5/23/10 Sat./Sun Barron's: Sterne Agee says 3M is a Buy

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Post No. 445. The following is brought to you by Intellivest Securities Research, Inc. Toward the end of this Blog is a list of the Dow 30 current CEOs, a ranking of the Dow 30 components by market capitalization as of 5/1/10 and an update of the Dow 30 component's SEC filings as of 5/10/10.

A read of Saturday's Wall St. Journal & Financial Times, Sat. & Sunday's New York Times, & Atlanta Journal & Constitution & 5/24/10 issue 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 Friday's stock prices and related data.

WSJ pB1 "Dow climbs 125.38 Points But Falls 4% for the Week" by Peter McKay says stocks ended a tumultuous week on a high note Fri,, led by a surge in fin'l stocks after the Senate's approval of the biggest overhaul of fin'l regulation since the 30's. JPMorgan rose 5.9% and Bank of America rose 4.5%.

WSJ pB3 "JPMorgan, BofA Boost blue Chips" by Donna Yesalavich says stocks advanced led by fin'l firms, including JPMorgan, Bank of America and American Express, after the Senate passed a fin'l overhaul bill.

Fin Times p14 "JPMorgan leads the way as fin'l sector rallies" by Telis Demos says US stock markets found their floor following three sessions of losses, as the fin'l sector rallied after the US Senate finished its work on the regulatory reform bill.

Sat. NYT pB8 "Markets Close Higher After an Early Decline" by Christine Hauser says what began as another losing day for the stock market on Fri ended instead with a gain, a welcome close to a tumultuous week during which the Dow Jones industrial average lost more than 400 points.

Dow: The Dow Jones Industrial Average closed Friday at 10,193.39 up 125.38 or 1.25% from Thurday's close of 10,068.01. For the week the Dow is down 426.77 or 4.02% from last Friday's close of 10,620.16. For the year the Dow is down 2.25%. up Of the 30 Dow Companies: 2 gained and 2 (AT&t & Microsoft) declined. The biggest gainer dollar-wise and percentage-wise w8as JPMorgan JPM $40.05 +2.22 5.87% 88,011,489 NYSE. The biggest decliner dollar-wise and percentage-wise was Microsoft MSFT $26.84 -0.27 1% 116,340,960 NASDAQ-GS.

As of the close of the market Friday, the current divisor for the Dow Jones Industrial Average found at page B4 of today's Wall St. Journal is 0.132319125 unchanged, the trailing P/E ratio is 14.82 up from Friday's 14.64 (year ago it was 41.60) the P/E estimate is 13.10 unchanged from Friday's 13.10 (year ago it was 23.73) and the current dividend yield is 2.70 down from Friday's 2.74 (it was 3.71 a year ago). The Dow's all-time high was 14,164.53 on Oct. 9, 2007. The 12 year low close for the Dow was on March 9, 2009 when it fell to 6,547.05.

Friday's Dow Jones Industrial Average closing numerator was 1,348.78 up 16.59 from Thursday's closing numerator of 1,332.19. 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 numerator increase of 16.59 for Friday by the divisor (0.132319125) you get the increase in Thursday's Dow of 125.38. A $1 change in the price of any DJIA stock = a 7.56 change in the average.

The average closing price (the closing numerator divided by 30) of Friday's Dow Jones Industrial Average was $44.96 up 0.55 from Thursday's Dow Jones Industrial Average average closing price of $44.41. The median closing price of Friday's Dow Jones Industrial Average was 39.94. The lowest volume was 3M MMM $80.7 +1.12 1.41% 6,440,348 NYSE and the highest volume again was Bank of America BAC $15.99 +$39.82 1.20 3.11% 18,393,310 NYSE.

If Friday morning before the market opened you had purchased 100 shares of each of the Dow Jones Industrial Average 30 shares (assuming you could buy fractional shares and assuming no transaction costs) and sold at the close you would have made $1,647.99 ($134,877.99 - $133,230).

Market Watch Fri. 5/21/10 4:14 p.m. by Laura Mandaro says U.S. stocks Friday made a late-session sprint higher, capping a losing week on a bright note, after a choppy session colored by the euro's moves and bank stocks' reaction to reform legislation. The Dow Jones Industrial Average (DJIA 10,193, +125.38, +1.25%) added 125.38 points, or 1.3%, to 10,193.39, with a 5.9% gain in J.P. Morgan Chase & Co. (JPM 40.00, -0.05, -0.13%) leading the index higher. The S&P 500 (SPX 1,088, +16.10, +1.50%) added 16.1 points, or 1.5%, to 1,087.69, with a more than 3% surge in financials leading all industry groups higher. The Nasdaq Composite (DJC 3,498, +45.86, +1.33%) added 25 points, or 1.1%, to 2,229.04. For the week, however, the Dow lost 4%, the S&P 500 fell 4.2% and the Nasdaq slid 5%.

