizon for its shrinking traditional phone business, while not rewarding it for its growing wireless business.
       Doubters of Verizon's wireless business get another dose of reality from first quarter earnings, as it added 28.8 percent more customers and grew data revenue 56 percent. With the sale of 4.8 million rural wire lines to Frontier Communications (NYSE: FTR), consumer wireline operations will account for only 15 percent of revenue, with a growing amount of that from the super-speed FiOS broadband offering. FiOS customer additions topped first quarter expectations as the service became cash flow positive and costs dropped.
        The sale to Frontier will also remove $3.3 billion of debt from Verizon's balance sheet and cut the cost of installing FiOS territory-wide. The sold area comprises 43 percent of the square miles now served by the company but only 13 percent of its access lines.
        For shareholders, Verizon is still a bet the business will grow until it gets the market recognition it deserves. That may still take a while.
But there's substantial recession protection and a high growing yield while you wait. Buy Verizon Communications up to 35."

        The current economic weakness and constrained consumer and business spending has resulted in decreased growth rates. Further, the market growth in automobile/mobile segment may now be slowing as penetration rates increase and competing technologies emerge. Slowing growth, along with the significant price reductions that have occurred during the past two years, could result in lower revenues.
        To make matters worse, mobile phones are adding land-navigation capabilities. The current economic slowdown plus increased smartphone GPS usage could limit growth going forward. In this environment, predicting a technological winner is difficult.
        However, Garmin has been doing this for almost 20 years and know their market extremely well. Smartphone GPS is great if you're walking around, but in a car it's clumsy and doesn't offer nearly as many extras as stand-alone GPS systems do. Besides, Garmin is synonymous with GPS.
        Conclusion: Soon it will be difficult to fathom how humans survived without cell phones and GPS Units.
        We consider Garmin a true mid-cap value play. The stock was trading north of $125 in late 2007 and has dropped to the low $20's. The company is trading at an attractive valuation with no debt on the balance sheet. The company is the market leader with substantial opportunities to pursue. At current levels, the market has priced a high-growth stock at low-growth, value-stock valuations.
       Value Considerations: 1) Revenue (ttm) $3.49 billion; 2) EBITDA (ttm) $940 million; 3) PEG Ratio 0.99; 4) Price/Earnings Ratio 6.56; 5) Debt/Total Cap Ratio 0%."

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Five turnaround plays under $10

Richard Band: "Here are my five favorite turnaround candidates, all currently priced under $10 per share:

Alcoa (NYSE: AA). The global slump has hammered aluminum sales, and Alcoa - America's largest producer - kicked off the Q1 reporting season with a loss of $497 million. But AA isn't twiddling its thumbs. The company recently slashed its dividend and raised $1.4 billion through an offering of stock and convertible notes. At this point, it appears AA has enough cash in the till to keep the lights on until aluminum demand picks up. Buy on a dip to $7 or less.
Ford (NYSE: F). Unlike General Motors, Ford has refused to seek government financial aid. Instead, the second-largest U.S. auto maker persuaded its bondholders on April 7 to accept a debt-for-equity swap that lops off $9.9 billion of debt (28% of the company's total burden). Ford's vehicle-quality ratings are steadily improving, too, which should allow the nameplate to win back some market share after the recession passes. Buy if the shares backtrack to $3.25 or less.
MGM Mirage (NYSE: MGM). Billionaire Kirk Kerkorian nearly lost his casino empire in early April when he couldn't make a payment on his massive CityCenter Las Vegas development. Now, though, lenders have given him a waiver until May 15 to prove that MGM is adhering to the terms of the loans covering the project. My guess is that Kerkorian will bite the bullet and agree to a big stock issue that will dilute his ownership of MGM but allow him to keep CityCenter. Buy on a pullback to $4.75 or less.
New Ireland Fund (NYSE: IRL). You wouldn't think an entire country could go broke, but Ireland nearly did during last fall's global financial meltdown. Lately, however, the Irish government has propped up its banks, Geithener style, forestalling a 1930s-style collapse of the economy. It will take a long time for the Celtic Tiger to regain its health, but the Irish stock market seems to have scraped a major bottom in March. Meanwhile, the closed-end New Ireland Fund is trading at a steep 18% discount to net asset value (In other words, you're paying 82 cents for every dollar's worth of Irish stocks). A year ago, IRL sold for more than 4X the current price, so the upside is enormous. Buy on a dip to $4 or less.
Sun Microsystems (Nasdaq: JAVA). Somebody is going to swallow Sun. For almost a decade, the maker of Java software and SPARC servers has missed one opportunity after another to exploit the weaknesses of bigger rivals like Microsoft and IBM. Then IBM finally decided, in late March, to launch a takeover bid for JAVA. The deal crashed after Sun CEO Jonathan Swartz held out for richer payouts to Sun executives (the old greed routine again). But now, Schwartz is under excruciating pressure to enhance shareholder value - fast. Oracle's surprise offer (April 20) may stick, or a totally different suitor could step up. Don't overpay; buy JAVA on a retracement to $8.50 or less.

What to do now: For best results, buy these "survivors" as they slip back into our designated price ranges. All five stocks have bounced sharply off their lows, making some kind of a dip likely. If you can afford only one name on the list, I suggest New Ireland Fund, which gives you instant diversification among 29 holdings. It would take more than the luck o' the Irish for all 29 to go belly-up!"

        Richard Young's Top 10 Common Stop Picks are:
        1) Coca-Cola Co. (NYSE: KO): World's largest non-alcoholic beverage company owns 35% of NYSE-listed Coca-Cola enterprises. Also owns Minute Maid, Fanta, Sprite, and Dasani, the #3 bottled water brand.
       2) Archer Daniels Midland (NYSE: ADM): Founded in 1902, ADM is one of the largest agricultural processors in the world. ADM is a world leader in the production of soy meal and oil, corn for ethanol and sweeteners, wheat for bakery products, and cocoa for a number of chocolate products.
        3) Canadian National Railway (NYSE: CNI): Tracing its roots back to 1832, Canadian National Railway owns a 20,400-mile rail system that stretches across all Canada and down the Mississippi River to New Orleans.
        4) Schlumberger (NYSE: SLB): Founded in 1926, the world's leading oil field services company. Schlumberger invests more in research and development each year than all other oil field services companies combined.
        5) AT&T (NYSE: T): Tracing its roots back to 1876, AT&T is the largest communications company in the world by revenue and serves more wireless customers in the U.S. than any other carrier. AT&T is also the nation's largest directory publisher.
        6) FPL Group (NYSE: FPL): My rate-of-change chart for FPL shows the price bouncing off minus two standard deviations. Buy.
        7) Colgate-Palmolive (NYSE: CL): Founded in 1806 by William Colgate in New York, Colgate sold soap, starch, and candles. Today, Colgate spans the world and sells oral, personal, and home care products and pet nutrition. Colgate owns a wide variety of famous brands including Speed Stick, Palmolive, AJAX, Murphy's Oil Soap, and, of course, Colgate brand dental care products.
        8) Aqua America (NYSE: WTR) is highly acquisitive and will continue to add business through smart purchases. My price chart shows, Aqua's upward momentum since mid-year 2008.
        9) H.J. Heinz Company (NYSE: HNZ): Founded in 1869, Heinz & Noble delivered horseradish, pickles, sauerkraut, and vinegar, by horse-drawn wagon. In 1876, ketchup was added to the company's portfolio of products. Today Heinz sells 650 million bottles of ketchup and billions of single-serve ketchup packets each year. Other Heinz brands include Ore-Ida and Europe's Honig.
        10) Syngenta (NYSE: SYT): A leading crop protection company. Syngenta also ranks third in the world's high-value commercial seeds market.

