Sunday, June 21, 2009

6/21 Home Depot HD is 30 Years Old

The following is brought to you by Intellivest Securities Research, Inc. The following is not intended as advertising by a broker-dealer and is not a research report.

Happy Father's Day. A read of Sun's 6/21 AJC, Sunday 6/21 NY Times, Barron 6/22/09, Securities Industry News 6/15, Investment News 6/15 -19, Institutional Investor June issue, CFO June issue, BusinessWeek Small Biz June/July issue, US News & World Report July issue and Newsweek 6/22 issue yielded the following stories about Dow Jones 30 component companies:

AJC today has a favorable story about HD Home Depot, its 30 year history, and its future prospects.

BAR @ p21 talks about a competitor of JNJ Johnson & Johnson's Stryker, a specialist in orthopedic implants. JNJ is a big player in the $38 billlion orthpedic-implant market.

WMT is charted by BARs noting that it will be regulated as if it is a bank under the new financial regulations.

MSFT is discussed in an article at Bar p28 in an article with new Yahoo CEO Carol Bartz who is said to be getting Yahoo ready to be sold to MSFT. MSFT is said to be a good buy because it has a large product cycle, piles of cash and a below-market multiple acccord to Eric Savitz at BAR p 34.

Bary Motyl Chief Inv. Off. of Templeton Global Equity Group liked CSCO Cisco @ p41 which is also the subject of another story about how it is installing 3,000 high def screen in Dallas Cowboys new stadium with state of the art technology created by CSCO and T AT&T.

JNJ Johnson & Johnson is one of the rare health care companies that is cheap in a story entitled "J&J is a Bargain" @ BAR p39. Same page ranks XOM ExxonMobil as the top S&P 500 company for the first quarter for stock buybacks of its own shares.

Securities Industry news and Investment News both have lead stories about BlackRkock acquiring Barclays to result in the world's top money manger with $2.7 trillion under management. Merrill Lynch has a distribution system with BlackRock and Merrill's owner BAC Bank of Am. is part owner of BlackRock.

June issue of Inst'l Investor II has a story about standard Chartered's acquisition to buy the Asian businss of JPM Morgan Cazenove. At p54, II has an article about the business of prime brokers and how JPMorgan is now a leader in this shrinking field even though a year ago it wasn't even in the business of traditional prime brokerage prior to its takeover of Bear. BusinessWeek Small Biz June/July issue has a story about how JPM JPMorgan Chase and other big banks are suspending credit lines to businesses. JPM is also discussed in the cover story of the 6/22 Newsweek at p 47 where it is stated that JPMorgan is among a group of big banks that are forming a new lobby to fight contgrols on over-the-counter derivatives.

June issue of CFO has a story about the controversy over the high pay of CEOs of public companies and AXP American Express is singled out as its CEO being in the top five of the 29 TARP bailout receivers who received the largest CEO compensation.

US News & World Report July issue in an article at p12 entitled "Digging for gold in a Recession" states that DD Dupont invested nylon during the Great Depression.

The Dow closed Friday at 8539.73 down 15.87 or down .19%. Of the Dow 14 gained value and 16 lost. The Dow was down 3% for the week.

Here is yesterday's blog:

A read of Sat. 6/20/09 print editions of: Wall Street Journal, New York Times, Atlanta Journal Constitution and 6/29/09 (out yesterday) BusinessWeek and June 2009 issue of Traders Magazine yielded the following stories about Dow Jones 30 component companies:

The front page story on pA1 of NYTimes reveals that major retailers including WMT Wal-Mart and HD Home Depot are reducing their product lines in order to respond to the recession and habits of shoppers who are in a hurry.

BA Bank of Am. filed an 8K on 6/19 announcing the resignation of two Board of Dir. members, Adm. Joseph Prueher and Gen. Tommy Franks effective 6/17/09. This was also reported at pA11 of today's AJC and NYT at pB2 which notes that in the last two months seven directors have left of 19 members.

XOM Exxon Mobil filed an 8K on 6/19 saying it will take write offs for the $507.5 million punitive damages award that was upheld on 6/15 by the US 9th Circ. Court of Appeals resulting from the Exxon Valdex spill, the worst oil spill ever. This was also the subject of a story at PA11 of todays AJC.

