Dividend Achiever Watch List

The market closed at 10,318.16 this week, virtually flat from prior week. At the end of the week, there are 16 companies compared to 18 from the previous week. Again, I added the regional banks to this list last week. Here are the companies on my watch list as of November 20, 2009.

Symbol	Name	Price	P/E	% Yr Low	Yield	EPS	Div/Shr	Payout Ratio
WTR	AQUA AMERICA INC	15.88	20.87	3.18%	3.65%	0.76	0.58	76%
THFF	First Financial Corporation	27.96	15.28	5.39%	3.22%	1.83	0.90	49%
CWT	CALIFORNIA WATER SVC	35.78	17.93	6.84%	3.30%	2.00	1.18	59%
WGL	WGL HOLDINGS INC	31.33	13.11	9.58%	4.69%	2.39	1.47	62%
UGI	U G I CP	23.36	9.88	10.50%	3.42%	2.36	0.80	34%
PNY	PIEDMONT NAT GAS CO	23.01	14.85	11.27%	4.69%	1.55	1.08	70%
NWN	NORTHWEST NAT GAS	42.82	14.82	13.55%	3.88%	2.89	1.66	57%
WEYS	Weyco Group, Inc.	23.17	23.17	15.22%	2.59%	1.00	0.60	60%
AWR	AMER ST WATER	31.94	19.72	15.89%	3.26%	1.62	1.04	64%
BCR	BARD C R INC	80.72	16.17	17.09%	0.84%	4.99	0.68	14%
UMBF	UMB Financial Corporation	39.48	18.80	17.33%	1.77%	2.10	0.70	33%
WMT	WAL MART STORES	54.28	15.73	17.36%	2.01%	3.45	1.09	32%
NJR	N J RESOURCES CP	35.40	13.46	18.20%	3.50%	2.63	1.24	47%
BRO	BROWN & BROWN INC	17.83	15.50	19.26%	1.74%	1.15	0.31	27%
RLI	R L I CP	50.84	15.94	19.60%	2.12%	3.19	1.08	34%
XOM	EXXON MOBIL CP	74.38	17.33	20.24%	2.26%	4.29	1.68	39%
16 Companies

Buffett Buy Low

Some of you may know that I bought Wal-Mart in September. Today news from CNBC was most welcomed as Warren Buffett announced he nearly doubled his share counts in Wal-Mart during the summer. Share count rose from 19.9 million shares to 37.84 million shares (90% increase). In addition to Wal-Mart, he also bought more Exxon. Both companies are listed in our watch list. - Art

Nasdaq 100 Watch List

The following are the Nasdaq 100 members that are within 20% of the 52-week low:

• Apollo Group, Inc. (APOL) at $53.86 within 2.03%
• Cephalon, Inc. (CEPH) at $59.81 within 13.82%
• Genzyme Corporation (GENZ) at $49.28 within 4.65%
• Pharma. Products Dev. (PPDI) at $20.66 within 14.97%
• Gilead Sciences, Inc. (GILD) at $47.05 within 19.51%

The following companies are the same from the prior week. This is a great opportunity to determine if these stocks are either undervalued or creating a base in the stocks price. CEPH in particular is forming a double bottom which at times is a significant marker for a turn in the stock's price. Good luck on your research of these companies. Touc.

Dividend Achiever Watch List,

The market closed above 10,000 for two consecutive weeks at 10,270.47, up 2.4% from prior week. At the end of the week, my watch list expanded to 19 companies compared to 17 from the previous week due in part because of an addition of regional banks. Here are the companies on my watch list as of November 13, 2009.

Symbol	Name	Price	P/E	% Yr Low	Yield	EPS	Div/Shr	Payout Ratio
THFF	First Financial Corporation	27.23	14.80	1.91%	3.31%	1.84	0.90	49%
WTR	AQUA AMERICA INC	15.84	20.84	2.92%	3.66%	0.76	0.58	76%
SHEN	Shenandoah Telecom	16.88	27.23	4.84%	1.90%	0.62	0.32	52%
CWT	CALIFORNIA WATER SVC	35.28	17.82	5.34%	3.34%	1.98	1.18	60%
PNY	PIEDMONT NAT GAS CO	22.86	14.75	10.54%	4.72%	1.55	1.08	70%
WGL	WGL HOLDINGS INC	31.89	13.34	11.54%	4.61%	2.39	1.47	62%
WEYS	Weyco Group, Inc.	22.48	22.48	11.79%	2.67%	1.00	0.60	60%
UGI	U G I CP	23.64	9.81	11.83%	3.38%	2.41	0.80	33%
NWN	NORTHWEST NAT GAS	42.86	14.83	13.66%	3.87%	2.89	1.66	57%
UMBF	UMB Financial Corporation	38.28	18.23	13.76%	1.93%	2.10	0.74	35%
WMT	WAL MART STORES	53.20	15.60	15.03%	2.05%	3.41	1.09	32%
MON	MONSANTO COMPANY	73.58	19.36	15.93%	1.44%	3.80	1.06	28%
NJR	N J RESOURCES CP	34.99	13.30	16.83%	3.54%	2.63	1.24	47%
BCR	BARD C R INC	80.76	16.18	17.15%	0.84%	4.99	0.68	14%
XOM	EXXON MOBIL CP	72.47	16.89	17.15%	2.32%	4.29	1.68	39%
AWR	AMER ST WATER	32.33	23.95	17.31%	3.22%	1.35	1.04	77%
RLI	R L I CP	50.60	15.86	19.03%	2.13%	3.19	1.08	34%
HGIC	Harleysville Group Inc.	31.21	13.11	19.62%	4.17%	2.38	1.30	55%
SYBT	S.Y. Bancorp, Inc.	21.90	16.22	19.74%	3.11%	1.35	0.68	50%
19 Companies

*NOTE* I added selected regional banks to my watch list. If you are interested, I urge you to do an extensive research prior to your purchase. These regional banks have payout ratio less than or equal to 50%. Next year estimates are expected to rise as well.