       Konrad Kuhn's Featured Stock of the Month is Biosphere Medical, Inc. (Nasdaq: BSMD; $1.70).
        "Embolotherapy is the minimally invasive, image-guided therapeutic introduction of various biocompatible substances into a patient's circulatory system to occlude a blood vessel, either to arrest or prevent hemorrhaging or to devitalize or destroy a structure by occluding its blood supply. Biosphere Medical, Inc. develops, manufactures and markets products for medical procedures that use embolotherapy. Its core technologies consist of patented bioengineered polymers, which are chemical compounds created through the application to medical science, engineering principles and manufacturing methods. These core technologies are used to produce miniature spherical embolic particles, or microspheres, that are designed to have uniquely beneficial properties for a variety of medical applications.
       BSMD's principal focus is the application of its Embosphere(r) Microspheres for the treatment of sympotomatic uterine fibroids using a procedure called uterine fibroid embolization (UFE). BSMD's products continue to gain acceptance in this rapidly emerging procedure, as well as in a number of other new and established medical treatments. Uterine fibroids are benign tumors which can cause symptoms such as excessive bleeding, pain and disfigurement. They afflict approx. 25 mil. women in the U.S. Industry sources indicate that 200,000-300,000 of the 600,000 hysterectomies performed in the U.S. each year are due to fibroids. Furthermore, there is a large pool of about 6 mil. women in the U.S. who are symptomatic enough to see their doctor. Many of these women take drugs that are not curative and often have severe side effects such as osteoporosis, or they simply suffer silently. BSMD believes a growing part of the medical community perceives UFE to be a reasonable alternative for most patients who now undergo hysterectomy for treatment of their fibroids. BSMD was the first company to gain regulatory clearance to market a product for UFE in the U.S.
        Revenues for FY'08 rose to $29.3 mil., with a loss of (.34) per share. For Q1 FY'09, revenues rose to $7.3 mil., with a loss of (.10) per share vs. (.09) for the same period in the prior year. The company is financially healthy with cash, cash equivalents and marketable securities of $15.99 mil. and virtually no debt. Of the 18,347,022 shares outstanding, approx. 28.7% are held by insiders and 39.8% by institutions. The stock had a violent shakeout last month, but came roaring back ending up in stronger hands. We would Add/Buy on all weakness, especially in the 1.70-1.80 area, for a 1st target of 3.75, especially as BSMD seeks to pioneer and commercialize minimally in invasive diagnostic and therapeutic applications based on proprietary bioengineered microsphere technology.
       It's believed that many women will choose to have UFE procedures as they become more knowledgeable about the typical benefits of UFE versus the traditional recommendation of a hysterectomy (requires a 3-5 day hospital stay with 6-8 weeks recuperation), myomectomy (surgical removal of smaller fibroids), and multiple myomectomies (associated with increased blood loss, operating time, pain and postoperative morbidity, and longer hospital stays compared to hysterectomies). Also, hormonal treatment - temporary treatment since long-term use is associated with osteoporosis, menopausal symptoms and amenorrhea in premenopausal women. Despite evidence that indicates fibroid size shrinks with hormonal tissue, symptoms usually return to pretreatment levels within 6-mos. to 1-yr. After ceasing the hormonal therapy.
        BSMD seeks to expand the embolotherapy business worldwide, specifically he UFE procedure, and has commercially launched Embosphere(r) Microspheres in China. Furthermore, BSMD maintains its current technology leadership by continuously introducing new products and product improvement, through both internally developed and externally acquired technologies that improve and broaden the use of embolotherapy techniques. Most important, its pioneering expanding embolic HepaSphere(tm) Microspheres are indicated for the treatment of primary and metastatic liver cancer and, additionally, can be used to deliver chemotherapeutic agents, such as doxorubicin, to specified areas of the body. Ultimate target 6-7."

        David Sandell: "In our view the market, which lately has seen big rallies in the shares of some of the worst-positioned companies - notably the banks - has gotten well ahead of itself. A pullback is highly likely, and when it comes, a lot of stocks besides the banks will get hurt.
        One such stock is big box electronics retailer Best Buy (BBY). The shares have soared 150 percent since their late November lows, including a 75 percent gain since early March 2009. In part, this performance reflects some genuine positives for the company. Consumer spending has recently been better than expected, while some of the Best Buy's major competitors have faltered: Circuit City, the second-largest U.S. electronics retailer, has gone bankrupt, while Radio Shack continues to struggle.
        However, at this point Best Buy trades at a valuation that far exceeds its prospects in a tough economic environment, especially given that most consumer electronics products are now selling at big discounts. In particular, TVs and computers face pricing pressures, one result of competition from online retailers like Amazon (AMZN) and big retailers such as Wal-Mart (WMT), which have expanded their electronic offerings. Best Buy, currently capitalized at $17 billion, will likely survive, but we think its shares will come down as investors realize its premium valuation isn't merited.
        Expectations are for quarterly earnings to be down 20 percent compared to the year-earlier period; we think the results could be worse. Regardless, the shares now trade at around 15 times forward earnings, the same multiple as at the end of 2007, when consumers and the economy were in far better shape. Best Buy joins our Fast Track portfolio as our newest short position."

        Douglas Gerlach: "Branded drug product companies are attractive for their high profit margins and blockbuster drug potential. However, there is a nicely growing market for companies that take branded drugs at the end of their patent life and market them as generics. Fellow IAS stock CVS Caremark Corporation actually makes better profit margins selling generic drug products than branded ones. Perrigo Company (Nasdaq: PRGO) develops, manufactures and distributes over-the-counter (OTC) and prescription (Rx) pharmaceuticals, nutritional products, and active pharmaceutical ingredients.
        The firm's largest segment, Consumer Healthcare, markets OTC and nutritional products like Omeprazole, an equivalent of Prilosec, for the treatment of frequent heartburn, and Cetirizine, an equivalent of Zyrtec, for relief of allergy symptoms and nasal congestion. The company strives to be the first manufacturer to develop and market key new store label OTC drugs either through internal development or with partners. Perrigo markets approximately 1,130 store brands to about 100 customers, including Wal-Mart, CVS, Walgreen, Kroger, Safeway, Dollar Genetral, Sam's Club and Costco. These retailer like selling Perrigo's products under their name because they can usually undercut national brands on price, yet make a better profit margin. During the recession, customers have been substituting brand name products with cheaper alternatives that they view as equivalent, leading to strong growth. For the first nine months of Fiscal 2009, Perrigo's Consumer Healthcare segment has grown sales 28% to $1.2 billion, accounting for 82% of sales.
        The Prescription (Rx) Pharmaceuticals segment manufactures and markets primarily topical generic prescription drug products for the U.S. market. The firm markets approximately 250 generic prescription products to approximately 110 customers. Sales for this segment decreased 6% for the first nine months of Fiscal 2009, largely due to the absence of an $8.5 million royalty payment received in Fiscal 2008, which accounted for 8% of sales.
        The Active Pharmaceutical Ingredients (API) segment sells ingredients to pharmaceutical companies that manufacture branded or generic drugs. For the first nine months of Fiscal 2009, sales decreased 13%, largely due to decreases in sales of three key products, which accounted for 6% of sales.
        The remaining 4% of sales comes from pharmaceuticals and diagnostic products sold in Israel. In March 2009, Perrigo discontinued consumer product sales in Israel in order to focus on its pharmaceutical products.
        The firm's long-term strategy for growth is made up of several elements. The recession-induced thriftiness of consumers, a shopping habit likely to remain even after the recession ends, will favor market share gains by store brands. The flood of branded drugs moving to OTC should continue, as the company anticipates that up to $10 billion in branded sales will be available to convert to OTC over the next five years. Cost cutting in the underperforming Rx Pharmaceuticals and API segments will help shore up financial results.
        Acquisitions will also play a continuing role and, for the Consumer Healthcare segment, accounted for $109.8 million of sales growth in the first nine months of Fiscal 2009. The company is actively looking to acquire firms that can help expand its product offerings as well as geographic distribution.
        Wall Street analysts expect Perrigo to generate annual EPS growth of 12% for the next several years. We believe this is reasonable and utilize the same 12% for our EPS growth rate. Five years of this growth could lead to EPS of $2.66. Capping the high P/E ratio at 20 (versus the high average P/E ratio over the past five years of 27.2), the potential high price is 53. The downside risk appears to be 22% to 21, the product of trailing twelve month EPS of $1.73 and a low P/E ratio of 12 (versus the average low P/E ratio of the past five years of 16.0). If these results come to pass, the annual return could be as high as 15.6%, made up of 0.9% from the dividend yield and the balance from appreciation."
        Investor Contact: Mr. Arthur Shannon, IR, Perrigo Company, 515 Eastern Ave., Allegan, MI 49010, (269) 686-1709, ajshannon@perrigo.com. Website: www.perrigo.com.

        Kelley Wright: "While the primary trend of the market remains down, market participants are decidedly more upbeat and there is emerging evidence that consumer confidence is starting to rebound. That being said, it is still too early to sound the all clear signal, however, improving levels of investor and consumer sentiment are required ingredients for this economy to work its way out of recession.
        There is opportunity in the stock market. Companies with transparent business models, with clean balance sheets and clear evidence they can pay dividends and interest without question, that have received no government assistance, will survive this economic down cycle and prosper coming out. These are the companies that will reward you for years to come.
        Investment Quality Trends primary purpose is to assist subscribers in growing their capital and income base from which to derive cash for their current and future needs. To that end we believe that high-quality stocks purchased at historically low-price-to-high-yield offers the best potential for downside protection and upside appreciation.
The Timely Ten, therefore, is not just another "best of, right now" list. It is our reasoned expectation on our methodology and experience for what we believe will perform best over the next five years. Do we believe that all 10 will go up simultaneously or immediately? Of course not. Our four decades of research and experience, however, leads us to believe that these stocks, purchased at current Undervalued levels, are well positioned for both growth of capital and income.
        The Timely Ten consist of Undervalued stocks that generally have a S&P Dividend & Earnings Quality rating of A- or better, a "G" designation for exemplary long-term dividend growth, a P/E ratio of 15 or less, a payout ratio of 50% or less (75% for Utilities), debt of 50% or less (75% for Utilities), and technical characteristics on the daily and weekly charts that suggests the potential for imminent capital appreciation. Recent selections are: 1.) Coca-Cola (KO); 2.) Becton, Dickinson (BDX); 3.) Johnson & Johnson (JNJ); 4.) Philip Morris Int'l (PM); 5.) United Technologies (UTX); 6.); United Pacific (UNP); 7.) Abbott Labs (ABT); 8.) IBM (IBM); 9.) Nike, Inc. (NKE); and 10.) Altria Group (MO)."