AJC at PA11 & NYT at pB12 reports that JPM JPM Morgan will take a $1.1 billion charge against its second quarter earning following its early repayment of $25 billion TARP money.

UTX's VP Corp. Stragey and Planning filed a Form 4 on 6/19 because he exercised some stock option and sold some shares.

WSJ at pB1 notes WMT Wal-Mart off 1%, KO Coke down 1.5% and Chevron CVX down .5% in yesterday's Dow decline.

BusinessWeek at p8 reports on BA Boeing only getting 2 orders at the Paris Air Show.

BW at p44 ahs a story entitled "Microsfot vs The PC Makers" that describe the battle over pricing of the new Windows 7 in the midst of falling hardware prices. Windows 7 is scheduled to be introduced in Oct. and MSFT is counting on the new oeprating system to end years of complaints about its predecessor Windows Vista. The cost will be $50 for a entry-level version which is triple the price for the cheapest version of Windows available now. The story mentions MSFT's competition Intel INTC, HPQ Hewlett-Packard and dell.

BW at p63 has an article about "the unstoppable iPhone" and says that you will have to pay a two year contract with T AT&T. Story also mentions CSCO Cisco's recent purchase of Pure digital for $590 million which makes the Flip camera - well, now the iPhone has a new feature that makes it as easy as a Flip camera to take, edit and upload videos to YouTube.

Traders magazine a p49 has a story about Merrill Lynch's former equities electronic trading group won out over Bank of Am's (BAC) trading counterpart int he 9/15 takeover.

The current divisor for the Dow found at today's page B4 (usually at pC4) of The Wall St. Jrnl is
.132319125 unchanged.

Friday's Dow numerator was 1129.97 down 2.09 from Thursday's Dow numerator which was 1132.06. This is the sum of all 30 closing prices. A short cut to the Dow numerator is to multiply the closing Dow by the Divisor.

Now, if you divide the Dow decrease of 2.09 in the Dow numerator by the divisor you get 15.87, the increase in Friday's Dow.

The average closing price of Friday's Dow Jones was 37.67 down .06 from Friday's average closing price of $37.73. The median closing price of Friday's Dow Jones is $30.84.

The highest closing price Friday again was IBM at IBM $106.31 -0.02 and the lowest closing price Friday again was AA Alcoa at AA 11.03 up .25.

The lowest volume Friday was MMM $59.37 up 0.06 up 0.1% volume of 5,825,920 shares NYSE and the highest volume was BAC Bank of America $13.24 up 0.34 up 2.64% volume of 360,195,310 shares.

If Friday morning before the market opened you had purchased $100 of each of the Dow 30 shares (assuming you could buy fractional shares and assuming no transaction costs) and sold at the close you would have lost $80. ($113,190 - $113,010).

Friday's Closing Dow closing numbers:

Symb/Last/Change/% Change/Vol./Market

T $24.04 -0.09 0.37% 42,104,336 NYSE
AA $11 +0.22 2.04% 33,383,259 NYSE
AXP $24.64 +0.54 2.24% 16,954,161 NYSE
BAC $13.22 +0.32 2.48% 420,806,557 NYSE
BA $48.44 -0.52 1.06% 6,462,441 NYSE
CAT $33.65 -0.43 1.26% 14,450,045 NYSE
CVX $68.06 -0.37 0.54% 16,224,577 NYSE
CSCO $18.92 -0.07 0.37% 69,358,364 NASDAQ-GS
KO $48.81 -0.74 1.49% 15,246,634 NYSE
DIS $23.53 -0.19 0.8% 13,710,945 NYSE
DD $24.97 -0.20 0.79% 10,260,172 NYSE
XOM $71.05 -0.39 0.55% 40,911,116 NYSE
GE $12.1 +0.13 1.09% 123,802,133 NYSE
HPQ $38.35 +0.80 2.13% 25,772,405 NYSE
HD $23.52 +0.17 0.73% 15,108,438 NYSE
INTC $16.01 +0.14 0.88% 70,948,963 NASDAQ-GS
IBM $105.89 -0.44 0.41% 12,999,216 NYSE
JPM $35 +0.83 2.43% 73,485,813 NYSE
JNJ $56.09 +0.30 0.54% 18,910,475 NYSE
KFT $25.41 -0.44 1.7% 12,685,552 NYSE
MCD $58.17 +0.01 0.02% 9,298,677 NYSE
MRK $25.91 +0.26 1.01% 26,510,460 NYSE
MSFT $24.07 +0.57 2.43% 114,596,349 NASDAQ-GS
PFE $15 +0.08 0.54% 84,051,864 NYSE
PG $50.64 -0.53 1.04% 18,991,232 NYSE
MMM $59.37 +0.06 0.1% 5,837,852 NYSE
TRV $42.08 -0.45 1.06% 6,450,525 NYSE
UTX $54.2 -0.73 1.33% 8,351,791 NYSE
VZ $29.66 -0.43 1.43% 20,762,645 NYSE
WMT $48.17 -0.51 1.05% 23,297,066 NYSE

