8/16/09 Sunday Barron's Front Cover Likes; MSFT, T, XOM & PG

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A read of Sunday's 8/1/09 print editions of: New York Times, Atl Journal Const, & 8/17/09 edition of Barron's yielded the following stories about Dow Jones Industrial Average 30 component companies and the Dow with stories about the Dow aggregated first and then items about Dow Jones Industrial Average 30 companies presented alphabetically, followed by symbol and Frisday's closing price and related data:

Dow Jones Industrial Average: The Dow Jones Industrial Average closed Friday at 9321.40 down 76.79 or 0.82% from Thursday's close of 9398. Of the 30 Dow Companies: 6gained and 23 declined and one was unchanged (MRK Merck) with the biggest loser being BA Boeing $44.87 -1.75 3.75% 10,312,751 NYSE and the biggest gainer being BAC Bank of Am $17.39 +0.39 2.29% 296,828,316 NYSE. For the week, the Dow was done 48.67 or 0.52% per BRN's pM4.

T $25.45 -0.03 0.12% 18,166,935 NYSE: On the front cover of Barron's it says "Go For Quality - This year's rally has left behind some solid, high-quality, blue-chip stocks, many of them with plump dividends. Among our favorites: Microsoft, Novartis, ExxonMobil, AT&T, Nestle, Comcast and Procter & Gamble. The story says that for T, the valuation is low and at 25 trades for 12 times projected '09 profits of 2.08 a share, but earnings are penalized by about 0.40 for non-cash goodwill amortization from acquisitons.

AXP $31.72 -0.26 0.81% 7,472,479 NYSE: No mentions found.

AA $13.27 -0.44 3.21% 34,959,724 NYSE: No mentions found.

BAC $17.39 +0.39 2.29% 296,828,316 NYSE: BRN's pM2 in Charting the Market charts BAC saying the hugely successful hedge fund manager John Paulson said he bought 168 shares of BAC.

BA $44.87 -1.75 3.75% 10,312,751 NYSE: No mentions found.

CAT $46 -1.17 2.48% 9,000,761 NYSE: On the front cover of Barron's it says "Go For Quality - This year's rally has left behind some solid, high-quality, blue-chip stocks, many of them with plump dividends. Among our favorites: Microsoft, Novartis, ExxonMobil, AT&T, Nestle, Comcast and Procter & Gamble. Inside the story, it says it also likes MSFT and WMT but that its outlook on CAT Caterpillar is uncertain if the economy continues to sputter.

CVX $68.63 +0.10 0.15% 8,596,236 NYSE: NYSE: On the front cover of Barron's it says "Go For Quality - This year's rally has left behind some solid, high-quality, blue-chip stocks, many of them with plump dividends. Among our favorites: Microsoft, Novartis, ExxonMobil, A&T, Nestle, Comcast and Procter & Gamble. it says that XOM is best of the big oils and trades at just a smallP/E compared to the group. it says XOM shares normally command a sizable premium to Chevron's but that gaps has shrunk this year as Exxon has fallen 14%.

CSCO $21.31 -0.20 0.93% 34,516,411 NASDAQ-GS: No mentions found.

KO $48.47 +0.35 0.73% 7,190,446 NYSE: BRN's p12 "Coke's Fortunes Are Set to Pop - Coke has flagged in the past 12 months, but this mother of all brands is more than durable - and cheap. Putting the bottlers on steroids" says after besting Pepsico in the cola wars of the 1990's to become the King of Pop, KO has been challenged by the recession and health concerns which has resulted in a decline in soda consumption in the US and depressed KO's profits and shres. Earnings are expected to slip 3% this year, while KO's stock has fallen 13% in the past 12 months, to a recent 48.47 on Friday. This 2 page story says KO sells for just 15 times analysts' '09 earnings estimates and 15 times 2010 forecasts - near its lowest valuation in 20 years. Given KO's exposure to fast growing emerging markets, its strong balance sheet, a gold plated brand and savvy management, Christopher C. Williams, the author, says KO arguably deserves to trade at a mltiple of at least 17 times forward earnings, which would imply a stock price of 56. Add a 3.4% dividend yeild, and that's a potential total return of 20% based on a stock price of 48.