AT&T T $24.85 -0.11 0.44% 53,326,881 NYSE: Barron's p29 "Sprint Nextel: Ready for Relaunch" by Alexander Eule says subscriber losses have slowed for Spint and it could resume expanding its custoemr bae by the end of the year. Rival Verizon is building a new 4G network, but it isn't expected for another year. AT&T has chosen to focus on improving its 3G offering before building out a 4G network.

Sun NYT Bus. p1 "Google" by Bard Stone in this profile on how big Google is getting and how it has drawn the attention of antitrust regulators says that AT&T and Microsoft have vociferously lobbied against microsoft especially in the battle for "net neutrality" a term used by Google and others who fear that telecommunications providers might throttle bandwidth for certain Internet services, discouraging innovation. Microsoft provides email and other services in copetition with Google and has a rival search enginge, Bing, which controls 11.8% of the market in the US while Google has 64.4%. Microsoft is also a member, along with Amazon.com and Yahoo, of the Open Book Alliance, a group which opposes the Google Books settlement. AT&T spent $14.7 mil on lobbying in '09, while Microsoft spent $6.7 mil.

WSJ pB6 "AT&T Raises Smartphone, netbook Termination Fees" by Roger Cheng says AT&T next month will raise the termination fee it charges customers to void smartphone wireless contracts early, a move that comes amid expectations that the carrier will lose exclusivity on he Apple iPhone over the next year. The Dallas firm will raise early termination fees to $325 from $175.

Alcoa AA $11.35 +0.28 2.53% 43,344,755 NYSE: No mentions found.

AmerEx $39.82 +$39.82 1.20 3.11% 18,393,310 NYSE: WSJ pB3 "JPMorgan, BofA Boost blue Chips" by Donna Yesalavich says stocks advanced led by fin'l firms, including JPMorgan, Bank of America and American Express, after the Senate passed a fin'l overhaul bill.

Bank of Am BAC $15.99 +$39.82 1.20 3.11% 18,393,310 NYSE: WSJ pB1 "Dow climbs 125.38 Points But Falls 4% for the Week" by Peter McKay says stocks ended a tumultuous week on a high note Fri,, led by a surge in fin'l stocks after the Senate's approval of the biggest overhaul of fin'l regulation since the 30's. JPMorgan rose 5.9% and Bank of America rose 4.5%.

WSJ pB3 "JPMorgan, BofA Boost blue Chips" by Donna Yesalavich says stocks advanced led by fin'l firms, including JPMorgan, Bank of America and American Express, after the Senate passed a fin'l overhaul bill.

Boeing BA $64.56 +$39.82 1.20 3.11% 18,393,310 NYSE: Barron's pM2 "The Trader" by Kopin Tan says United Technologies should hold up better than its peers since it derives 40% of its rev from steadily recurring service and maintenance congtracts, like those for its Otis elevators. Yet its shares have dropped 14% to just 12.4 projected '11 profits, a discount to historical averages and other industrial and construction related stocks. It earns more than $3 a sahre per year in free cash flow and pays a 2.6% yield. Its Pratt & Whitney engine biz might benefit as Boeing and Airbus re-engineer certain narrow-body planes.

Caterpillar CAT $60.09 +$39.82 1.20 3.11% 18,393,310 NYSE: No mentions found.

Chevron CVX $74.48 +0.88 1.2% 15,703,644 NYSE: Barron's pP7 "Big Stocks with Plump Dividends" by Kopin Tan says big stocks with stable payouts trailed smaller, riskier issues in the '09 and some now trade at attractive prices per Jason Pride, with Phil. manager Glenmede who gives the following examples of stocks yielding above 3%, histories of expanding payouts, and the cash to keep doing it: Mcdonald's, helped by global consumer growth, Chevron, the strongest energy giant; and Johnson & Johnson with undervalued pipeline for its drugs.

CSCO $23.46 +0.15 0.64% 87,576,536 NASDAQ-GS: No mentions found.

Coke KO $51.59 +0.05 0.1% 16,894,642 NYSE:
Barron's p33 "Talking with Donald Yacktman, Portfolio manger at Yacktman Fund" by Michael Shari says he likes eh defensive positions in Pepsi and coca-Cola because they are selling for less than their average prices.