        Roland Carter's recently recommended stocks include McDonalds, The Clorox Co., Wal-Mart, Chevron, and Snap-On, Inc.
        "McDonald's (MCD: $58.99) - The world's pioneer in fast-food restaurant and undeniable leader with about 32,00 locations worldwide (75% owned by franchisees). Foreign operations produce about 65% of total sales and 50% of earnings. With the U.S. dollar weakening again, multi-nationals such as MCD benefit. 20-30 years ago this was a revered growth stock paying a stingy, though rising dividend. The rate of growth has now slowed, but MCD still appears to be able to grow EPS near 10% plus they've gotten generous on the dividend in recent years, pushing the payout to nearly 50% of earnings. We bought quite a bit this month @ 52-54 for about a 3.8% yield. We figure we're about 6 months from another dividend increase that'll give a 4% yield near 54-55. If you're a trader wait for a pullback from its recent 6-point spurt. We have sell points near 62 and 66 for traders.
        The Clorox Co. (CLX: $52.44) is a producer of a diversified line of powerful names ranging from their namesake bleach to 409, Tilex, Pine-Sol, Glad bags, Kingsford Charcoal, cat litters, Armor All and STP auto care products, Hidden Valley salad dressings, etc. Among their products are disinfecting wipes that at least in Mexico are flying off the shelves due to the swine flu scare. CLX has added a 4th production shift and is running around the clock making the wipes. Their recent quarter was a blow-out +64% vs. 2008's, but they hinted of slowing growth next quarter and perhaps a slight EPS drop. Still, they should earn a record $3.75 in 2009 (ends 6/09) and maybe $4.10 in 2010. We look for a dividend increase to at least $2.00 annually next quarter, so my recent purchases near 51 should be near a 4% yield. CLX has repurchased 41.5% of their shares out since 2001, about 2/3 of that total from Europe's Henkel Co. That took debt way up and book value down. Debt looks high, but it's moderate. Someday CLX will probably be taken out by someone like Unilever or Procter & Gamble (PG owned them at one time).
        Wal-Mart (WMT: $49.74) is the world's largest retailer with 2008 revenues topping $400 billion. Its rate of growth is slowing, too, but their P/E is reasonable and WMT has been taking lots of business from most other retailers over the past year with their low-price structure. Their foray into groceries in recent years has been most successful. As a consumer, our household finds their grocery prices to be unbeatable and quality is excellent across all product lines. WMT shares have moved around, roughly 42-61 for the past 9 years while all their numbers are now up about 150%. 49+ is only 3 points above its yearly low and their news is good.
        Chevron (CVX: $66.67) based on proven reserves, CVX is the world's 4th largest oil company. They're not near the top of the pack in some important categories (5-year reserve replacement rate = 97% vs. industry average of 112%), but they have powerful finances and the wherewithal to make acquisitions. Their 12/31/08 balance sheet shows 0-net debt. The shares are up about 20% from their double-bottom low near 55, but still buyable (crude is up 100% from its low near $33/bbl.). We expect a modest dividend increase shortly on CVX.
        Snap-On, Inc. (SNA: $31.15) - here's a new name for those always looking. Founded in 1920 SNA is a leading global maker and marketer of professional tools, diagnostics, and service solutions for auto-truck repair. SNA was presented once years ago, and it's a trader. Go review its four moves, 21 to 32+ in the three years of 2000-2002 surrounding the last recession. SNA peaked at 62 in 2008, then dropped to 20. EPS will fall from 2008's record $4.07 to perhaps $3.10. $3.50 is forecast for 2010. This good little ($2.9 bb sales) player may well pick up some business due to the closing of GM and Chrysler dealers."

       Jim Trippon: "Industry giants China Mobile and China Unicom are currently among the market's biggest Big Cap gainers. Both companies are soaring in anticipation of a new generation of 3G phones entering the world's biggest wireless market.
       For China Unicom (CHU), it's all about the much-coveted iPhone. Unicom executives have been in negotiations for months with Apple about exclusive use of the iPhone on its network. An agreement had been expected on May17th, according to a number of sources, but the lines of communication went silent during the middle of the month.
       The breaking news that is driving both stocks into positive territory is a report that China Mobile (CHL) will be receiving access to Google's Android phone. Negotiations between China Mobile and Apple for the iPhone had broken down several months ago because Apple was holding out for substantial revenue-sharing, something that China's largest phone company flatly refused to concede.
       The latest reports about China Mobile's access to the Google Android phone are also very good news for China Unicom. Regulators have been holding back news about China Unicom's introduction of the iPhone until the company's biggest competitor, China Mobile, concludes its deal for a comparable 3G phone on its network.
       In other words, China Mobile gets the Android. That clears the way for China Unicom to get the iPhone. In the tightly regulated Chinese telecom world, both sides win and there are no losers. (except perhaps the smallest of them all, China Telecom.)
       This win-win story means that both stocks have been outperforming the market in recent days. We are up more than 20 percent on China Mobile and almost 40 percent on China Unicom.
       Reports indicate that China Mobile has struck an especially rich deal for apps, the applications (or small programs) that make 3G phones so versatile. Telecomasaia says the world's biggest phone company will demand a 50 percent cut of revenues from its app store. The industry norm is 30 percent. (This is exactly the point of contention that had derailed talks between China Mobile and Apple.)
       China Mobile's app store, the so-called "Mobile Market" will be the world's first carrier operated storefront.
       The terms of the China Unicom deal are still unclear but it's obvious that the market feels access to the iPhone will be a huge bonus for the nation's second-largest carrier. China Mobile has 482 million subscribers and China Unicom has 126 million users, a vast and rich market for new 3G products in years to come!"
       Editor's Note: China Stock Digest is the premier, independent, research firm that evaluates the publicly traded companies of China from the perspective of individual investors. For more information visit the website at www.chinastockdigest.com.

        CVS operates two segments. Retail stores generated 53% of sales in 2008, while pharmacy-benefit management (PBM) accounted for the rest.
        The retail unit has grown revenue 11% in the past 12 months. Prescription drugs account for about two-thirds of retail sales, with the balance coming from general merchandise (15%), over-the-counter drugs and personal care (13%), and beauty/cosmetics (4%).
        PBM revenue rose 2% over the last 12 months, but the unit could reap big rewards in coming years as baby boomers age. The PBM unit contracts with employers, insurance companies, and other sponsors of health-benefit plans to administer drug coverage for groups. Typically, a PBM will buy drugs in bulk at a discount, then pass on some of those savings to patients in its benefit plans.
        Not surprisingly, this attractive market is drawing new competition. In May, Wal-Mart Stores ($49; WMT) announced plans to expand a pilot program selling prescription drugs direct to companies.

        CVS has grown enormous on a rich diet of smaller competitors, swallowing them and adroitly folding them into its operations. Since 1997, CVS has completed more than six deals worth at least $1 billion apiece.
        The list of acquisitions includes once-familiar drugstore names such as Revco, Arbor, Eckerd, Save-On, Osco, and Longs. The Longs acquisition, completed for $2.7 billion late last year, added 521 stores and expanded CVS' presence in California, Hawaii, Nevada, and Arizona. Also included in the deal was a PBM unit with more than 8 million members.
        The $26.5 billion acquisition of Caremark in 2007 changed the game for CVS. Adding a huge PBM to a company that already operated thousands of drugstores opened up opportunities for cross-marketing unavailable to anybody else in the industry. A pharmacy trade group has gone to the Federal Trade Commission with allegations that CVS is unfairly using its joint business model to steer PBM customers to its retail stores by hiking co-payments for prescriptions filled elsewhere. While this issue makes good headlines, we don't expect it to have much effect on operating results.

Vivian Lewis: "The pseudo-science against Avandia, the GlaxoSmithKline diabetes pill, has been exposed but that doesn't mean things are lovely either for GSK or diabetics. Avandia does increase compliance because you don't have to do injections. But it does not significantly cut the rate of heart disease in users. Diabetics are prone to heart disease. The bad news is that women taking Avandia and its rivals have a 43% higher risk of bone fractures, which is a bummer. Fractures are no fun and can kill you, as the statiscal whizz Peter Bernstein proved over the weekend by dying of a fractured hip (at age 90 so it is not that bad.)
GSK is fighting back with a new drug, Syncria (albiglutide), in phase II trials in Dallas. The reports are very encouraging. Syncria cuts glucose levels and weight which should make it a popular choice for women; alas it has to be injected.
GSK also is working with Israel's Aposenses on a technology of molecular imaging to track cancer therapies as they work in the body. And it is developing stapled peptides with Aileson of Cambridge MA. A stapled peptide is forced into an alpha-helical shape to get through the body's barriers against certain shapes of drugs. This is all part of GSK's new research strategy, or buying into outside pioneer firms rather than using its own pricey labs for drug discovery. Nor is GSK free of other pseudo-science claims, that neurological disorders in babies results from mercury in vaccines. A case in Georgia is still pending."
Editor's Note: Editor Vivian Lewis features 4 portfolios: yield, buy and hold, and speculative for individual stocks and bonds; and a funds portfolio, which is in closed-end funds (US and Cdn).