DIS $25.86 -0.40 1.52% 8,712,002 NYSE: No mentions found.

DD $32.36 -0.87 2.62% 6,310,210 NYSE: No mentions found.

XOM $68.21 -0.54 0.79% 17,823,667 NYSE: On the front cover of Barron's it says "Go For Quality - This year's rally has left behind some solid, high-quality, blue-chip stocks, many of them with plump dividends. Among our favorites: Microsoft, Novartis, ExxonMobil, A&T, Nestle, Comcast and Procter & Gamble. it says that XOM is best of the big oils and trades at just a smallP/E compared to the group. it says XOM shares normally command a sizable premium to Chevron's but that gaps has shrunk this year as Exxon has fallen 14%.

GE $13.92 -0.18 1.28% 64,149,929 NYSE: NYT p3 "Bright Ideas - The Corporate lab as Ringmaster" says the Internet has transformed the economics of innocations and that the nation's big corporate research and development labs - IBM, GE, and HPQ have their roots in the industrial ear, when communication was costly,, information traveled slowly and social networks were at conferences instead of on the Web. It says the Internet is making the tradition research lab obsolete and gives an example the IBM research center in Yorktown Heights, NY which is now open to the outside world and its customers.

HPQ $44.09 -0.26 0.59% 11,379,524 NYSE: BRN's p11 says HP will report Q2 earnings on Tuesday 8/18.

NYT p3 "Bright Ideas - The Corporate lab as Ringmaster" says the Internet has transformed the economics of innocations and that the nation's big corporate research and development labs - IBM, GE, and HPQ have their roots in the industrial ear, when communication was costly,, information traveled slowly and social networks were at conferences instead of on the Web. It says the Internet is making the tradition research lab obsolete and gives an example the IBM research center in Yorktown Heights, NY which is now open to the outside world and its customers.

HD $27.14 -0.54 1.95% 15,472,823 NYSE: BRN's p11 says HD will report Q2 earnings on Tuesday 8/18.

INTC $18.77 -0.28 1.47% 42,846,164 NASDAQ-GS: No mentions found.

IBM $118.57 -1.01 0.84% 4,625,663 NYSE: Barron's Alan Abelson's column at p5 says the recession has even hit the it job sector with around 500,000 high tech jobs joining the five million manufacturing slots have have migrated overseas due to cheap labor. As an example, he says that more 70% of IBM's workforce is now offshore.

NYT p3 "Bright Ideas - The Corporate lab as Ringmaster" says the Internet has transformed the economics of innocations and that the nation's big corporate research and development labs - IBM, GE, and HPQ have their roots in the industrial ear, when communication was costly,, information traveled slowly and social networks were at conferences instead of on the Web. It says the Internet is making the tradition research lab obsolete and gives an example the IBM research center in Yorktown Heights, NY which is now open to the outside world and its customers.

JPM $42.45 -0.45 1.05% 37,867,877 NYSE: No mentions found.

JNJ $60.08 -0.24 0.4% 8,612,530 NYSE: BRN's p11 says on Tues. 8/18 an FDA advisory panel votes on a hip system sponsored by JNJ's DePuy Orthopaiedics.

KFT $28.1 -0.25 0.88% 6,563,979 NYSE: No mentions found.

MCD $55.27 -0.51 0.91% 7,550,918 NYSE: No mentions found.

MRK $30.98 unch unch 15,905,717 NYSE: BRN's pM2 in Charting the Market charts Schering-Plough saying as its merger with MRK nears, it got the FDA's nod for a new remedy to treat schizophrenia and bipolar disorder.