A read of yesterday's (Friday 6/19/09) print editions of: Wall Street Journal, New York Times, USA Today, Investor's Business Daily, Financial Times and Atlanta Journal Constitution yielded the following stories about Dow Jones 30 component companies:

BA Boeing is the subject of a story at WSJ pB2 entitled "Dreamliner Still Far From Reality" that says the 787 maiden flight will occur by June 30, but BA is still under pressure to complete an ambitious schedule of test flights and government certifications.

Financial Times FT at p15 in a story entitled, "Bombardier under fire over new jet finance" said that BA Boeing and Airbus, the duopoly makers of big jets have joined forces to oppose plans by Canada's Bombardier to seek more liberal terms for export credit financing for its new range of short haul aircraft, mainly its CSeries range of 110 to 130 seat aircraft. BA objects to the categorization of these aircraft as regional jets rather than large aircraft under Economic Cooperation Development rules for export credit finance known as the aircraft sector udnerstanding.

At WSJ pB3 MSFT Microsoft is said to have voiced support for legislation that sets regulations for consumers' Internet privacy, although MSFT remains at odds with public interest groups about how proposed legislation to protect consumers' online information should be drafted.

MSFT in a story at pA4 of IBD Investor's Bus. Daily entitled, "Microsoft Set to Shell out for Search" saying MSFT will invest up to 10% of its operating income in its Internet search business for up to five years as its Bling search engine starts to gain ground with Web surfer. On a personal note, Bling competes with the Firefox browser that was coinvented by my nephew Blake Ross. A smilar story ran in today's USA Today a p1B.

T ATT is mentioned in a WSJ story at pB3 about the FCC reviewing exclusive deals that lock up hot cellphones such as T AT&T's multiyear deal to offer Apple Inc.'s iPhone. T AT&T is also mentioned at WSJ pB4 in a story about how smart phones such as the iPhone are being used as Internet modems for their computers, a function that many phone owners want but US mobile phone carriers have been reluctant to allow.

At WSJ pB4 a story entitled "Alcatel, H-P Agree to Ally" described HPQ Hewlett-Packard's agreement with Alcatel-Lucent for a 10 year partnership to develop and market communications and computing products, as both firms look for new areas of growth. MSFT Microsoft is also mentioned because last month HPQ and MSFT teamed up to offer software, heardware and services that combine phone, video and email functions, an offering that rivals a CSCO Cisco offering. A similar story is at todays IBD Investor's Business Daily at pA2.

At WSJ pB6 in a story about Smucker it is noted that Smucker bought PG Procter & Gamble's Folgers coffee business in November for $2.65 billion.

WSJ's lead story at pA1 says that dozens of companies such as Target and Harley-Davidson that aren't banks but sell loans and other financial products will be forced to register as bank holding companies under the new oversight bill which would put these "non banks" in the same category as JPM JP Morgan and BAC Bank of Am.