James Stack: "From a technical standpoint, all the major blocks that historically have preceded the best buying opportunities are in place. Our latest recommended purchases have been in the Consumer Discretionary and small-cap arenas where we have taken a 4% position in Nike, Inc. (NKE) and an 8% position in the iShares Russell 2000 Index ETF. Nike, ideally fits our stringent stock selection criteria of seeking the right combination of growth and value.
As the above headline emphasizes, Mark Parker, CEO of the largest seller of athletic footwear and apparel in the world, is not content with business as usual. Management is quick to reaffirm the principles that have won Nike - an industry leading position - innovation, consistency, and competitive fire. To remain a market leader, management is basing the business strategy at Nike on three key criteria: providing consumers with premium products and experiences; pursuing the greatest growth opportunities; and leveraging Nike resources and capabilities. These same criteria can be used to outline a rationale investment.

       "Hudson City Bancorp (Nasdaq: HCBK) is a fortress of safety with plenty of upside potential," says value investor Nathan Slaughter.
       In his Half-Priced Stocks, www.streetauthority.com, he explains, "The 140-year old bank is a classic example of the tortoise and hare fable. Its slower, measured approach has paid off handsomely and keptit at arms length from the problems plaguing other banks."
       "Hudson City manages a network of 130 bank branches spread throughout affluent regions of New Jersey, New York and Connecticut. At last count, the firm had over $20 billion in deposits and approximately $56 billion in total assets.
       "According to an independent study, this tight-knit institution has been rated one of the nation's three strictest mortgage underwriters. So when most other banks relaxed their standards in recent years to attract riskier clientele, Hudson City stuck to its conservative roots and refused to budge.
       "You won't find any ticking time bombs here - there isn't even any auto, credit card or commercial real estate loans lurking on the balance sheet. The firm has never originated a single subprime mortgage and steers clear of exotic option adjustable-rate products.
       "Instead, the company deals primarily with wealthy customers sporting top FICO scores who can make hefty down-payments and easily afford their monthly notes.
       "Its branches are concentrated within 10 of the nation's top-50 counties in terms of median household income. And its conservative loan-to-value ratio of 60% is much lower than that of its peers.
       "All companies talk about being lean and cutting costs, but Hudson City walks the walk. In fact, the company maintains an industry-leading efficiency ratio (operating expenses/revenues) below 20%.
       "Hudson City hasn't just survived this historic downturn - it has thrived. Remarkably, the company didn't need a penny of government TARP money. The company is well on its way to delivering its 11th straight year of record earnings in 2009.
       "Since Hudson City first hit the market 10 years ago, the firm has generated cumulative profits of $2.3 billion - and every penny of that has been returned to shareholders through dividends and share repurchases.
       "In fact, investors have been treated to six dividend hikes in the past six quarters. Beginning with a payment of $0.09 per share in early 2008, subsequent distributions ratcheted to $0.11, and then to $0.12, $0.13, and $0.14 - and the next payout will be $0.15 per share.
       "Most banks have been forced to slash their dividends or eliminate them entirely. Only a select few have had strong enough balance sheets to raise payments. So it speaks volumes that Hudson City has lifted distributions not once, not twice - but six times since this mess started.
       "Of course, this is par for the course for a well-managed company whose dividends have risen to the tune of +57% annually since the firm's IPO in 1999. Meanwhile, over the same time frame, the shares have vaulted +935%, versus a -20% decline in the Dow.
       "Looking ahead, I think shareholders will see double-digit total returns this year. In addition to the momentum discussed above, a steeper yield curve should translate into fatter profits - and Hudson City's net interest margins have already widened considerably.
       "Despite posting record profits of $127 million (up +44%) in the first quarter, HSBK shares have still wilted to around $12 - down from a peak above $20. I think this unwarranted pullback presents an attractive opportunity.
       "With a fair value of $24, HCBK is a true 'half-priced stock.' With all this in mind, I see this best-in-breed bank as a sound idea for income investors."

       "One 118-year old firm benefiting from the tight economy is Hormel Foods (NYSE: HRL), which specializes in low cost foods," notes Jim Powell in Changes & Opportunities Report, www.powellreport.com.
       "Many blue chip companies that produce low cost foods - including Hormel -- should thrive for the next few years.
       "The company makes Spam, Hormel chili, Dinty Moore beef stew, and dozens of other inexpensive meals that are flying off the shelves.
       "That's not surprising since a can of Spam costs about $2.50 and Hormel chili goes for about $1.50. The higher food costs go, the better Hormel should do.
       "I am impressed with management's response to the recession's impact on the public's food purchases. Instead of hunkering down until better times return - a common decision in large corporations - Hormel quickly redirected its resources to its low-cost products.
       "For example, the company just switched a new processing plant in Iowa from premium foods to canned meats and non-frozen microwave meals.
       "The company also introduced Spam singles and other forms of its winning products. It is unusual to find a big company that is as quick to adapt to new conditions as Hormel.
       "Not surprisingly, Hormel's first quarter profits rose 4%, which is remarkable in a sinking economy. Looking ahead, management said its yearly profit should be at the upper end of its target range of $2.15 to $2.24 a share. The stock is up 8% so far this year, vs a 6% decline for the S&P Food Producers Index."

       "Fossil (Nasdaq: FOSL), a global firm specializing in consumer fashion accessories such as watches, is our latest featured buy," says Charles Mizrahi in Hidden Values Alert, www.hiddenvaluesalert.com.
       "In the watch and jewelry product category, Fossil has a diverse portfolio of globally recognized owned and licensed brand names under which its products are marketed.
       "Fossil's products are distributed globally at varying price points to service the needs of customers, whether they are value conscious or luxury oriented.
       "Its broad-based wholesale customer base includes retailers such as Neiman Marcus, Nordstrom, Macy's, Dillard's, JCPenney, Kohl's, Sears, Wal-Mart, and Target.
       "It sells its products in the US through a network of company-owned stores, which includes 125 retail stores located in premier retail sites and 74 outlet stores located in major outlet malls.
       "FOSL has total debt of $10 million on shareholder equity of $880 million. The company has decreased the amount of outstanding shares via buybacks, from $71 million in 2004 to $66 million in the latest fiscal year.
       "FOSL has a strong balance sheet, with $178 million in cash. Free cash flow is currently $45 million. Fossil is a well-run business, and a price of $19 or lower per share represents a very good value.
       "If it can grow earnings at only 9% per annum and maintain a P/E of 11, the stock will handsomely reward investors during the next five years."

       "We screened our database for standouts based on meaningful profit surprises," says 'quantitative analyst Richard Moroney.
       In Upside, www.upsidestocks.com, a service focused on applying in-depth quantitative analysis to small to mid-cap growth companies, he looks at a trio of stocks earning his "Best Buy" rating - Priceline (Nasdaq: PCLN), Sybase (NYSE: SY), and Synaptics (NASDAQ: SYNA).
       "All things equal, the better a stock's earnings momentum and profit outlook, the more likely it is to outperform in the year ahead.
       "Priceline has delivered seven consecutive quarters of better-than-expected profits. The online travel retailer said March-quarter earnings per share were $0.53, or $1.09 excluding one-time items - up 43% and handily above the consensus estimate of $0.91.
       "Revenue jumped 15% to $462 million, also topping the consensus. Overall gross bookings, the value of all travel services bought, rose a healthy 11% to $1.9 billion, while U.S. gross bookings increased 18%.
       "Priceline appears to be gaining market share, partly because its name-your-own-price method of booking allows consumers to bid for tickets at sharp discounts. For full-year 2009 per-share earnings, the consensus estimate stands at $6.56, up from $5.89 on Dec. 31.
       "Sybase, a maker of enterprise software for managing data and information, posted impressive March-quarter results. Excluding one-time items, per-share earnings were $0.49, up 26% and $0.07 above the consensus.
       "Total revenue rose 3%, with license revenue up 14%. Profit margins have improved in recent quarters, and stricter cost controls should sustain this trend.
       "A strong competitive position, expanding product line, and large recurring revenue base bode well for growth. For 2009, Sybase expects per-share earnings of $2.20 to $2.24, compared to $2.24 earned in 2008.
       "The consensus is $2.24, up from $2.16 at the start of the year. For 2010, per-share earnings are expected to increase 13% to $2.51.
       "Per-share profits should benefit from share repurchases, as buybacks have averaged roughly $100 million annually since 1998.
       "Synaptics, a leading maker of touch-screen solutions for electronic devices, has a habit of beating expectations.
       "Per-share earnings have exceeded expectations for 11 straight quarters, including a 15% surprise for the March quarter. Per-share earnings were $0.38 excluding non-cash charges, up 65%. Revenue jumped 28% to $101 million and also exceeded expectations.
       "Looking ahead, Synaptics should benefit from strong demand for its technology used in small, netbook computers.
       "Management now forecasts June-quarter earnings per share of $0.37 to $0.47, versus the $0.31 earned a year earlier. Consensus profit estimates call for 65% profit growth for fiscal 2009 ending June and flat profits for fiscal 2010."