BRN's p30 "Speaking of Dividends by Shirley A. Lazo Pfizer to Lift Payout? It may be an exception in consolidating drug industry" says that after a lull of nearly a decade, merger activity among big drug companies has taken off this year because the deals aredesigned to strengthen sales and profits in the fac3e of patent expirations in key drugs. PFE, the world's largest drugmaker, set the tone in Jan by offering $68 bil in cash and stock for Wyeth. As a result, PFE slashed its 0.32 a share quarterly common dividend in half to save more than $4 bil to pay for the purchase which will close by year end. It says that MRK Mercky, which is buying Schering-Plough for $41 bil has not reduced dividends.

MSFT $23.692 +0.072 0.3% 45,508,512 NASDAQ-GS: BRN's p10 says SEC is prepared to bring insider trading charges against Pequot Capital Management and its founder Arthur Samberg, a former member of the Barron's Roundtable, over 2001 trading in MSFT stock.

On the front cover of Barron's it says "Go For Quality - This year's rally has left behind some solid, high-quality, blue-chip stocks, many of them with plump dividends. Among our favorites: Microsoft, Novartis, ExxonMobil, AT&T, Nestle, Comcast and Procter & Gamble. Inside the story, it says it also likes MSFT and WMT but that its outlook on CAT Caterpillar is uncertain if the economy continues to sputter. it says MSFT has a lot of cash, calls it a software monopolist that may benefit from Windows release.

BRN's p22 in a story about online peer to peer lending it mentions a MSFT software engineer Mike Fisher is the leader of the 88 member Microsoft Employee Group that borrows among each other and there have been no loan defaults

PFE $15.77 -0.03 0.19% 32,884,551 NYSE: BRN's p30 "Speaking of Dividends by Shirley A. Lazo Pfizer to Lift Payout? It may be an exception in consolidating drug industry" says that after a lull of nearly a decade, merger activity among big drug companies has taken off this year because the deals aredesigned to strengthen sales and profits in the fac3e of patent expirations in key drugs. PFE, the world's largest drugmaker, set the tone in Jan by offering $68 bil in cash and stock for Wyeth. As a result, PFE slashed its 0.32 a share quarterly common dividend in half to save more than $4 bil to pay for the purchase which will close by year end. It says that MRK Mercky, which is buying Schering-Plough for $41 bil has not reduced dividends.

PG $52.37 +0.07 0.13% 11,003,848 NYSE: On the front cover of Barron's it says "Go For Quality - This year's rally has left behind some solid, high-quality, blue-chip stocks, many of them with plump dividends. Among our favorites: Microsoft, Novartis, ExxonMobil, A&T, Nestle, Comcast and Procter & Gamble. it says recent profit disappointment creates a rare opportunity in PG.

MMM $71.32 -1.28 1.76% 3,503,949 NYSE: No mentions found.

TRV $47.25 -0.22 0.46% 3,841,878 NYSE: No mentions found.

UTX $57.21 -0.19 0.33% 4,287,668 NYSE: No mentions found.

VZ $31.08 +0.04 0.13% 7,607,176 NYSE: No mentions found.

WMT $51.79 -0.09 0.17% 17,012,035 NYSE: BRN's p14 "They Shopped 'Til They Dropped - The rally in retail stocks may continue to fizzle if sales keep sliding and earnings disappoint. Blame it on a mountain of consumer debt." says that is ironic that while some high end retailers like Abercrombie & Fitch and Nordstrom are doing better than the market as a whole, discounters such as WMT and Family Dollar have both underperformed.

On the front cover of Barron's it says "Go For Quality - This year's rally has left behind some solid, high-quality, blue-chip stocks, many of them with plump dividends. Among our favorites: Microsoft, Novartis, ExxonMobil, AT&T, Nestle, Comcast and Procter & Gamble. Inside the story, it says it also likes MSFT and WMT but that its outlook on CAT Caterpillar is uncertain if the economy continues to sputter. It says WMT is still growing, is buying its own stock and is boosting dividends.