Nasdaq 100 Watch List

The following are the Nasdaq 100 members that are within 20% of the 52-week low:

• Apollo Group, Inc. (APOL) at $55.99 within 1.16%
• Cephalon, Inc. (CEPH) at $58.26 within 10.87%
• Genzyme Corporation (GENZ) at $52.28 within 11.02%
• Pharma. Products Dev. (PPDI) at $20.93 within 16.47%
• Gilead Sciences, Inc. (GILD) at $46.26 within 17.50%

It is interesting to note the percentage change that has occurred in last week's Nasdaq 100 watch list. Last week's list had the following one week percentage change:

• APOL down 1.94%
• CEPH up 6.74%
• GENZ up 3.32%
• PPDI down 2.88%
• GILD up 8.72%
• BIIB up 8.62%
• SRCL up 3.69%
• AMGN up 2%

The biotech/pharma sector is moving higher. As we've stated before, these companies are very undervalued at the present time. Do your research and carefully consider the opportunities. Touc.

Dividend Achiever Watch List

The market is still battling the 10,000 mark and ended the week at 10,023.42, up 3.2% this week. At the end of the week, my watch list shrank to 17 companies compared to 20 from the previous week. Here are the companies on my watch list as of November 6, 2009.

Symbol	Name	Price	P/E	% Yr Low	Yield	EPS	Div/Shr	Payout Ratio
WTR	AQUA AMERICA INC	16.16	20.72	5.00%	3.59%	0.78	0.58	74%
CWT	CALIFORNIA WATER	36.32	18.34	8.45%	3.25%	1.98	1.18	60%
MON	MONSANTO COMPANY	69.14	18.19	8.93%	1.53%	3.80	1.06	28%
WMT	WAL MART STORES	51.25	15.03	10.81%	2.13%	3.41	1.09	32%
PNY	PIEDMONT NAT GAS	22.94	14.80	10.93%	4.71%	1.55	1.08	70%
WEYS	Weyco Group, Inc.	22.63	20.95	12.53%	2.65%	1.08	0.60	56%
BCR	BARD C R INC	78.39	15.71	13.71%	0.87%	4.99	0.68	14%
UGI	U G I CP	24.14	10.02	14.19%	3.31%	2.41	0.80	33%
NWN	NORTHWEST NAT GAS	43.09	15.61	14.27%	3.85%	2.76	1.66	60%
WGL	WGL HOLDINGS INC	33.23	13.90	16.23%	4.42%	2.39	1.47	62%
XOM	EXXON MOBIL CP	72.58	16.92	17.33%	2.31%	4.29	1.68	39%
CAH	CARDINAL HEALTH	29.50	9.25	18.62%	2.37%	3.19	0.70	22%
NJR	N J RESOURCES CP	35.59	13.53	18.83%	3.48%	2.63	1.24	47%
RLI	R L I CP	50.60	15.86	19.03%	2.13%	3.19	1.08	34%
FPL	F P L GROUP INC	49.76	12.05	19.96%	3.80%	4.13	1.89	46%
PGN	PROGRESS ENERGY	37.62	14.53	20.00%	6.59%	2.59	2.48	96%
T	AT&T INC.	25.93	12.87	20.94%	6.32%	2.02	1.64	81%
17 Companies

Something to note, I've taken Shenandoah Telecom (SHEN) out because of an annual dividend payment. I feel that it offer less cushion for myself. I replaced this company with Monsanto (MON) which appear to be on its way to becoming part of the Dividend Achiever. Take a look at this report for more on MON.

Investment Observation: Aqua America (WTR)

Today's investment observation is AquaAmerica (WTR). According to Yahoo!Finance's water utilities review, WTR is ranked as the second largest water utility based on market capitalization.

The most important point about this investment observation is that WTR has fallen to a brand new low during market hours on Friday October 30th. This low may soon match the 2-year low of around $14.50 set in mid-October 2008. This is fascinating because the actual lowest point after the market peak of 2006 at $30 is no longer on our last 52-week radar. However, we will watch to see if the ultimate low of $14.50 is reached.

According to Value Line Investment Survey, WTR normally trades around 1.6 times the per share dividend divided by the "interest rate" (1.6x $0.51/interest rate). Valueline doesn't tell us by which interest rate we should apply to the company, so I have decided to apply the 30, 20, and 10 year U.S. Treasury rate. The following are the mean prices that WTR would trade at for each interest rate:

• 30 year rate- $19.29
• 20 year rate- $19.47
• 10 year rate- $23.93

Based on the 30 year rate, WTR is selling 19.91% below the historical mean value. I chose the $19.29 value since it was the most conservative figure.

However, according to Investment Quality Trends, WTR is considered undervalued when it is selling for $12.27 or less. This indicates that WTR is not currently undervalued but could easily get to the $12.50 range if market conditions continue on the downside. Additionally, WTR has a large debt low and a high dividend payout ratio of 74%. This means that the stock could only "afford" a decline in earnings of 25% before the company has to borrow or issue more share to service the dividend.

According to Dow Theory, the following are the most important downside targets to watch for:

• $14
• $11.25 (fair value)
  
• $9
• $6.50

These targets are supposed to act as support levels. Support levels are points which the stock falls to but should not go below. If the stock goes below one support level then we should expect the stock to decline to the next target level.

One support level that is significant is the $15 level. This happens to be the most obvious level that the stock needs to hold above. Falling below $15 could indicate the negative nature of the markets.

Although this is a water utility and water is critical to life, investors need to understand that companies in this industry aren't a "sure thing." The biggest reason for this is that when, and if, water becomes scarce, government regulators will step in to take over (nationalize) what should otherwise be sold at the most profitable price (thereby curbing wasteful consumption.) There is literally an upside cap on profitability to a company like this due to the critical importance of the resource being sold.

Take your time to consider this Dividend Achiever for the good and the bad attributes. Your careful analysis of this company might compel you to purchase the stock. It is my hope that the stock falls further before your next acquisition. Touc.

Please revisit Dividend Inc. for editing and revisions to this post.

Speculative Observation: Monsanto (MON)

According to Google Finance, "Monsanto Company along with its subsidiaries, is a worldwide provider of agricultural products for farmers. The Company’s seeds, biotechnology trait products, and herbicides provide farmers with solutions to produce foods for consumers and feed for animals. The Company operates in two segments: Seeds and Genomics, and Agricultural Productivity."