       With the 2009 hurricane season officially beginning this past week, Sean Broderick offers four stock picks - two bullish, two bearish - to play this summer's potentially "wild weather."
       In his Uncommon Wisdom, blogs.uncommonwisdomdaily.com, advisory he offers one pair of picks that he believes will do well should the hurricane season turn out to be mild and a second pair of stocks that would see rising profits in the event that damaging storms hit in "Hurricane Alley."
       "Last year's stormy weather spawned 16 named storms, which was higher than the long-term average of about 10 tropical storms and six hurricanes per year in a typical Atlantic hurricane season.
       "The major hurricane forecasters have now made their predictions, and it's for a 'moderate' hurricane season. Cooler seas off the coast of Africa and a prediction of a weak El Nino get the credit for the calmer forecast.
       "That's good news for America's oil and gas industry, which is still recovering from the carnage caused in Energy Alley last year by two hurricanes - Ike and Gustav.
       "Unfortunately, the number of storms in any given year are notoriously unreliable. And the second piece of bad news: It only takes one well-aimed hurricane to make the season a bad one. So don't take the forecast for a 'moderate' season as a reason to slack off in your preparedness.
       "And one well-placed hurricane could also cause major damage to Energy Alley, And should a hurricane line up to hammer Energy Alley in the Gulf of Mexico, there will be winners as well as losers.
       "Winners: Oil service companies, especially those that fix broken rigs and pipelines and shuttle crews back and forth to platforms. Also, disaster recovery companies that clean up after hurricanes.
       "Among individual stocks Tetra Technologies (NYSE: TTI) is an oil services company that provides plugging and abandonment services on offshore wells.
       "Hurricane cleanup last year blew a lot of new business Tetra's way. The company looks cheap, trading at a price-to-earnings growth of 0.7, and it recently hit a three-year high in free cash flow.
       "Home Depot (NYSE: HD) is America's home fix-it center. The company always cleans up on hurricanes - selling supplies before and after the storms and raking in bigger profits.
       Last year's storm season couldn't save the stock, which was crushed by the falling housing market. Now, however, Home Depot is dirt-cheap, and hurricane gains could give it more of a boost.
       "Losers: Oil drillers and producers with large operations in the Gulf of Mexico, as well as insurance companies.
       "Allstate (NYSE: ALL) is the largest publicly traded U.S. home and auto insurer saw its bottom line clobbered by Ike and Gustav last year.
       "Along with damage from a record number of tornadoes, the two storms gave Allstate a whopping $1.82 billion in catastrophe costs in the third quarter of last year - its first money-losing quarter since hurricane Katrina. Do you think this company is sensitive to storm season? Yes!
       "Plus, Allstate has bounced back hard with the market rally, so it's set up for a fall. To be sure, Allstate could get a bailout from Uncle Sam - it's hard to tell what the Good-Time Charlies in Washington will throw money at next - but if the winds pick up, Allstate looks pretty vulnerable.
       "Anadarko Petroleum (NYSE: APC) is a strong company, and one I've traded from the bullish side before. But hurricanes have the potential to be kryptonite for this company.
       "Anadarko operates the Independence Hub, a platform complex located more than 100 miles offshore that has the capacity to handle 1 billion cubic feet of daily production.
       "Last summer, Anadarko had to shut down its production in the Gulf and evacuate its personnel from offshore platforms due to hurricanes. The company lost 5 million barrels of oil equivalent (BOE) of production.
       "These are all speculative plays. Not only are you speculating on the stocks, but you're speculating on the weather. But if you feel like you know whether we're in for a strong hurricane season or not, these stocks - both bullish and bearish - could be just the ticket."

       "We've long been fans of emerging market stocks," says Timothy Lutts. In The Cabot Market Letter, www.cabot.net, the advisor highlights some of his favorite bets on global stock markets.
       "We are attracted to emerging markets for one simple reason - the economies of countries like China, Brazil, India and others are almost assured of growing at a faster rate in the years ahead than the U.S.
       "We also think investor perception of emerging market stocks is sure to rise over time, as people get more comfortable with the idea that these countries are stable and have acceptable governments.
       "Of course, when fear overwhelms greed, as it did during the bear market, emerging market stocks can be a terrible place to invest; most fell 75% from peak to trough! But now, as the world economy is showing signs of bottoming out, money is once again ﬁnding its way to the fastest growing places on the planet.
       "The iShares MCSI Emerging Markets Fund Index (ASE: EEM) gives a good, broad perspective of the emerging markets. It etched a big bottom in the 18-20 area and has decisively moved to new multi-month highs recently.
       "Importantly, the rising relative performance line versus the S&P 500 is also at new multi-month peaks, a sign that buyers are buying these stocks more eagerly than U.S. big caps. Long story short, if this bull market persists, expect emerging markets to help lead the way.
       "How can you make money from them? The simplest way is to buy a broad fund that tracks one or more emerging markets, such as EEM.
       "A couple of others to consider are the Brazil iShares (ASE: EWZ) or the Powershares Golden Dragon Fund (NYSE: PGJ), which tracks the performance of all U.S.-listed Chinese stocks.
       "You can also go into individual equities; we're high on the Chinese online gaming sector, with two pure plays in the Model Portfolio - NetEase (Nasdaq: NTES) and ChangYou.com (Nasdaq: CYOU).
       "There are also many potentially exciting commodity-related stocks found in Russia and Brazil. Much of the marginal demand in oil, copper, steel and even gold is being driven by emerging market economies.
       "Thus, the DB Commodities Index (NYSE: DBC), while not showing much accumulation is something to keep an eye on.
       "Emerging market stocks were some of the biggest winners of the last bull market, and following the bear market wipeout, they're beginning to act like leaders again. Don't ignore them!"

        "Over the past year, General Electric (NYSE: GE) has taken its lumps; however, I now suggest it may be opportune to reconsider one of America's great industrial companies once more," says Glenn Rogers.
       The contributing editor to Gordon Pape's Internet Wealth Builder, www.buildingwealth.ca, suggests, "General Electric is indeed a proxy for the U.S. economy. So if you believe the worst is behind us that should also be true of GE."
       "General Electric is, to my mind, a great Obama infrastructures play given that it has extensive businesses in energy infrastructure and technology infrastructure. The company is also active in nuclear energy, wind and solar energy, water treatment, smart grid technology, etc.
       "Another pet Obama initiative is the modernization of the American health care system. GE has extensive assets in the health care industry and will certainly benefit from this initiative.
       "The company has also applied for TARP funds to help finance a major initiative in battery technology so they will be at the forefront of the electric transportation movement.
       "Unfortunately, the company also has exposure to the weak consumer spending market through their consumer electronics business, appliance business, and consumer finance business.
       "It is exposed to the advertising business through their media and entertainment division that includes NBC Universal, CNBC, and numerous other television and cable assets. Normally, these have been a good part of the corporate asset mix but this division has been negatively impacted by the downturn in advertising dollars and will likely be soft for the rest of this year.
       "But it's been GE's financial business that has caused them most of the problems these past few months. For several years, a significant amount of GE's profits were derived from the financial activities but that has not been a great place to be since a credit meltdown began in mid-2008.
       "Through that same division they had significant exposure to the commercial real estate market that has been hit extremely hard in recent months. The best that can be said is that the company is working its way through these issues and, given the current price of the stock, it is likely that most of these problems are already priced in.
       "The other issue with the company is its sheer size and complexity. Some analysts have recommended that the company be broken up or significant assets sold but so far there's been no indication that major pieces of the business will be split off. There's been a lot of talk of selling the appliance division and this might happen once the overall economic environment improves.
       "But despite the negatives, the fact remains that this company has leading-edge industries in most of the important areas that are likely to help pull us out of this recession.
       "Te aviation and rail divisions will be under some pressure in the mid-term since the airlines and rail companies are struggling. However, they were the world's largest manufacturers of jet engines and locomotive engines and as the airline and rail fleets begin to age GE will benefit.
       "The company is developing hybrid locomotives and fuel-efficient jet engines which will be in high demand once oil prices rebound, as they are certain to do over the next couple of years.
       "Financially, the company is a behemoth with $182 billion in sales and over 300,000 employees worldwide. Last year's sales increased by just under 6% which given the environment is pretty good.
       "The price/earnings ratio is less than 10 and even with the last dividend cut the stock yields over 9%. It is very likely that GE will raise the dividend next year, assuming the economy begins to pick up.
       "So what will be the catalyst that gets GE stock moving again? I believe it will be earnings, which should show improvement in the fourth quarter of this year and begin to accelerate in 2010. I think it's likely that the stock will return to a $30 price level within a year and a half.
       "Investors who buy now should not experience a lot of trauma since I think that the massive sell-off in March marked a bottom that we are not likely to see again in the stock. I wish I could say that I had jumped into GE at those levels. I didn't, but I own it now and will likely buy more."