Sun. AJC "At Coca-Cola, age is experience" by Jeremiah McWilliams says Coca cola has one of the oldest average ages of its members of its Board of Directors among Ga. public companies at age 68 and compares it with the average age of coca cola Enterprises of 59 and at Home Dept at 59.

WSJ pB6 "Pepsi Battles coke in China" by Valerie Bauerlein says PepsiCo plans to invest $2.5 bil in China over the next 3 years, on top of $1 bil invested since '08, highlighting growing competition with Coca cola and local snack makers for the Chinese consumer.

DuPont DD $36.1 +0.39 1.09% 12,361,892 NYSE: No mentions found.

Disney DIS $32.87 +0.88 2.75% 19,945,287 NYSE: WSJ pB6 "Weinstein Talks with Disney Slip" by Ethan Smit, Sat. NYT pB3 "Deal to buyMiramax Said to Be in Jeopardy" by Brooks Barnes, say discussions that could lead to filmmaking brothers Bob and Harvey Weinstein buying back Miramax Films from Disney appeared to be on the rocks over how the studio's library would be managed.

WSJ pA1 by Lauren Schuker, Ethan Smith says Hollywood studios including Disney's Disney Stuios, GE's Universal, Sony, paramount, 20th Century Foxy and Warner are planning to have a system by the end '10 or early '11 where all films would be available to TV just 30 days after they are released to theatres.

Exxon XOM $60.88 +0.55 0.91% 52,198,111 NYSE: No mentions found.

GE $16.42 +0.16 0.98% 145,266,336 NYSE: WSJ pA1 by Lauren Schuker, Ethan Smith says Hollywood studios including Disney's Disney Stuios, GE's Universal, Sony, paramount, 20th Century Foxy and Warner are planning to have a system by the end '10 or early '11 where all films would be available to TV just 30 days after they are released to theatres.

WSJ pB2 "GE Capital Sidesteps harshest Curbs" by Paul Glader says under a compromise passed as part of the Senate's bill Thurs, GE Capital Services cold remain under the umbrella of the parent company without subjecting the broader enterprise to the scrutiny of banking regulators at the Fed. Reserve.

Hewlett-Packard HPQ $46.58 +0.63 1.37% 27,587,158 NYSE: Sun NYT Bus. p2 "Chatter" quotes Chandrakant D. Patel, director of Hewlett-Packard's sustainable info tech lab, referring to HPQ's attempt to use cow manure to power data centers as saying "Information technology and manure have a symbiotic relationship."

Barron's p19 "EMC . . ." by Mark Veverka profiles EMC, the global leader in data storage and info security. It trades for 15 times '10 estimates and Brian Marshall, an analyst at Broadpoint Amtech, says it deserves more of a growth stock multiple, instead of its p/e ratio of 18, because rev growth exceeds that of tech fimrs such as IBM and Hewlett-Packard.

Barron's p15 "At HP, the Good News Adds Up" by by Teresa Rivas says Hewlett-Packard's latest results confirm that corporate America is spending again on info tech, after the drought of the past few years. HPQ was fetching 47 when Barron's check in with CEO Mark Hurd 17 months ago. Also at p10 its says HPQ's profit jumped 28% on strong global sales.

Home Depot HD $33.02 +0.13 0.4% 35,821,251 NYSE: Sun. AJC "At Coca-Cola, age is experience" by Jeremiah McWilliams says Coca cola has one of the oldest average ages of its members of its Board of Directors among Ga. public companies at age 68 and compares it with the average age of coca cola Enterprises of 59 and at Home Dept at 59.

Intel INTC $20.9075 +0.1175 0.57% 107,113,722 NASDAQ-GS: No mentions found.

IBM $125.42 +1.62 1.31% 12,529,120 NYSE: Barron's p19 "EMC . . ." by Mark Veverka profiles EMC, the global leader in data storage and info security. It trades for 15 times '10 estimates and Brian Marshall, an analyst at Broadpoint Amtech, says it deserves more of a growth stock multiple, instead of its p/e ratio of 18, because rev growth exceeds that of tech fimrs such as IBM and Hewlett-Packard.

JPMorgan JPM $40.05 +2.22 5.87% 88,011,489 NYSE: Barron's pP14 "Private Giant" by Suzanne McGee, photo by Brad Trent profiles Catherine Keating, J.P. Morgan Chase's CEO of its Private Bank's US operations. The typical organ client has $30 mil in the bank. Its private banks manages $720 bil and towers over all other high end banks in the US. Within a few years, it could become the world's first trillion dollar private bank. It has 2,000 bankers who each have about 30 customers.

Barron's pM5 charts JPMorgan Chase saying the Senate passed its fin'l reg legislation that stopped short of mandating the breakkup of the nation's banking giants.