Although Monsanto (MON) isn't a Dividend Achiever or a member of the Nasdaq 100, the company has a solid history and provides investors with an exceptional opportunity.

MON is currently trading within 5.85% of the the 52-week low. What is significant about the low that MON is approaching is that it is close to the November 2008 low. This is a critical support level for the stock which could indicate that a major reversal is ahead.

According to Dow Theory, MON is projected to decline to the following levels:

• $52.17
• $37.08
• $21.99
• $6.90

Each of the downside targets, based on Dow Theory, should provide some kind of support level. Interestingly, MON's 50% level, based on the decline from the prior peak and the July 2002 low, is at $67.90. This means that either the stock declines much further or the stock rebounds from here.

According to Value Investment Survey dated August 2009, MON typically reverts to a level of 17 times cashflow. Full year 2008 cash flow was $4.50 per share. This equals a price of $76.50 that the shares should revert to at some point in the future. Value Line seems to believe that, for 2009, MON should achieve cash flow of $5.55 per share which implies a mean price of $94.35. I would opt for the lower price just to play it safe. In the period from 1981 to 1996, Value Line had a smaller mean price to cash flow (13x). This means that as time has gone on since 81' to 96' MON has managed to improve their price to cash flow figures.

With MON trading at 11% below the historical mean value, as well as being within 6% of the low, this is a good opportunity to get your research in as the share price declines. Focus on the downside risk and good luck. Touc.

Nasdaq 100 Watch List

The following are the Nasdaq 100 members that are within 20% of the 52-week low:

• Apollo Group, Inc. (APOL) at $57.10 within 3.16%
• Cephalon, Inc. (CEPH) at $54.58 within 3.86%
• Genzyme Corporation (GENZ) at $50.60 within 7.45%
• Gilead Sciences, Inc. (GILD) at $42.55 within 8.08%
• Biogen Idec Inc (BIIB) at $42.13 within 13.22%
• Stericycle, Inc. (SRCL) at $52.37 within 18.06%
• Amgen Inc. (AMGN) at $53.62 within 19.26%
• Pharmaceutical Product Developm (PPDI) at $21.55 within 19.92%

The fact that all of these companies (except for APOL) are within the drug industry does not surprise me. The continued undervaluation of these companies makes them prime targets for acquisition by investors and larger drug companies. Touc.

Dividend Achiever Watch List

The market appeared to be losing the 10,000 mark battle. The Dow lost 259.6 points (-2.6%) this week. At the end of the week, my watch list expanded to 21 companies compared to 15 from the previous week. Here are the companies on my watch list as of October 30, 2009.

Symbol	Name	Price	P/E	% Yr Low	Yield	EPS	Div/Shr	Payout Ratio
WTR	AQUA AMERICA INC	15.45	19.81	0.00%	3.75%	0.78	0.58	74%
SHEN	Shenandoah Telecom	16.69	26.49	0.91%	1.92%	0.63	0.32	51%
WMT	WAL MART STORES	49.68	14.57	7.42%	2.19%	3.41	1.09	32%
BCR	BARD C R INC	75.07	15.04	8.89%	0.91%	4.99	0.68	14%
CWT	CALIFORNIA WATER SVC	36.57	17.33	9.20%	3.23%	2.11	1.18	56%
NWN	NORTHWEST NAT GAS	41.81	15.15	10.87%	3.97%	2.76	1.66	60%
WEYS	Weyco Group, Inc.	22.30	20.65	10.89%	2.69%	1.08	0.60	56%
PNY	PIEDMONT NAT GAS CO	23.28	15.02	12.57%	4.64%	1.55	1.08	70%
UGI	U G I CP	23.88	9.91	12.96%	3.35%	2.41	0.80	33%
CAH	CARDINAL HEALTH INC	28.34	8.88	13.95%	2.47%	3.19	0.70	22%
WGL	WGL HOLDINGS INC	33.06	13.83	15.63%	4.45%	2.39	1.47	62%
XOM	EXXON MOBIL CP	71.67	11.50	15.86%	2.34%	6.23	1.68	27%
MCD	MCDONALDS CP	58.61	15.14	16.20%	3.75%	3.87	2.20	57%
NJR	N J RESOURCES CP	35.20	13.38	17.53%	3.52%	2.63	1.24	47%
BDX	BECTON DICKINSON CO	68.36	14.18	17.58%	1.93%	4.82	1.32	27%
FPL	F P L GROUP INC	49.10	10.37	18.37%	3.85%	4.74	1.89	40%
SJW	S J W CP	21.77	23.92	19.48%	3.03%	0.91	0.66	73%
PGN	PROGRESS ENERGY INC	37.53	13.08	19.71%	6.61%	2.87	2.48	86%
T	AT&T INC.	25.67	12.71	19.73%	6.39%	2.02	1.64	81%
AWR	AMER ST WATER	33.15	24.56	20.28%	3.02%	1.35	1.00	74%
21 Companies

Nasdaq 100 Watch List

It is the firm belief of the New Low Observer team that anyone who does not investigate and acquire at least one of these stocks is, in our opinion, missing the sale of the decade. While the debate about nationalized healthcare begins to wane, there will be a palatable realization that the medical sector was unduly suppressed. Below I will feature BIIB and GILD. However, let's look at the Nasdaq 100 stocks that are within 20% of their 52-week low.

Nasdaq 100 Watch List (Yahoo!Quote Summary View):

• Stericycle (SRCL) at $53.17
• Gilead Sciences (GILD) at $43.83
• Genzyme Corp. (GENZ) at $54.50
• Cephalon, Inc. (CEPH) at $54.02
• Biogen Idec (BIIB) at $43.81

Today’s watch list has the addition of Biogen Idec (BIIB). According to Valueline, BIIB has a historical mean price-to-cash flow of 12x. Based on the 2008 per share cash flow of $4.31, BIIB should revert, at some point, to the mean price of $51.72. At $43.81, BIIB is trading 18% below the mean price.

Below is the Coppock Curve for Gilead Sciences (GILD). The Coppock Curve is intended to provided the best risk-adjusted buy signal. If you review the price of the stock and have a short time frame, the buy signals were, at times, alarmingly accurate.