       "Almost Family (Nasdaq: AFAM) is making its triumphant return to our 'focus list'of buys after we sold it in January," says analyst Tracey Ryniec. Here's her latest in Zacks Elite Stocks, register.zacks.com.
       "AFAM provides home health nursing, rehabilitation and personal care services in 11 states. The company has two segments: Visiting Nurse (VN) and Personal Care (PC).
       "Visiting Nurse provides skilled nursing and physical, occupational and speech therapy. Personal Care includes custodial and personal care services.
       "The company's acquisition strategy continues with the May 27 announcement that it was acquiring the assets of Florida-based Central Florida Health Alliance (CHFA), a two-hospital health care system with home health branches.
       "CHFA's operations generated $4.5 million in revenue in the last fiscal year, but Almost Family doesn't expect it to have a material impact on its 2009 results. The terms of the deal were not disclosed.
       "The company continues to post strong earnings results despite the economic slowdown. On May 6, Almost Family surprised on estimates for the 6th straight quarter by 13.33%.
       "Net income rose 118% to $5.6 million, or 68 cents per share, compared with $2.5 million, or 44 cents, in the year ago period.
       "Revenue surged 77% to $69.2 million. The Visiting Nurse segment saw big gains, jumping 97% compared to a year ago with 41% of that coming from organic growth and the rest from acquired operations. Personal Care segment revenue gained 14%.
       "Consensus estimates are rising for the second quarter and 2009. Second quarter estimates rose 3 cents to 67 cents in the last month.
       "2009 consensus estimates jumped nearly 6% to $2.74 from $2.59 per share in the last 30 days, with 5 out of 6 covering analysts raising including one in the last week. Analysts expect year over year earnings growth of 26.04%.
       "Overall, in our view, the stock has solid fundamentals. Almost Family is a Zacks #1 Rank (strong buy) stock. It is attractively valued with a forward P/E of just 9.5. The company has an outstanding 1-year return on equity of 21.03%."

       "Even in a nasty recession some firms generate consistent earnings," says Stephen Leeb, who looks to Argon ST (Nasdaq: STST), a defense stock, in The Complete Investor, www.completeinvestor.com.
       "Argon ST is an addition to our Small-Cap Value Portfolio The recently approved $3.4 trillion federal budget for fiscal 2010 includes $534 billion for the Defense Department, a 4% year-over-year increase in spending.
       "Adjusting to changing threats, the Pentagon will be focusing less on traditional weapons systems and more on the ability to fight unconventional enemy forces through the use of unmanned drones and satellites for intelligence gathering, surveillance, and reconnaissance.
       "One likely beneficiary of this shift is Argon ST. Argon specializes in surveillance and reconnaissance systems used by U.S. and its allies' military and intelligence customers.
"The company's signals intercept and processing systems are software-based and can be run on commonly available receivers, computers, and workstations.
       "A competitive advantage is that these cost-effective systems offer wide-ranging capabilities and high reliability and can be readily upgraded.
       "The company has been awarded several contracts, while platform upgrades along with new programs - especially ones focused on airborne signals intelligence such as the Aerial Common Sensor - sshould ensure solid long-term growth of better than 15% a year for the next several years."

       "Itron (Nasdaq: ITRI), which is involved in the build-out of smart grids - has been our radar screen for awhile," says growth stock expert Toby Smith.
       In his ChangeWave Investing, www.changewave.com, he suggests, "As the top supplier of smart meters and meter infrastructure for the electricity industry, Itron is by far the best-positioned company for the smart grid build-out."
       "The build-out of smart grids employs technologies that deployed across an energy grid which allow greater efficiency and flexibility during energy distribution and transmission.
       "The cool thing about smart grids is that they are capable of isolating and better managing power outages and disruptions, integrating local power generating equipment, and avoiding electricity congestion or bottlenecks.
       "As the top supplier of smart meters and meter infrastructure for the electricity industry, Itron is by far the best-positioned company for the smart grid build-out.
       "The company also manufactures meters for the gas and water industries, and will benefit from increased spending as these networks made 'smarter.'
       "Notably, in our ChangeWave Alliance's recent infrastructure survey, among smart grid technologies smart meters and meter infrastructure are seen as experiencing the most growth (+36) during the next year.
       "Itron makes two types of meters. The older automatic meter reading (AMR) type send, but don't receive data. The newer 'smart' meters (advanced meter infrastructure, or AMI) are loaded with two-way communication capabilities to link utilities with their customers.
       "Obviously, the growth will come from increasing sales of AMI, which are purchased by large utilities around the United States as these power suppliers deploy the new units throughout their grids.
       "Utilities have been slow to adopt the new meters, but ITRI got a big boost recently after the U.S. Department of Energy (DOE) boosted the size of grants available under a program aimed at developing a 'smart' electric power grid nationwide.
       "The DOE increased the size of smart grid projects that are eligible for stimulus funds from $20 million to $200 million each. The agency also outlined the open standards for meters, grid networks and security that it intends to favor.
       "Unquestionably, ITRI is the big winner since larger utilities are expected to prefer the company's open standard architecture, scalability and superior product offerings.
       "Since Itron already complies with the DOE-supported standards, the company will surely receive a boost later this year and into 2010, when grants are awarded.
       "Itron's shares have climbed recently, but they could make a run to 2008 highs (above $100) as further details about smart grid initiatives are revealed and utilities pick up the pace and size of their orders for smart meters."

       Bernie Schaeffer selects stocks based on a combination of fundamental, technical and sentiment-based metrics.
       His research leads to long trading positions for his Schaeffer's Master Portfolio, www.schaeffersresearch.com, and short trades for his Schaeffer's Short Selling services. Here's a look at 4 of his latest ideas.
       "I initiated a long position in Netflix (Nasdaq: NFLX); its price action has been strong, with the stock up more than 35% year-to-date. The stock recently pulled back to support from key intraday trendlines that we follow, presenting a potential buying opportunity.
       "Short interest for NFLX is high, with more than 32% of the stock's float sold short. A continued rise in the shares' price could spark a short-covering rally. Upgrades are a possibility for NFLX, as only 4 of the 15 analysts covering the stock rate it a 'buy.'
       "I also initiated a long position in VMware (NYSE: VMW), which has gained more than 30% year-to-date. The stock has also pulled back to a key intraday trendline that we follow, presenting a potentially attractive entry point for a long position.
       "Short interest for VMW is high, with more than 17% of the stock's float sold short. A continued rise in the stock's price could spark a short-covering rally. Upgrades are a possibility for VMW, as only 3 of the 21 analysts covering the equity rate it a 'buy.'
       "In our Schaeffer's Short Selling advisory, I initiated a short position in Exxon Mobil (NYSE: XOM). The stock has underperformed the market during the past few months and is now trading right below potential resistance. With many analysts positioned bullishly, we could see downgrades push the shares lower.
       "I also initiated a short position in Apple (Nasdaq: AAPL). The stock has been strong recently, but is now rallying into a huge amount of call open interest at the 140 strike in its June series of options. Optimism heavily surrounds the equity as well, which leaves it vulnerable at this time."

       "Silvercorp Metals (NYSE: SVM) has gone through a rough spot," says Brien Lundin in Gold Newsletter, www.goldnewsletter.com. But, he adds, "An improving trend in commodity prices promises better days ahead."
       "The mining company served up a mixed bag of financial results recently when it reported both fourth quarter and annual results to March 31, 2009. The company has also given us a look ahead for fiscal 2010.
       "First, however, let's look at the financials. For Q4, sales declined 35% from a year ago to $17.4 million, primarily because of falling metals prices. But that was still a 14% improvement over Q3 performance.
       "Sales for the fiscal year also slipped, falling 23% to $83.5 million. Again, this was mainly because metals prices were in the tank - silver down 10%, lead 34% and zinc 53% from 2008 averages. These free-falling prices eventually lead to the temporary suspension of operations at three mines.
       "For the fiscal year, the company reported a loss of $16 million, compared with net income of $60 million a year ago.
       "Net income crossed the line into red numbers not because of plummeting metal prices, at least not directly. Instead, the company recorded an 'impairment charge' of $51 million on the write-down of its investment in New Pacific Metals to market value.
       "As expected, Silvercorp continued to invest heavily, spending nearly $50 million in capital expenditures. Meanwhile, an improving trend in commodity prices promises better days. In fact, Silvercorp plans to partially resume production from its other mines.
       "Silvercorp expects to generate cash flows from operations of $35 million to $40 million. Capital expenditures, meanwhile, are forecast to be considerably less in fiscal 2010, dropping nearly 70% to $16 million.
       "Silvercorp's share price has strengthened, along with silver, since late April. I expect that production improvements, along with stronger metals prices, will lead the share price even higher over the long term. Silvercorp is a buy."