WSJ pB1 "A Day After, the Jockeying Continues" by Damian Paletta, Greg Hitt, Robin Sidel says the Senate bill would change the derivatives markets significantly and that JPMorgan and other banks fought it unsuccessfully saying they needed derivatives to hedge risks i ntheir lending and underwriting deals.

WSJ pB1 "Dow climbs 125.38 Points But Falls 4% for the Week" by Peter McKay says stocks ended a tumultuous week on a high note Fri,, led by a surge in fin'l stocks after the Senate's approval of the biggest overhaul of fin'l regulation since the 30's. JPMorgan rose 5.9% and Bank of America rose 4.5%.

WSJ pB3 "JPMorgan, BofA Boost blue Chips" by Donna Yesalavich says stocks advanced led by fin'l firms, including JPMorgan, Bank of America and American Express, after the Senate passed a fin'l overhaul bill.

Johnson & Johnson JNJ $60.88 +0.33 0.55% 21,552,736 NYSE: Barron's pP7 "Big Stocks with Plump Dividends" by Kopin Tan says big stocks with stable payouts trailed smaller, riskier issues in the '09 and some now trade at attractive prices per Jason Pride, with Phil. manager Glenmede who gives the following examples of stocks yielding above 3%, histories of expanding payouts, and the cash to keep doing it: Mcdonald's, helped by global consumer growth, Chevron, the strongest energy giant; and Johnson & Johnson with undervalued pipeline for its drugs.

Kraft KFT $29.69 +0.56 1.92% 17,603,974 NYSE: No mentions found.

McDonalds MCD $67.86 +0.20 0.3% 12,506,077 NYSE: Barron's pP7 "Big Stocks with Plump Dividends" by Kopin Tan says big stocks with stable payouts trailed smaller, riskier issues in the '09 and some now trade at attractive prices per Jason Pride, with Phil. manager Glenmede who gives the following examples of stocks yielding above 3%, histories of expanding payouts, and the cash to keep doing it: Mcdonald's, helped by global consumer growth, Chevron, the strongest energy giant; and Johnson & Johnson with undervalued pipeline for its drugs.

MRK $32.04 +0.22 0.69% 25,176,443 NYSE: No mentions found.

Microsoft MSFT $26.84 -0.27 1% 116,340,960 NASDAQ-GS: Sun NYT Bus. p1 "Google" by Bard Stone in this profile on how big Google is getting and how it has drawn the attention of antitrust regulators says that AT&T and Microsoft have vociferously lobbied against microsoft especially in the battle for "net neutrality" a term used by Google and others who fear that telecommunications providers might throttle bandwidth for certain Internet services, discouraging innovation. Microsoft provides email and other services in copetition with Google and has a rival search enginge, Bing, which controls 11.8% of the market in the US while Google has 64.4%. Microsoft is also a member, along with Amazon.com and Yahoo, of the Open Book Alliance, a group which opposes the Google Books settlement. AT&T spent $14.7 mil on lobbying in '09, while Microsoft spent $6.7 mil.

Pfizer PFE $15.4 +0.17 1.12% 94,535,478 NYSE: No mentions found.

Procter & Gamble PG $61.85 0.24 0.39% 22,915,652 NYSE: No mentions found.

3M MMM $80.7 +1.12 1.41% 6,440,348 NYSE: Barron's pM12 "Research Reports" edited by Anita Peltonen says Sterne Agee says 3 is a buy at the 5/18 price of $84.68 saying over the past 2 years 3M has traded at an average 6% P/E discout to the S&P 500 and is trading at a 10% relative P/E premium based on a '10 estimated eps of $5.60.

Travelers TRV $49.23 +0.81 1.67% 8,261,055 NYSE: No mentions found.

United Technologies UTX $66.44 +0.01 0.02% 10,589,777 NYSE: Barron's pM2 "The Trader" by Kopin Tan says United Technologies should hold up better than its peers since it derives 40% of its rev from steadily recurring service and maintenance congtracts, like those for its Otis elevators. Yet its shares have dropped 14% to just 12.4 projected '11 profits, a discount to historical averages and other industrial and construction related stocks. It earns more than $3 a sahre per year in free cash flow and pays a 2.6% yield. Its Pratt & Whitney engine biz might benefit as Boeing and Airbus re-engineer certain narrow-body planes.

Verizon VZ $27.96 0+.20 0.72% 34,337,203 Dual Listed: Barron's p29 "Sprint Nextel: Ready for Relaunch" by Alexander Eule says subscriber losses have slowed for Spint and it could resume expanding its custoemr bae by the end of the year. Rival Verizon is building a new 4G network, but it isn't expected for another year. AT&T has chosen to focus on improving its 3G offering before building out a 4G network.