Using Yahoo!Finance's long term chart for GILD, we see the following prices for the above buy signals:

• May 1994 at $0.48
• Jan 1997 at $2.03
• Aug 1998 at $1.14
• July 2009 at $48.93

The fact that the stock trades below the July buy signal bodes well for those willing to investigate the qualitative elements of GILD. Touc.

Disclosure: Long CEPH

Dividend Achiever Watch List

The market was fighting hard at the 10,000 range but settled below that mark at the end of the week. The Dow gained 24 points (0%) this week. At the end of the week, my watch list expanded to 15 companies compared to 11 from the previous week. Here are the companies on my watch list as of October 23, 2009.

Symbol	Name	Price	P/E	% Yr Low	Yield	EPS	Div/Shr	Payout Ratio
SHEN	Shenandoah Telecom	16.81	26.68	1.63%	1.90%	0.63	0.32	51%
WMT	WAL MART STORES	50.44	14.79	9.06%	2.16%	3.41	1.09	32%
BCR	BARD C R INC	76.74	16.09	11.31%	0.89%	4.77	0.68	14%
WEYS	Weyco Group, Inc.	22.44	20.78	11.59%	2.67%	1.08	0.60	56%
WTR	AQUA AMERICA INC	15.89	20.37	13.50%	3.65%	0.78	0.58	74%
NWN	NORTHWEST NAT GAS	43.02	15.59	14.08%	3.86%	2.76	1.66	60%
PNY	PIEDMONT NAT GAS	23.72	15.30	14.70%	4.55%	1.55	1.08	70%
CAH	CARDINAL HEALTH	28.66	8.98	15.24%	2.44%	3.19	0.70	22%
BDX	BECTON DICKINSON	67.50	14.00	16.10%	1.96%	4.82	1.32	27%
MCD	MCDONALDS CP	59.43	15.76	17.82%	3.70%	3.77	2.20	58%
XOM	EXXON MOBIL CP	73.57	11.80	18.93%	2.28%	6.23	1.68	27%
T	AT&T INC.	25.73	12.74	20.01%	6.37%	2.02	1.64	81%
PGN	PROGRESS ENERGY	37.68	13.13	20.19%	6.58%	2.87	2.48	86%
RLI	R L I CP	51.11	23.66	20.23%	2.11%	2.16	1.08	50%
NJR	N J RESOURCES CP	36.02	13.70	20.27%	3.44%	2.63	1.24	47%

15 Companies

Speculation Observations: Mattson Technology (MTSN)

Mattson Technology (MTSN) is a supplier of equipment to Semiconductor producers (i.e. Intel). Some of their competitors are Applied Materials (AMAT), Lam Research (LRCX), and Novellus (NVLS). These are 2 billion dollar plus companies versus a 130 million dollar company. Market cap doesn't tell me anything about valuation of the company, so I would ignore that figure for now.

Macro View

When the economy recovers, people feel better and they go out and buy a computer from suppliers like Dell or HP. These computer suppliers then have to ramp up their production and order more computer chips from Intel or Samsung. A demand surge triggered Intel to boost production by expanding their production capacity by purchasing more tools from the likes of Applied Materials or Mattson. This is what generally happens when the economy recovery takes place.

Market Exposure

In 2008, 19% of MTSN revenue came from Canon and 10% came from Samsung (from 2008 Annual Report). Because 90% of MTSN's revenue comes from overseas, this company is truly international company. The largest market they served is memory, which is estimated to be around 70% of their revenue. As you may guessed from going to Fry's or Best Buy, USB memory sticks sell for next to nothing. It's appropriate that this market has seen a fair share of margin contraction (lower profit). This may be the reason why the share price of Mattson and its competitors who are exposed to memory got cut in half.

Valuation

Mattson is currently trading around the $2.50 to $3.00 range. They hold $1.56 cash per share and $2.24 book value. As a result, you have a tech company with NO DEBT, trading at roughly 1.2x book value. That fits Benjamin Graham's formula. Tangible book value (this exclude IP value) is at $3.16 at the end of 2008. Because the company has negative earnings and no dividends, we can only assess valuation based on book value. Using Morningstar valuation tool, you see that over the prior of 10 years, the average trough book value is 1.2.

Some of the things I am concern about are negative earnings for this year and the next, possible burn in cash flow, and market liquidity issues. The company traded as high as $11.76 in 2007 then dropped to $0.30 in 2008. Assuming that you bought at the low and sold at $2.50, you would have gained 700%+ on your money. Such extreme low valuation will not likely return because the credit market have recovered somewhat.

So how do I come up with a fair market value for Mattson? Simple calculation based on Dow Theory suggest a fair market price of $6.03. The calculation is simple, take the peak price of $11.76, plus the absolute low of $0.30, then divide it by 2. That's the fair market value based on the Dow Theory interpretation. The chart below shows a graphical representation of from the peak to the most recent trough.

What You Need to Buy?

If you plan on buying MTSN as a speculation, here are things you need.

• Strong and Healthy Heart for the up and down market. Don't be surprised if the price falls to $1.50 range.

• Money you can "throw away". This is a speculation at best, so make sure you can lose it and still be ok.

• Time. This company will need time to work through the current economic environment. It is safest to assume that the price will not revert to $6 simply because I wrote about it. The market will decide that.

Once again, this observation is on the deep end of the speculation pool. I've selected a stock that I believe has a lot more room on the upside but downside should be apparent based on the $0.30 low. Please do your homework and manage this speculation wisely.

Art

Disclosure: None

Nasdaq 100 Watch List

This week the New Low Observer highlights four companies in the Nasdaq 100 that are within 20% of their 52-week low.

• Cephalon Inc. (CEPH) at 3.56% above their 52-week low.
• Gilead Sciences (GILD) at 17.27% above their 52-week low.
• Stericycle (SRCL) at 17.76% above their 52-week low.
• Genzyme Corp. (GENZ) at 18.79% above their 52-week low.