       "Commodity prices have soared and the reflation theme is quickly taking hold," says Ron Rowland in his All Star Investor, www.allstarinvestor.com. Here, the advisor adds a new energy E&P stock to his buy list.
       "Crude oil rose 29% in the month of May, gold is challenging its old high near $1,000, and grain prices soared.
       "Who is buying all this stuff? A good guess would be someone with a huge pile of cash and a desire to diversify out of dollar-based financial assets ... such as China.
       "We already own positions in this sector such as Fidelity Select Natural Resources (FNARX), a fund that invests primarily in energy and materials, with about one-third of its holdings outside the U.S.
       "In our effort to continue to rebuild the portfolio, we are adding another energy pick: Continental Resources (NYSE: CLR), an explorer/producer of domestic oil & gas.
       "Continental Resources is particularly interesting because of its involvement in the Bakken shale formation of North Dakota, Montana and Saskatchewan.
       "Some geologists think Bakken has huge, Saudi-like deposits. Last year CLR shares traded over $80 before crashing back to $12. A jump this morning has CLR trading above $32 with very strong short-term momentum."

       "National Oilwell Varco (NYSE: NOV), a buy in our 'Wildcatters portfolio,' will see outsized benefits from improving conditions in the global oil market," says Elliott Gue in The Energy Strategist, www.energystrategist.com.
       "Rig technology is the crown jewel of National Oilwell's business; the unit builds key equipment used on land and offshore drilling rigs.
       "The unit is currently benefiting from the boom in deepwater drilling activity - one of the only drilling markets that continue to see growth despite the decline in commodity prices this year.
       "Equipment used on deepwater drilling rigs is far more complex and expensive than that used on land or shallow-water rigs.
       "As a result, selling equipment into the deepwater market carries far higher profit margins for National.
       "National Oilwell's stock price did decline slightly following its first quarter earnings release in late April. That decline was a great buying opportunity. Since then, the stock has rebounded and recaptured its post-earnings decline and then some.
       "One potential ongoing catalyst for National Oilwell is a series of major deepwater oil projects being managed by Brazil's national oil company, Petrobras.
       "Petrobras has announced several major discoveries over the past year and a half and should be releasing more data on the potential for these fields in coming months.
       "Petrobras will need at least 28 new ultra-deepwater rigs to develop all of the fields it's found, and a new ruling from the company's government regulator may force it to accelerate the development of these fields.
       "This would, of course, mean more business for National Oilwell, a key supplier of equipment for such rigs. National Oilwell Varco remains a buy."

       "Income investors have to be very careful when searching for yield; many high-yielding stocks have turned in disastrous performances over the last year," cautions Chuck Carlson.
In his The DRIP Investor, www.dripinvestor.com, he adds, "That's what makes Philip Morris International (NYSE: PM) so attractive. The issues stands as as one in which investors can be confident of a steady dividend stream."
       "The stock's current yield of 5% is especially attractive in this environment. And the dividend is taxed at the current preferential tax rate of just 15%, giving it an extra appeal relative to yields on ﬁxed-income investments. Furthermore, the dividend is safe.
       "Indeed, Philip Morris should earn at least $2.85 per share this year, more than enough to cover the current $2.16 per share dividend outlay. The stock is not without capital-gains potential as well.
       "Philip Morris is not likely to lead the market during robust rallies. However, the stock's defensive qualities should help these shares hold up well during market downturns.
       "Philip Morris International was spun off from Altria in March, 2008. The ﬁrm is a leading player in the international cigarette market. The company has seven of the world's top 15 brands, including Marlboro, the number one cigarette brand in the world.
       "The ﬁrm sells products in approximately 160 countries and controls an estimated 15.6% share of the total international cigarette market outside the U.S.
       "While cigarettes are not exactly a growth play in the U.S., overseas markets still have decent growth potential. Philip Morris is a major player in a variety of emerging markets, including Asia and Latin America, where shipment volumes increased in the first quarter.
       "The firm has felt the problems in Europe, where shipment volumes fell nearly 4% in the ﬁrst quarter. Overall, shipment volumes were ﬂat in the ﬁrst quarter, not a bad showing given the state of global economies.
       "Revenue fell 5.5% in the ﬁrst quarter to $5.6 billion. Revenues were hurt by the strong dollar. Excluding currency, revenue jumped 6%. Excluding currency, pershare earnings jumped nearly 13% in the quarter.
       "For 2009 overall, the company has forecast per-share earnings of $2.85 to $3. The consensus analysts' estimate for the year is $3.03 per share. Philip Morris has beaten the consensus earnings estimate in each of the last four quarters.
       "Thus, it's possible, especially if the dollar continues to weaken, that the company could beat $3.03 this year. For 2010, Wall Street is expecting profits of $3.43 per share. Proﬁt growth in 2010 should lead to a dividend increase.
       "At a time when 'high yield' often means 'high risk,' Philip Morris stands out as one company where income investors can be conﬁdent of a steady dividend stream. For ballast for a portfolio, it's tough to beat this stock.
       "Investors can nibble on these shares at current prices and be more aggressive on dips below $40. DRIP investors take note that the DRIP allows any investor to buy shares directly, the ﬁrst share and every share."

       Despite a 46% gain since adding iShares MSCI Brazil (NYSE: EWZ) to his porffolio, global expert Keith Fitz-Gerald still sees upside potential. Here's the latest from Money Map Reporter, www.moneymappress.com.
       "History tells us that the best gains come to those who have the courage to buy undervalued companies in the face of extreme pessimism - and that sounds a lot like right now. So while we may not be at the very bottom, we are nonetheless pretty darn close.
       "In times like these, when the market looks like it's close to a bottom and global economic conditions appear to be easing, we believe the best strategy is to have a core position of solid companies with global growth opportunities, good cash flow, and services that will be necessary coming out of the current global economic situation.
       "One such position is iShares MSCI Brazil. As long as the current trend toward easing credit markets continues, I believe we'll continue to see strength in in this ETF, as its holdings are tied to global growth.
       "Brazil is one of the best-positioned countries to prosper from a rebounding global economy because of her energy, resources, and financial sectors. Demand from China alone could dramatically improve the balance sheets of Brazilian companies.
       "Add to that the recent deepwater oil field discoveries by PetroBras which represent 27.46% of EWZ's holdings, and you can see why we like the prospects for Brazil. In addition, we would note that the fund is currently yielding 5.71%."

       "After enduring one of the worst slumps on record, we're beginning to see a rebound in all major commodities market," says Lee Lowell, adding "But one commodity stands out in particular - natural gas."
       In Xcelerated Profits Report, www.smartprofitsreport.com, he explains, "This could represent the best buying opportunity in several years." Here's the advisor's recent review of the United States Natural Gas (NYSE: UNG), an exchange-traded fund.
       "As it so often does, it's no surprise to see the energy market leading commodities higher over the past few weeks - specifically, crude oil and natural gas.
       "This was the case when I was an option market maker in the oil and gas trading pits on the New York Mercantile Exchange (NYMEX) for many years. I'm very familiar with how these markets work and what moves them - and now is the time to buy natural gas.
       "What we have here is a once-in-a-blue-moon buying opportunity. Having topped out at $14 per MMB/tu (British thermal units) last summer, natural gas then crumbled to $3.25 per MMB/tu on April 30, as the credit crisis and recession took hold and demand tanked.
       "Natural gas is still trading near historic lows after its 2008 meltdown. But in recent weeks, the market seems to have bottomed out and has established a good support area that makes for a great buying opportunity.
       "With the bears prowling for so long - and all bets seeming to pay off - finding a bull in the natural gas market has been like trying to find a needle in the proverbial haystack.
       "The market essentially got hit with a double-whammy. The financial crisis and recession blasted demand. And as underground storage supplies began to build up, speculators fled the market.
       "Given that this situation hasn't changed too much, you may wonder why we're bullish when everyone else is bearish.
       "Simply, put, history has shown that some of the best times to buy are when everyone else is selling. And even though the price wouldn't ordinarily head higher until the supply-demand equation resolves itself to a more balanced point, there's a difference in this case.
       "The market has known about the excess supply for ages - and it's reacted by sending prices down to bargain-basement levels.
       "But it's fallen so far that it can't logically fall much further without it making more sense for natural gas drillers to actually shut down production, as it costs more to extract the gas than they can sell it.
       "And with the price recently poking back up above the $4 level, it's proof that the market has priced this in. Simply put, we've come to a point technically where it's a good time to go long.
       "As for the buildup of natural gas supplies, they will get drawn down as we head into the summer - a season that features air conditioners cranked up and hurricane season in the Southeast and Gulf of Mexico.
       "Many natural gas companies have also reduced the number of drilling rigs, which will reduce supplies and underpin the price. So we're going to initiate a bullish position in natural gas by using the United States Natural Gas Fund - the ETF that represents the natural gas market.
       "The UNG fund is a pure play on natural gas that gives you direct exposure to the market. It tracks the price performance of natural gas by investing in the commodity's 'front-month' futures contract (i.e. the closest one to expiration) that trades on the NYMEX.
       "There are no other influences on its moves, other than those futures. As an ETF, UNG trades just like a stock on the NYSE and is available to buy and sell at any time.
       "In addition, gaining broad exposure to the natural gas market through just one investment boosts your diversity while also adding a layer of risk protection. And by investing in an ETF, rather than a mutual fund, your costs are lower."