WalMart WMT $51.37 +0.07 0.14% 24,350,256 NYSE: Barron's p10 "Week Review" says WalMart reported a 10% rise in 1Qtr net, but US sales at stores open at least a year, minus gas sales, fell 1.1% and it offered a cautious outlook.

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Here are the current CEOs of the Dow 30 Companies:

AT&T T Randall L. Stephenson
Alcoa AA Klaus Kleinfeld
American Express AXP Kenneth I. Chenault
Bank of America BAC Brian T. Moynihan
Boeing BA W. James McNerney, Jr.
Caterpillar CAT Douglas Oberhelman
Chevron CVX John Watson
Cisco CSCO John Chambers
Coca Cola KO Muhtar Kent
Disney DIS Robert Iger
DuPont DD Ellen Kullman
ExxonMobil XOM Rex W. Tillerson
GE Jeffrey R. Immelt
Hewlett-Packard HPQ Mark Hurd
Home Depot HD Frank Blake
Intel INTC Paul S. Otellini
IBM Samuel J. Palmisano
JPMorgan Chase JPM Jamie Dimon
Johnson & Johnson JNJ William C. Weldon
Kraft KFT Irene Rosenfeld
McDonald's MCD Jim Skinner
Merck MRK Robert Clark
Microsoft MSFT Steve Ballmer
Pfizer PFE Jeffrey Kindler
Procter & Gamble PG Bob McDonald
3M MMM George W. Buckley
Travelers TRV Jay S. Fishman
United Technologies UTX Louis Chenevert
Verizon VZ Ivan Seidenberg
Wal-Mart WMT Mike Duke

Here are the Dow Jones Industrial Average 30 ranked in order of market capitalization rounded to the nearest billion as of 5/1/10 followed by number of shares outstanding rounded to the nearest 1/2 billion:

1. Exxon Mobil XOM $319 [5]
2. Microsoft MSFT 268 [9]
3. WalMart WMT 201 [4]
4. GE 201 [10.5]
5. Procter & Gamble PG 180 [3]
6. BAC 179 [10]
7. Johnson & Johnson JNJ 177 [3]
8. JPMorgan Chase 169 [4]
9. IBM 166 [1]
10. Chevron CVX 163 [2]
11. AT&T 154 [6]
12. Cisco CSCO 154 [6]
13. Pfizer PFE 135 [8]
14. Intel INTC 126 [5.5]
15. Coke KO 123 [2]
16. Hewlett-Packard HPQ 122 [2]
17. Merck MRK 109 [3]
18. Verizon VZ 82 [3]
19. McDonald's MCD 76 [1]
20. Disney DIS 71 [2]
21. United Technologies UTX 70 [1]
22. 3M MMM 63 [.5]
23. Home Depot 60 [1.5]
24. Boeing BA 55 [1]
25. American Express AXP 55 [1]
26. Kraft KFT 51 [1.5]
27. Caterpillar CAT 43 [.5]
28. DuPont DD 36 [1]
29. Travelers 25 [.5]
30. Alcoa AA 14 [1]

Here are the latest SEC filings as of 5/10/10 market other than ownership filings, registration of shares for employee benefit plans, free writing prospectuses 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: 5/6/10 10-Q
5/4/10 8K: re: results from the annual meeting of the stockholders of AT&T Inc. held on April 30, 2010, in Chattanooga, Tennessee.

Alcoa AA: 5/4/10 8K re: Alcoa Inc.’s 2009 Sustainability Highlights Report.

American Express AXP: 5/5/10 10Q
4/28/10 8-K re: transcript of 4/22/10 American Express live audio conference call/webcast to discuss the Company’s financial results for the three months ended March 31, 2010

Bank of Am BAC: 5/10/10 Rule 424(b) Prospectus
5/7/10 10-Q

Boeing BA: 4/28/10 8-K re: results of its Annual Meeting of Shareholders on April 26, 2010

Caterpiller CAT: 5/10/10 Definitive Proxy materials
5/510 8-K re: departure of directors and officers
5/3/10 10Q

Chevron CVX: 5/510 10Q
4/30/10 8K re: 4/30/10 press release announcing unaudited first quarter 2010 net income of $4.6 billion

Cisco CSCO: 2/17/10 8K re: amendment of an excec vp's employment agreement.

Coke KO: 4/29/10 10Q
4/26/10 8K re: results of 4/21/10 voting results from annual meeting in Duluth, Ga.

Disney DIS: 3/16/10 8K re: amendment to stock option plan & by-laws