Cephalon (CEPH), according to Valueline, normally trades at 12 times cashflow. The cashflow for CEPH in 2007 was $5.41 per share (Mergent’s, was $5.78 for 2007.) Using the smaller figure, we get a price of $64.92 as the average price that the stock has typically reverted to. As the number of shares for CEPH have increased by 11% since 2007, I have adjusted lower the cash flow per share by 11% as a rough gauge of what the historical average price would be at 12x cash flow. The figure that I come up with is $57.72. This is 5.71% above the current price of $54.42. Valueline sees the negative cashflow figures persisting until the foreseeable future. (I have intentionally left out the negative cashflow figures for 2008 because the economy was in recession for the whole year.)

Gilead Sciences (GILD), according to Valueline, should be trading at 20x cashflow. With a cashflow of $2.32 in 2008, GILD averages a price of $46.40. Although Mergent’s has a cashflow figure that is higher, I will go with the most conservative figure that I can find. At the current price of $46.17, GILD is trading at the historical cashflow. Maybe this is a fading star but GILD has never traded below 20x cashflow for an extend period of time.

Based on 2008 cashflow figures from Valueline, Stericycle (SRCL) would trade around the $38.18 range. The 2008 cashflow for SRCL was $2.19 per share. This is significantly above the mean, which makes these share less inviting even though they are within 18% of the 52-week low.

Finally we have Genzyme Corp. (GENZ) at $55.94. This stock has historically traded at 19 times cashflow. The 2008 cashflow for this GENZ was $2.82, according to Mergent’s (Valueline had the higher figure.) GENZ, although selling 19% above the 52-week low, is a far superior value proposition. The shares outstanding have grown by 2.7% from 2006 to 2008 while the long-term debt has fallen by 85% over the same time frame.

Additional analysis will be provided on these companies as long as they stay within 20% of the 1-year low. Touc.

Disclosure: Long CEPH

Dividend Achiever Watch List

The market put on a bull horn and marched passed 10,000 but settled below that mark at the end of the week. The Dow gained 130 points (1.3%) this week.

We're mid way through October and if you recall the same time last year, this marked the beginning of the market freefall. As a result, many companies with their low mark have been pushed up by the moving 52-week range. At the end of the week, my watchlist expanded to 11 companies compared to 9 from the previous week. Here are the companies on my watch list as of October 16, 2009.

Symbol	Name	Price	P/E	% Yr Low	Yield	EPS	Div/Shr	Payout Ratio
SHEN	Shenandoah Telecom	16.81	26.68	1.63%	1.78%	0.63	0.30	48%
BCR	BARD C R INC	76.19	15.98	10.52%	0.89%	4.77	0.68	14%
WMT	WAL MART STORES	51.22	15.02	10.75%	2.13%	3.41	1.09	32%
WEYS	Weyco Group, Inc.	22.40	20.74	11.39%	2.68%	1.08	0.60	56%
NWN	NORTHWEST NAT GAS	43.39	15.72	15.06%	3.83%	2.76	1.66	60%
CAH	CARDINAL HEALTH	28.68	8.99	15.32%	2.44%	3.19	0.70	22%
MCD	MCDONALDS CP	58.78	15.58	16.53%	3.74%	3.77	2.20	58%
PNY	PIEDMONT NAT GAS CO	24.19	15.61	16.97%	4.46%	1.55	1.08	70%
WTR	AQUA AMERICA INC	16.65	21.35	18.93%	3.48%	0.78	0.58	74%
BDX	BECTON DICKINSON CO	69.26	14.37	19.13%	1.91%	4.82	1.32	27%
T	AT&T INC.	25.70	12.72	19.87%	6.38%	2.02	1.64	81%
11 Companies

Dividend Achiever Watch List

The market snapped out of the downtrend with force this week. The Dow gained 376 points or 4% this week. At the end of the week, our Dividend Achiever watch list has 9 companies compared to 12 from the previous week. Here are the companies on our watch list as of October 9, 2009.

Symbol	Name	Price	P/E	% Yr Low	Yield	EPS (ttm)	Div/Shr	Payout Ratio
WMT	WAL MART STORES	49.97	14.65	8.04%	2.18%	3.41	1.09	32%
CAH	CARDINAL HEALTH INC	27.32	8.56	9.85%	2.56%	3.19	0.70	22%
WEYS	Weyco Group, Inc.	22.65	20.97	12.63%	2.65%	1.08	0.60	56%
BCR	BARD C R INC	77.94	16.35	13.05%	0.87%	4.77	0.68	14%
PNY	PIEDMONT NAT GAS CO	23.73	15.31	15.64%	4.55%	1.55	1.08	70%
NWN	NORTHWEST NAT GAS	42.43	15.37	15.90%	3.91%	2.76	1.66	60%
BDX	BECTON DICKINSON CO	68.75	14.27	18.25%	1.92%	4.82	1.32	27%
PGN	PROGRESS ENERGY INC	37.45	13.05	19.46%	6.62%	2.87	2.48	86%
MKC	MCCORMICK & CO	33.67	16.75	19.91%	2.85%	2.01	0.96	48%
9 companies

Becton Dickinson (BDX) is still on this list and the price hasn't move much since Buffett announced back in August that he took a stake in the company. It may be worth reconsidering BDX based on the current lack of "action." Art.

Note: Abbott Lab (ABT) is no longer on this list after being on it since this list began in June. I flagged you to ABT on 9/24/09 and the stock has gained 8.5% since.

A Second Look at Cephalon Inc. (CEPH)

Speculative Observation

It is just our luck that Cephalon Inc. (CEPH) did exactly what we thought would happened based on the chart pattern in our August 27, 2009 article. In that posting, we said that we thought that Cephalon would experience a price breakout starting on the September 5th. The bias that we had in the article was clearly in favor of a stock price rise in the breakout formation. Part of our justification for this was due in part, on the fact that CEPH was, according to our metrics, relatively undervalued. However, we didn't know when and by how much the stock would rise.

On September 21st, Cephalon rose to an intraday high of $69.30, far exceeding our expectations for the stock in the short term. Because this stock does not pay a dividend we could not make a recommendation of this company as an investment observation. It appears that the speculative observation that we gave was appropriate for the recent moves in the price. However, the stock is now approaching the 52-week low again.

Below are the revised figures for the Dow Theory downside targets (since the upside takes care of itself):

• $40
• $31.66
• $14.40
• $6
  

For the reasons above, we highly recommend that you re-consider the article written on August 27th. With a $4 billion market cap, this stock should be among your choices of new speculative opportunities. Art and Touc.