       Cinemark (NYSE: CNK), a leading owner of movie theaters, is a recent buy candidate from Leo Fasciocco, whose Ticker Tape Digest, www.tickertapedigest.com, seeks stocks poised for technical breakouts.
       "CNK an excellent intermediate-term play due to the strong profit outlook. The stock came public in 2007 at $20. It fell during the bear market. The stock formed a bottom, rallied and is now in position to breakout to the upside.
       "With annual revenues of $1.8 billion, Cinemark is the third-largest motion picture exhibitor in the United States, operating 4,568 screens in 37 states and 12 Latin American countries.
       "The key breakpoint is at $11.03. The stock's momentum indicator is slightly bullish; most important the accumulation - distribution line is in a strong up trend and has already broken out to the upside.
       "This year, analysts forecast a 41% surge in net to 68 cents a share from 48 cents a year ago. The highest estimate on the Street is at 81 cents a share indicating some see potential for a big year.
       "The stock sells with a price-earnings ratio of just 15. That is well below the earnings growth rate of 41%. So, the stock is very appealing to value-growth investors.
       "CNK has plenty of investor appeal, a low valuation, good dividend yield and strong earnings prospects. We suggest entry on a breakout over $11.10. From there, we would be targeting the stock for a move to 15 within the next few months."

       "Google (Nasdaq: GOOG) remains the dominant search engine on the web," notes Paul Tracy. In his StreetAuthority Market Advisor, www.streetauthority.com, he views the stock as a solid buy for growth investors.
       "In economic downturns, one of the first costs most companies cut is advertising. Not surprisingly, over the past year, most companies have slashed their advertising budgets in response to the severe economic downturn.
       "But online ad spending has remained remarkably resilient. GOOG's system targets specific ads based on what users type into their search box, geographic location and other factors.
       "Google's main competitive advantage lies in its dominance of the search market, as well as the scale and reach of its advertising network. The firm has a near two-thirds share of the online search market.
       "The firm is consistently improving upon its sophisticated, proprietary systems so that it can more effectively deliver ads to users who are most likely to click through to advertisers' websites.
       "GOOG trades at 16 times projected earnings and has a long-term growth rate of close to +19%. It's unusual to find a market leader like GOOG trading at a discount to its long-term growth rate.
       "My staff and I believe that GOOG could trade at as much as 1.5 times its long term growth rate, which would equate to a P/E of about 29 times. On that basis, the stock could trade as high as $600.
       "In addition, Google has no debt and nearly $18 billion in cash. This strong financial position gives the company the ability to make strategic acquisitions in an environment where valuation levels for many Internet companies remain depressed.
       "Google 's dominant position in the fast-growing Internet search business make the stock a solid 'Buy' for growth-oriented investors."

       With President Obama highlighting the national importance of cyber security, we turn to technology specialist Gregg Early to find the best opportunities in the sector.
       Here, the editor of Personal Finance, www.pfnewsletter.com, reviews a trio of stocks that are poised to benefit from growth in this area: McAfee (NYSE: MFE), Versar (AS: VSR) and Unisys (NYSE: UIS).
       "In total, McAfee gets about 40% of its revenue from sales of such Internet security products to consumers. This business typically offers solid profit margins and growth potential.
       "More interesting from a growth standpoint is McAfee's enterprise service and software businesses, which together account for the remaining 60% of revenue. For corporations, computer and network security isn't a luxury but a necessity.
       "Industry experts estimate that 35 million data records were breached in 2007; that figure soared to 285 million last year. These threats can bring a company's entire information technology systems down and result in lost revenue and data.
       "As a result, even as companies are cutting IT budgets to save money, they're maintaining spending on network security products and services. McAfee is one of the only firms to offer a comprehensive line of security solutions.
       "The product line includes products designed to protect data storage facilities, reduce spam, and even monitor a company's network and users in real-time to identify internal and external security threats. McAfee also provides consulting and ongoing network security maintenance services.
       "McAfee recently guided analysts' earnings estimates for the second quarter and full year 2009 higher. And it's trading at just 15 times forward earnings. The stock is a recent addition to to the growth section of our model portfolio.
       "Versar is an integrated security solutions company that provides both physical and cyber security for public and private clients.
       "One of its key clients is the Department of Homeland Security (DHS), which confers two advantages. First, DHS has extremely deep pockets and a broad mandate.
       "Versar has plenty of headroom to win more DHS contracts. Second, the company has the capacity to strengthen its specialties and be a more attractive partner to federal government clients beyond DHS.
       "Other security-focused agencies such as the Dept. of Energy, the Dept. of the Interior and the Dept. of Defense will look more favorably on a company doing such extensive work with another agency.
       "Unisys has been around in one form or another for 133 years, so it's no newcomer to the tech space. Recently the company has emphasized the IT segment of its business, expanding its enterprise-level security operation.
       "Unisys has carved out an international niche, earning a solid reputation in the process. Once a hardware-driven firm, Unisys has evolved into a provider of integrated IT solutions in recent years.
       "Its enterprise server lineup, still the industry standard, is a solid platform for its growing role in providing broad expertise to large businesses and governments.
       "These entities need secure and productive responses to the challenges of managing enormous amounts of data, and Unisys offers end-to-end answers."

       In The Cabot Benjamin Graham Value Letter, www.cabot.net, editor J. Royden Ward searches for stocks that meet the investing criteria of the legendary Ben Graham, known as the father of value investing.
       Here, the advisor takes a look at Overseas Shipholding Group (NYSE: OSG), a crude oil and energy shipping operation.
       "Overseas Shipholding has 20 vessels either owned or leased and derives 25% of revenues from grain, coal, and iron ore.
       "The company is aggressively adding vessels to its ﬂeet either by acquisition or new construction. Older vessels are being sold to build signiﬁcant cash ($20 per share) to pay for new vessels and to pay down debt.
       "The shipping industry is currently ﬂooded with new and old vessels, but the overcapacity will change when all single-hull tankers are phased out by the end of 2010.
       "OSG is undervalued at 1.7 times current EPS, although this is misleading because the P/E becomes 10.4 when based on forward next 12-month earnings. OSG shares are clearly oversold based upon the company's huge cash position and explosive earning power.
       "The company's earnings per share increased 26% during the ﬁ rst quarter of 2009 with most of the gain from the sale of older vessels. Fewer vessel sales in the next few quarters will cause EPS to decline sharply.
       "Shipping rates declined by 50% from a year ago for tankers, caused by slower worldwide demand and an increased supply of ships. We expect an 80% drop in EPS during the next 12-month period followed by a rapid rebound in future years.
       "The balance sheet is very strong with a whopping $20 per share cash balance. The dividend is secure and provides an attractive 5.7% yield. OSG shares will likely climb to our 'minimum sell price' of $75.41 within two to three years."

       "We are placing a bet against the U.S. dollar through the Rydex Weakening Dollar 2x Strategy H (RYWBX) mutual fund," says Nicholas Vardy. Here's the latest from Global Bull Market Alert, www.globalbullmarketalert.com.
       "After soaring last year as a 'safe haven' asset, the U.S. dollar is regaining its status as the whipping boy of global currencies.
       "With skepticism surrounding the Obama Administration's exorbitant spending plans increasing, speculation is growing that the United States may eventually lose its AAA credit rating.
       "As the United States' biggest single creditor, China is becoming increasingly concerned about the United States 'printing money.'
       "The threat of a U.S. credit downgrade came to the forefront of attention last week after Standard & Poor's announced that the United Kingdom's AAA rating is under scrutiny.
       "Ironically, the knock on effect on the U.S currency was even worse than the effect on the British pound sterling.
       "Although a downgrade of the United States' credit rating won't happen for at least for another few years, investors are starting to price in that risk.
       "Momentum is building against the U.S. dollar, with the dollar index falling below the 80.00 level to 79.81, its lowest level since the end of 2008.
       "According to data from the Commodity Futures Trading Commission, currency speculators increased their short positions on U.S. dollars last week by a whopping 31%.
       "The last time speculators were short U.S. dollars was in early February. So buy the Rydex Weakening Dollar 2x Strategy H and place your stop at $16.50."
       Editor's Note: Bull & Bear readers can download a Special FREE Report, Income Investing: Dividends and yield for safety, balance and high returns from TheStockAdvisors.com.