Tuesday, June 30, 2009

6/30 Tues a.m. J&J wins 41.67 Billion Lawsuit

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.

The Dow closed Monday at 8529.38 up 90.99 or 1.08% from Friday's close of 8438.39. 29of the Dow 30 gained and only AA Alcoa declined.

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

WSJ @pB1, AJC @pA6 reports that a federal jury has ordered Abbott Laboratories to pay $1.67 billion to J&J Johnson & Johnson in a patent infringement suit because Abbott's rheumatoid arthritis therapy Humira infringed a patent that J&J's Centocor Ortho Biotech unit held for rival treatment Remicade. The patent is co-owned with NYU. The WSJ story reminds us that a previous large patent verdict was overturned in 2007 when MSFT Microsoft was ordered to pay Alcatel-Lucent $1.52 billion for violating digital-music technology but MSFT ultimately prevailed.

WSJ @pB4 says MCD McDonald's plans to expand into India by opening another 40 restaurants bringing the total Indian outlets to 200.

WSJ @pB4 has a story about French retailer Carrefour SA and it says that it is the world's second largest retailer by sales after WMT Wal-Mart.

WSJ @pB5 talks about how HPQ Hewlett-Packard and other computer makers have begun marketing low-end portables called netbooks through cellular providers - this in a story about Dell developing a pocket-sized device for tapping into the Internet.

WSJ @pB5 is in a story entitled "Microsoft Shops Web Agency to Advertising Holding Firms" saying MSFT has approached ad agencies to gauge their interest in buying Razorfish, a digital agency owned by MSFT.

WSJ @pB5 in a story says Comcast plans to begin offering wireless-broadband bands. Also, it is mentioned that T AT&T and VZ Verison will be building wrieless-broadband networks.

WSJ @pC1 says the Dow's strong finish yesterday was partially due to XOM Exxon Mobil's increase of 2.2% to $70.58. Same page it is metioned that JPM JPMorgan and BAC Bank of America are getting back to basics causing securities firms to have a strong quarter - the best quarter since the bailout. XOM Exxon and CVX Chevron are also mentioned as having a good day yesterday in the Large Stock Focus WSJ@pC5 that also says AA Alcoa tumbled after an analyst downgraded it and HPQ Hewlett-Packard rose 1.37 or 3.6% Alcoa is charted on the same page under the heading "And the Bad News". NYT @pB3 also cites XOM Exxon and MSFT Microsoft's good performance on the Dow yesterday noting that Microsoft rose 2.2% because Deutsche Bank raised its price estimate for them.

A JPM JPM Morgan Chase report on the drop of US interest rate and equity trading resulting in less volatility is the subject of a story @p26 of the Fin Times.

Fin Times @p28 mentions CVX Chevron and XOM Exxon Mobil's strong market performance yesterday while noting AA dropped due to analysts at FBR downgrading AA and also said MSFT gained.

Investor's Bus. daily @pA4 has a story "Chipmakers' Claims of Long Battery Life Pass the Sniff Test?" that talks about how companies are for the first time advertising battery life directly to the consumer noting that a recent Bust Buy print ad states that a HPQ Hewlett-Packard Compaq notebook computer with Intel Celeron processor gets up to 2 hours and 45 minutes of battery life on a charge. IBM and INTC Intel are mentioned as an example of chipmakers who are trying to make their chips more power efficient.

NYTimes @pB1 has a story about how a private banker moved funds illegally from clients and notes he was formerly with JPM JPM Morgan Chase.

USA Today @p1B says former Treasury Secretary Henry Paulson will testify next month before a House committee that is probing whether he pressured BAC Bank of Am. to acquire Merrill Lynch in a deal that cost taxpayers $20 billion.

The current divisor for the Dow found at today's page C4 of The Wall St. Jrnl is
.132319125 unchanged.

Monday's Dow numerator was 1128.60 up 12.04 from Friday's numerator of 1116.56. 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 increase of 12.04 in the Dow numerator by the divisor you get 90.99, the increase in Monday's Dow.

The average closing price of Monday's Dow Jones was $37.62 up .40 from Friday's average closing price of $37.22. The median closing price of Monday's Dow Jones was $32.98.

The highest closing price Mondayday again was IBM $105.83 +0.15 0.14% 4,549,636 NYSE and the lowest closing price Monday again was AA Alcoa $10.44 -0.32 2.97%.

The lowest volume Monday was MMM $59.96 +0.70 1.18% vol: 3,174,689 NYSE and the highest volume was BAC Bank of Am BAC $13.19 +0.44 3.45% vol: 326,692,941.