Nasdaq 100 Watch List

Northwest Natural Gas (NWN) at $40.94

As I attempt to gather as much information on Northwest Natural Gas (NWN) before deciding to actually buy NWN, I found one bit of information that was almost astounding. As I have mentioned before, NWN has increased it's dividend every year for 53 years in a row. I have also talked about the fact that NWN will probably do everything in its power to maintain that dividend increasing history. So it is no surprise that the company announced on October 1, 2009 that will be increasing the dividend for the 54th year in a row.

In today's research recommendation of NWN, I will cover the issue of cyclicality, the Coppock Curve, natural gas prices, and Dow's theory as it relates to the stock. I have compiled this information as I consider buying NWN. It is hoped that you thoroughly review NWN from all angles before committing any money to this accomplished Dividend Achiever.

When someone asks me about any cyclical stocks that I might be able to suggest, I often stammer at the thought. In fact, I'm clueless as any true cyclical stocks. However, after a considerable review of NWN, I can prove that it is definitely a true cyclical stock. First, NWN has exhibited a pattern of hitting a relatively low price between the months of January and May since 1970.

The stock hitting a low during the first five months of the year occurred 87% of the time. New lows during the months of February, March and April took place 78% of the time within the period from January to May. The month of February comprised 33% of the new lows between January and May. From the numbers that I ran, February and April are the most optimum month to consider buying this stock.

Next up is the Coppock Curve for NWN. In the chart below, you can seen that the Coppock Curve along with a 14-month trendline. After falling below the zero line, the rise crossing over the trendline indicated a ideal buying point on the first day of November 1994 at an adjusted price of $7.67. Subsequently, the stock reached an adjusted high of $16.74 in December of 1997.

The next point when the Coppock Curve was crossed by the 14-month trendline was in February 2000. If you bought the stock on the first day of March 2000 at the adjusted price of $12.70, you would have seen the shares rise to an adjusted price of $52.19 on September 18, 2008. The rise from March 2000 to September 2008 is in spite of the bear market which began in October 2007. Currently, NWN's Coppock Curve has just crossed above the 14-month trendline. All indications are that this is a buying point based on the Coppock Curve.

Next up is the natural gas wellhead price from 1977 to the present. In the chart below, I have indicated the points where, based on the Coppock Curve, the price crossed above the 14-month trendline. It appears that the Curve accurately called the bottom in the price, almost to the very lowest point possible. From this indication, it appears that the natural gas wellhead price is about to rise from here.

Finally, we'll look at the prospective upside and downside targets for NWN based on Dow's Theory.

Upside:

• $42.31
• $48.01
• $53.71
  

Downside:

• $36.20 (fair value)
• $30.30
• $18.50

All of the data points that I have mentioned should be included in your fundamental analysis of this stock. Pay particular attention to the downside targets since this is your best gauge of the risk you might be taking.

It appears that management feels confident about the prospects for the company down the road based on the most recent dividend increase. However, as the number of years of consecutive dividend increases ratchet higher the probability of a dividend cut increases. I am putting this stock on my personal watchlist so that I can buy it at the most optimal price, hopefully lower than the current level. Touc.

related Articles:

• NWN Altimeter

Please revisit Dividend Inc. for editing and revisions to this post.

Dividend Achiever Watch List

It was another down week for the Dow which gave back 175points (-1.81%) this week. At the end of the week, my watch list has 12 companies compared to 9 from the previous week. Here are the companies on my watch list as of October 2, 2009.

Recent Articles

Stock to Watch: Cardinal Health (CAH)

End of September Market Commentary

Gold Update

Market Topping Out?

Research Request: Mylan, Inc. (MYL)

Research Request: Mylan, Inc. (MYL)

A reader request that I do some research on Mylan (MYL) back on 8/7.  On that day, MYL closed at $13.19. Today, it closed at $15.59 which is 18% higher.  Since Mylan used pay dividend but halted distributions in 3Q07 (but kept preferred shares dividend), investor will be investing for capital gain basis. With that, my model is based on earning, cash flow, and book value. My knowledge of pharmaceutical is limited but you don't need to know everything about the business as long as you can place a valuation on a stock. Let's take a look at Mylan.

Mylan engage in the generic pharmaceutical market. They do everything from development, manufacture, marketing, licensing, and distribution of their products. Check out their website for more detail about Mylan.

After obtaining data from Valueline, my model shows that Mylan is approaching fair value of $21.75. My "bargain" price is at $8.25. Another price target is the "buy" price of $16. Given that Mylan is at $15.60, your risk is 47% (8.25/15.60 - 1) and upside of 39% (21.75/15.60 -1). Risk / reward analysis tells me to be a seller not a buyer at this level. Let's dive deeper and see if there are more reasons for me to be a buyer or seller.

A closer look at  the balance sheet revealed a concerning story. Mylan engaged in many acquisitions and I am not the one to tell you if they were in fact good or bad acquisitions. I do not have the ability or capability to estimate what those future cash flow or earning will be. What I do know is that due of those acquisitions, Mylan had to raise  debt and take hit to their cash flow and earning. Not a good combination. Their debt level was $30.6 million in 1999. That figure rose to $51.3 Billion (with a B) in 2009, a 67% increase on a compound annual basis. At the same time their cash flow rose 15%, earning rose 6%, and book value rose 8%.

Currently, Mylan is trading at 17x trailing P/E, 10x F P/E, and 1.7x P/B. It may appeared to be "cheap" but a large debt over hang scares me. Debt due in five years is $145 million. If Mylan doesn't make enough to pay back their debt, they would have to refinance their debt at a time when I expect the interest rate to be at a much higher level. While cutting common stocks dividend, the company kept preferred dividend, issued more stocks, and raised more debt. I can't see why this is good for the common shareholders. As stated above, if price fall to $8.25 then I may consider it.

This is just one man's opinion. To get additional analysis, I recommend you cross check my analysis with Morningstar (report can be obtain freely from your local library), S&P (I get that from TDAmeritrade), or Valueline.