JPM and BAC are also mentioned at WSJ pC1 as leading yesterday's Dow financial components by each increasing by more than 4%. A related story at WSJ pC5 says that BAC and JPM helped the Dow break a three day losing streak yesterday. At WSJ pC2 it says that Merrill Lynch banker William Rifkin has defected to rival JPM where he will serve as vice chair of its mergers and acquisitions group. At WSJ pC3 there is a story about the different levels of oversight by the Fed that will be forthcoming under new legislation - BAC Bank of Am will be a Tier 1 financial holding company as would GE.

BAC Bank of America's Ken Lewis is mentioned at pA12 of WSJ as being one of the CEOs of bailed-out firms that flew to resorts on bank jets. His trip cost $5,300 and was in Dec. 2008 to Reynolds Plantation here in Georgia.

It was a BA Boeing 777 that the pilot who died in flight was commanding according to a story at WSJ A5.

BA Boeing is mentioned at NYTimes pB6 as having inked a $153 million order at the Paris Air Show with MC Aviation Partners, a leasing subsidiary of Mitsubishi for two 737-800s. This was reported in yesterday's Daily Blog.

CAT Caterpillar, which hasn't been in the news for a while, is mentioned at WSJ pB7 as losing 2.1% to $34.08 yesterday after it said retail sales of its machines had fallen at a faster pace in May which resulted in its shares being the biggest drag in yesterday's Dow performance. A similar statement was made about CAT at P4B of today's USA Today.

IBD at PA4 talks about INTC Inel's efforts to spread viral marketing.

IBD at pB1 has a story about square box stock market analysis which analyzes a pattern of trading for a stock that is shaped like a box. It profiles HD Home Depot as trading in this fashion in the early 1980's.

USA Today at P4B said health care companies helped yesterday's Dow specifically noting MRK Merck's increase of 3.65% to close at 25.65.

The most recent SEC filing by a Dow 30 company was yesterday's 6/18 8K filing by CAT Caterpillar that provided supplemental financial information regarding CAT's deliveries to users of its Machinery and Engines line of business which supplemented prior financial information filed with the SEC. Also on 6/18 JPM Morgan filed two free writing supplements regarding issuance of notes linked to their indices.

Here are the latest SEC filings other than ownership filings and, except for certain cases, I do not include third party shareholder proposals:

Symbol & Co. Name/Date of Filing/Form Filed Comments

T AT&T 5/11/09 8K
AA Alcoa 5/13/09 8K
AXP 6/17/08 8K Announcing repurchase of $3.39 of preferred shares from
the U.S. as part of TARP bailout
BAC Bank of Am 6/16/09 24B2 Prospectus Prelim, filing for
leverage return notes, a pricing supp.
BA Boeing 6/9/09 8K announcing election of David Calhoun
a director
CAT Cateriller 6/18/09 8K Supp. fin. info re: deliveries to
certain customers
CSCO Cisco 6/2/08 S8 Regis. of securities to employees
KO Coke 6/10/09 8K announcing personnel changes
DIS Disney 5/7/09 S8
DD DuPont 5/7/09 8K
XOM Exxon 5/5/09 10Q
GE 6/2 8K Changes to board of directors
HPQ Hewlett-Pack 6/5/09 10Q
HD Home Depot 6/4/09 10Q
INTC Intel 5/22/09 8K
IBM 6/7/09 Proxy by Shareholde
JPM JPMorgan 6/8/09 Freewriting Prospectus re: Notes linked to
a JPM index
JNJ Johnson 5/5/09 10Q
KFT Kraft 6/7/09 8K CEO Irene Rosenfeld was on a panel
MCD McDonalds 6/11/09 11K Annual report of employee stock
purchase plan
MRK Merck 6/17/09 Proxy re: Merger w/Schering-Plough
MSFT Microsfot 5/15/09 8K
PFE Pfizer 6/17/09 S4 Effective re: 6/17 Proxy re merger
with Wyeth
PG Procter Gam 6/10/09 8K re: Robert McDonald becoming new CEO
MMM 3M 5/13/09 8K
TRV Travelers 6/2/09 8K re: sale of $500 million of secs.
UTX United Tech 10Q
VZ Verizon Free Writing Prospectus for Direct
Investment Purchase shareholder prog.
WMT Wal-Mart 6/5/09 10Q