If Monday 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 made $200 $300 ($112,860 - $111,660).

Monday's Closing Dow closing numbers:

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

T $25.22 +0.40 1.61% 22,544,805 NYSE
AA $10.44 -0.32 2.97% 30,561,328 NYSE
AXP $24 +0.24 1.01% 13,119,407 NYSE
BAC $13.19 +0.44 3.45% 326,692,941 NYSE
BA $42.65 +0.77 1.84% 5,486,499 NYSE
CAT $34.74 +0.18 0.52% 6,732,317 NYSE
CVX $66.88 +0.93 1.41% 10,184,487 NYSE
CSCO $18.99 +0.08 0.42% 48,358,379 NASDAQ-GS
KO $48.29 +0.16 0.33% 8,711,940 NYSE
DIS $23.66 +0.23 0.98% 7,643,513 NYSE
DD $26.01 +0.63 2.48% 7,163,105 NYSE
XOM $70.58 +1.53 2.22% 24,130,988 NYSE
GE $11.76 +0.01 0.09% 52,121,092 NYSE
HPQ $38.98 +1.37 3.64% 24,599,940 NYSE
HD $23.87 +0.26 1.1% 12,202,923 NYSE
INTC $16.38 +0.09 0.55% 58,912,518 NASDAQ-GS
IBM $105.83 +0.15 0.14% 4,549,636 NYSE
JPM $34.6 +0.15 0.44% 34,057,729 NYSE
JNJ $56.96 +0.36 0.64% 12,406,986 NYSE
KFT $25.58 +0.02 0.08% 6,620,083 NYSE
MCD $57.23 +0.23 0.4% 5,652,846 NYSE
MRK $27.85 +0.85 3.15% 21,826,443 NYSE
MSFT $23.86 +0.51 2.18% 61,832,291 NASDAQ-GS
PFE $15.26 +0.07 0.46% 31,515,735 NYSE
PG $52.23 +0.48 0.93% 8,275,767 NYSE
MMM $59.96 +0.70 1.18% 3,174,689 NYSE
TRV $41.01 +0.13 0.32% 5,603,003 NYSE
UTX $52.47 +0.92 1.78% 5,075,580 NYSE
VZ $31.36 +0.37 1.19% 10,325,901 NYSE
WMT $48.76 +0.13 0.27% 16,125,003 NYSE

The following is from yesterday's Blog except that the SEC filings were updated last night. A read of Monday 6/29/09 print editions of: Wall Street Journal, New York Times, Atlanta Journal Constitution, Financial Times, Investor's Business Daily and USA Today and recent weekly periodicals such as Barron's and Atlanta Business Chronicle yielded the following stories about Dow Jones 30 component companies:

WSJ @pB1 has a story about BA Boeing being under pressure to make concessions to its buyers of its now delayed 787 Dreamliner. Sat.'s NYTimes @ pB5 and WSJ 6/27-28 @pB5 have stories that Quantas withdrew or deferred orders for 30 of Boeing's 787 Dreamliners. Ny Times 6/28 @p8 said BA shares dropped 13.5% last week, the worst in the Dow due to the 787 delay.

WSJ @pB2 in a story about Justice Dept. seeking more information on the proposed acquisition of Sun Microsystems Inc. by Oracle mentioned that earlier Sun and tried to do a deal with IBM that didn't happen. IBM was also mentioned in a story at NYT pB1 6/26 about bar codes being replaced by RFID technology which noted that IBM invented bar coding in 1970. WSJ 6/27 @B5 said IBM lost its motion for a prelminary injunction seeking to stop a former executive from working at rival Dell. IBM is also the subject of a Forbes 7/13 article @p40 about how an IBM researcher's algorithm could be used to analyze information without reading it thus protecting privacy rights.

WSJ @pB2 says XOM Exxon Mobil Corp. has found at least two unauthorized Twitter accounts under variatins of its name in an article about Twitte imposters.

Fin Times FT @p15 says Razorfish, its digital agency is up for sale by MSFT Microsfot who has hired organ Stanley to find a buyer. MSFT was mentioned in Barrons 6/29 @p31 saying that rumors that Yahoo! and MSFT may still get together in a merger of some kind. According to AJC 6/26 MSFT said that prices for the Windows 7 computer system will be about the same as for Vista, in some cases as low as $50 (this was alos reported in Barron's 6/29 @ p14. MSFT is the subject of a story in Forbes 7/13 @p43 about MSFT's Office encryption is first-rate but it ttook a while to develop it. MSFT is also discussed in a story @ Forbes p36 7/13 about former MSFT executives Paul Maritz and Tod Nielsen leaving MSFT and are running VMware, a software company with $1.9 billion in revenue that has become "the standard-setter in the exploding market for computer virtualization."