Art

End of September Market Commentary

Today's action was a closed one for the market. The Transport index, at one point, broke below the previous high from late August. The Industrial is still well above the previous high so nothing to worry about there. If the Transport was to closed below the previous high, we would have the first part of the non-confirmation move under the Dow Theory.

Note: If you are not familiar with the Dow Theory, please read a free description from Dow Theory Letter or StockCharts, but I recommend reading Richard Russell's Letter.

Coppock Curve

At the end of September, the Coppock Curve or Index remained bullish. People who understand Coppock Curve my wonder why I still keep track of the curve since the buy signal was given to us in May. My answer is that I don't want to this to be a false buying signal such as the one in 2001. The curve rose by 53.8 points, the highest since buy signal was triggered.

Summary

I am cautiously bullish on the market. I am looking to purchase Northwest Natural Gas (NWN) and Cardinal Health (CAH). This will depend on what the overall market does when we start October.

Art

Stock to Watch: Cardinal Health (CAH)

Cardinal Health (CAH) is one of the leading wholesale distributors of pharmaceuticals, medical/surgical supplies, and related products to a broad range of health care customers. The company completed a unit spin-off, CareFusion (CFN), on 9/1/09. Any investors with shares of CAH at the end of August received 0.5 shares of CFN. As a result, CAH price was adjusted down to $25.11 on 9/1/09 from $34.58 on the previous day. Two weeks later, Goldman Sachs upgraded CAH to a "buy" rating from "neutral" with a target price of $31. The stock closed at $27.29 on that day.

I pitched Cardinal Health to my readers several times prior to this writing. The first was a simple technical look at this stock on 6/11, 7/11, and 8/20. What I saw then was a stock with great fundamental developing a strong technical pattern called "triple bottom". Today I pitch you Cardinal Health once again with the different view. If you purchased this stock without selling them as I did, you would have done very well. As an added bonus, you would've gained some shares of CareFusion which rose 10.5% since it began trading. So let's dig into the number.

Cardinal Health came back on my radar on 9/18 watch list as because it appeared to be within 20% from the yearly low. A closer look at CAH shows a revealing valuation proposition. CAH is currently trading at 1.11x book value, 12x Forward P/E, 6x Cash, and 2.6% dividend yield. The undervaluation appeared to be because of the split but CFN is also trading at a discount value when you see it is trading at 0.88x book value. CAH is estimated to grow 8.4% (based on low estimate) and with yield of 2.6% that is a good 11% return. The great thing is the top line revenue is expected to stay relatively flat which mean they will be more efficient.

Using dividend as an insurance against price decline, investors will be rewarded with $0.70 per shares or 2.6% yearly. With low earning estimate of $1.89 for 2010, the payout ratio is 37%. Taking the previous year dividend increase rate, I project that CAH will raise payout to $0.74 for 2011. Low end estimate is projected at $2.05 which brings payout ratio down to 36%.

My model shows CAH should be at $40 range but this is based on previous year results including figures from CFN.  Surely I could be wrong and price fall, but as a value investor, I will not get many chances to buy a medical company at or near its book value. Given that all CAH competitors (ABC, MCK, and OMI) are trading at more than 2.3x book value, CAH is deeply discounted at 1.1. My estimate shows any 1.95x book to be low end of CAH and that would bring share price to $47. A 74% gain! That is just crazy. I will probably re-buy this stock in the days ahead.

Art

Disclosure: All figures are from Yahoo! Finance as of 9/29/09

Dividend Achiever Watch List

The Dow gave back 153 points (-1.56%) this week. At the end of the week, my watch list has 9 companies compared to 8 from the previous week. Here are the companies on my watch list as of September 25, 2009.

Recent Articles

Stock to Watch: Abbott Laboratories (ABT)

Stock Checkup: Nacco Industries Inc. (NC)

Stock to Watch: Abbott Laboratories (ABT)

Abbott Laboratories (ABT) is a worldwide health care products provider. This $72.5 billion company, based on market capitalization, employs 69,000 employees worldwide. One of their well known products include FreeStyle, which is a blood glucose monitoring system. There are more products that ABT sell that I do not know but I am less concern about that. What struck me most about ABT is the valuation and its inability to move up during the most recent bull market run. This may be because upside momentum traders are trading name like Research In Motion (RIMM), Apple (AAPL), or Freeport McMoran (FCX). I'm just the opposite of a upside momentum trader, the less upside momentum, the easier it is for me to consider buying.

Fundamentals

Currently, ABT is trading around $47, has a price-to-earnings (p/e) ratio of 14, sells at 10x cash flow, and has a dividend yield of 3.4%. ABT is less than 15% above its one year low. My model shows ABT is undervalued with a dividend yield of 3% or 13 p/e, 10x Cash flow or below $49. I weight more valuation on dividend yield and thus I believe the shares are relatively undervalued at this price. One of the most impressive things about this company is their ability to raise the dividend by 11% in April. The dividend payout went from $1.44 to $1.60.

Technicals

The technicals are another aspect I pay strong attention to prior to buying any stock. I wrote about ABT's technical back on 6/8/09 and showed a possible reversal or head-and-shoulder pattern.

To follow up with what I am seeing today, I have drawn the chart below. Two strong pattern I see are the golden cross which is when short-term moving average crosses mid-term moving average and an ascending triangle.

Finally, in the chart below we have the altimeter for ABT. The altimeter really puts thing in perspective. As we can see, ABT has a low range at 103 and a high range at 171. In two prior instances, I have circled the areas where ABT went up and then fell back down before rising to a new overvalued level. Currently, ABT is either in the middle of another temporary rise before falling a little bit further or we could be in a full scale move straight to overvaluation. In either case, if you bought now, according to the altimeter, you wouldn't be overpaying for this stock.

I believe Abbott is at the right valuation and urge you to start looking at it. Do your research before committing your capital.

Stock Checkup: Nacco Industries Inc. (NC)

I wrote about Nacco Industries Inc. (NC) back on February 6, 2009 and March 13, 2009 when the stock was trading between the $20 and $40 price range. Please note that during the time of the write up, the market was going through a major breakdown. March 9, 2009 marked the low in the stock market.