Fin Times @p16 says BAC Bank of America Merrill Lynch's Asia-Pacific unit is trying to recurit bankers in order to expand its Asia unit. AJC @pA15 said BAC said on Thursday it will raise more money than the government said it needed, having raised $38 billion which is more than the $33.9 billion the Fed said it needed. WSJ 2 pB2 6./27 said BAC Bank of America Tower got refinancing with a $1.28 billion 3 year mortgage.

NYT 6/27 @pB2 had a story that CSCO Cisco and some other companies do not have to follow "buy American" rules for some computer components supplied under a $4.7 billion program to build high-spped Internet lines a Federal agency has ruled.

Barrons 6/29 @p29 quotes HPQ Hewlett-Packard CEO Mark Hurd as saying he puts his company first over his all other of his priorities including his own family.

NYT @ pB2 6/27 said JPM JPM Morgan Chase and Citigroup are re-eintering the jumbo mortgage business.

6/27 AJC @pA12 said WMT Wal-Mart among other retailers was going to add self-service vision screening kiosks to their stores called EyeSites.

GE is going to build a $100 million manufacturing technology center in Michigan that wille eventually employ about 1,200 workers according to AJC 6/27 @pA13, IBD 6/29, NYT 6/27 @ pB2 and WSJ 6/27-28 @ pA3.

Barron's BRN 6/29 @p17 has a story about Wendy's/Arby's that says MCD McDonald's has a P/E of 9 which is in line with fast-food's historic EBITDA multiple.

BRN's @p13 6.29 has a story about bonds noting that MRK Merck recently did a $4.25 billion bond issuance at a yield of 5%. The article noted that T AT&T's stock dividend yield of 6.7% is comparable to the rate on some of its longer-term debt and that MSFT which in May sold debt for the first time, paid 3% to 5.24% for money "it doesn't need." Fin Times 6/27-28 said that Merck of US is close to restructuring its animal medicines assets in a deal likely to be finalized soon with its partner Sanofi-Aventis that could earn it more than $10 bill.

Atlanta Business Chronicle 6/29 on its front page said that KFT Kraft is targeting Atlanta for a 1.1 million square foot warehouse that could create 200 new jobs. The article noted that WMT Wal-Mart accounts for 16% of KFT's sales. Atlanta Business Chronicle, same issue, @p3A has a story about PG Procter & Gamble's plans to launch a national franchise-based car wash chain, Mr. Clean Car Wash, to be based in Atlanta. PG is mentioned in a story @p52 of 7/13 Forbes that PG's p/e is 9 in a story about its competitor Prestige Brands.

Investor's Business Daily @pA6 6/29 has an article about chipmaker STEC and mentions HPQ Hewlett-Packard and IBM as customers for its solid state devices.

IBD 6/29 @pA9 has a story about biosimilars which are generic biologics that are based on genes instead of chemicls and mentioned MRK's biosimilars of Neupogen and Neulasta (in development) which they acquired by buying Insmed's biologics unit in February. PFE Pfizer and Sanofi-Aventis are rumored to be considering buying Wockhardt, an Indian biosimilar ocmpany according to the article.

AJC 6/27 @pA14 said KO announced the opening of two new plants and then two days later PepsiCo said it had opened its first overseas "green" plant in China.

Forbes 7/13 @p92 has a story about how CVX Chevron got an environmental suit thrown out of New York in favor of litigating in Ecuador and now they may be hit with a $27 billion judgment later this year.

Here are the latest SEC filings as of 6/29/09 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 6/29/09 8K announcing results of offer to exchange up to 200 million of its shares
BA Boeing 6/26/09 8K announcing grant of options to James A. Bell
CAT Caterpiller 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 and 6/19 regarding writeoff for the Valdex judgment
GE 6/12/09 8K Changes to board of directors
HPQ Hewlett-Pack 6/5/09 10Q
HD Home Depot 6/4/09 10Q
INTC Intel 6/26/09 S8
IBM 6/17/09 Proxy by Shareholder
JPM JPMorgan 6/26/09 Freewriting Prospectus re: Return Optimization Securities
JNJ Johnson 5/5/09 10Q
KFT Kraft 6/22/09 8K re: personnel changes
MCD McDonalds 6/11/09 11K Annual report of employee stock
purchase plan
MRK Merck 6/29/09 Proxy update 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 4/24/09 10Q
VZ Verizon 5/26 Free Writing Prospectus for Direct Investment Purch. shareholder .
WMT Wal-Mart 6/5/09 10Q