My original article on NC was about its valuation. The company was trading at a ridiculously low valuation based on the book value (assets less liabilities) of $50. The stock was trading at $37.75 or 25% below book value. The dividend yield was 6%. At the time, my concern was the possibility of the dividend being cut and the significant amount of debt. My thesis was also on the prospects for inflation, which didn't really materialize.

On March 13, the company reported a loss of $51.69 per share. The headline might have scared some people but a closer look showed that things weren't so bad after all. Nacco was forced to take an impairment charge because of the extreme amount of the decline in the stock price. Here is a statement from the 4Q08 conference call.

Because the company’s stock price at year-end was significantly below the company’s book value of tangible assets and its book value of equity, accounting rules effectively required that the company take a non-cash write-off of goodwill and certain other intangible assets totaling $436 million or 431.6 million net of taxes of $4.1 million.

At one point, Nacco was trading a little more than a quarter of their book value ($14 stock price v. $50 book value.) For this reason, accounting rules forced Nacco to write down their asset value. Operations were fine and this change in the book value was just an accounting slight of hand.

So where are we?

Nacco is currently trading around $60 with a book value of $44.85 (1.38x book). The dividend for the last four quarters remained unchanged ($0.5175) and is currently yielding 3.4%. With negative earnings, they are paying their dividend ($4.3 million/qtr) through existing cash of $178.80 million. With large amount of debt and low earnings, we will have to see how Nacco navigate the coming hard times. I expect the dividend to remain unchanged or for the company to raise it by a small amount.

If you purchased this stock based on my writing, I would recommend taking your profits. The risk of the dividends being cut remains a factor at this time. On the upside, if you choose to hold this stock, a possibility of write-up does exist. Those non-cash write-down in fourth quarter could be a catalyst for a NC to pop back to $80 or $100. You have to decide for yourself if you are brave enough to hold on after such nice gains.

The charts below show where NC was and where it is.

I all my writing, I urged readers to consider the technical pattern. In this case, I recommended buying if, and when, NC broke above $41. I didn't act on my own advice because my attention was diverted to other companies. We will have to see where NC goes from here. For now, let's take the easy money.

Art

Dow Theory

November 4, 2008 is proving to be a significant challenge for the stock market. I have mentioned many times the considerable amount of resistance that November 4th would have on the The Dow Industrials and Dow Transports. However, if viewed from the perspective of a composite index, an index that includes all the stocks in the Dow Industrials, Dow Transports and Dow Utility Indexes, we get a picture that is undeniably negative in the short term.

In the chart below, we see a one year diagram of the Dow Jones Composite index of 65 companies. The composite index briefly exceeded the November 4, 2008 high of 3407.33 by only 1.82 points on September 16, 2009. It is important to know that the high for the day of September 16, 2009 did not exceed the high for the day of November 4, 2008. The fact that the market cannot go above November 4, 2008 so far has much broader implications than just in the financial arena.

Since the September 16th peak the Dow Jones Composite Index has traced out an interesting pattern lower. This same pattern could not be seen if you looked at any one of the individual indexes alone. In the chart below, we can see where the next destination might be for the markets on the downside.

The following are the prospective downside targets for the Dow Jones Composite Index as represented in the inverted chart above:

• 3293.86-A
• 3185.02-B
• 3151.72-C
• 3125.28-D
• 2812.05-E

Why have I inverted the chart of the index? Because there is uniform agreement among all great Dow Theorists that calling a peak is the most challenging thing to do. It is the nature of humans to be positive, otherwise most progress isn't possible. With the chart showing a bottom instead of a peak we can feel comfortable seeing the prospects for the future. In terms of Dow Theory, the inverted chart allows us to see a bear market from the same context that we can see a potential bull market.

Now, to play further mind games on you, I recommend that you look at the most recent trend of the Composite Index. After posting above the 3407.33 on September 16th at 3409.15, the market has exhibited two lower peaks on the September 18th and September 22nd. This indicates that a market breakdown to the 3293.86 level (point A) is a probability.
The declines that I have mentioned are in the context of a cyclical bull market within a larger secular bear market. Any of the declines that I have pointed out are all acceptable and constructive for a bull market. Soon after the declines are out of the way we can expect that the market will retest the old high before going higher (both Transports and Industrials) or confirming the previous declining trend.

If you have questions or thoughts then please email me at the following link.

Please revisit Dividend Inc. for editing and revisions to this post.

Northwest Natural Gas (NWN) Altimeter

Today's altimeter is on Northwest Natural Gas (NWN) and there is a lot to appreciate when we exam the pattern that has been established so far. NWN has increased its dividend for 53 years in a row. With such a history of dividend increases, I think NWN will do everything it can to avoid cutting or leaving the dividend the same. At the price of $42.29, NWN is within 16% of the 52-week low.

NWN has a challenging altimeter to decipher until you take a closer look. The pattern that has been established since 2000 until the present is an exact replication of the move from the period 1995 to 1997 (shown in the inset.) After the 1995 to 1997 moves we can see that the stock traded in a wide range until the ultimate low in 2000. From the 2000 low the stock traded in a narrow ascending range, offering several clear opportunities to buy and sell the stock.

Although I have taken artistic license on the interpretation of this altimeter, I do believe that the possibility may exist that NWN will not go materially below the March 2009 low. With the recent decline in natural gas prices, NWN offers a reasonable investment opportunity with a long history of dividend increases and a fair payout ratio. NWN is definitely worth investigating at the current levels. Let us hope that the stock price declines while you're doing the research on this company. Touc.

Please revisit Dividend Inc. for editing and revisions to this post.

Weyco (WEYS) Altimeter

Below is a chart of the Weyco (WEYS) altimeter. As we can see, WEYS trades in a range between 275 on the high end and just above 150 on the low end of the range. Given WEYS balance sheet and the products that it produces (Florsheim shoes) this company is worth investigating.

One consideration is the fact that WEYS has tremendously low trading volume. Additionally, this stock has only increased its dividend 10 years in a row which means that we can't be sure that the company can weather an true economic cycle. However, as mentioned before, this company has no debt and my be worth a second look. Touc.

Bank of Hawaii (BOH) Altimeter

The chart below is a representation of the Bank of Hawaii (BOH) altimeter. BOH has increased its dividend every year for 31 years in a row. As we can see, BOH's altimeter has been in a rising trend for quite some time.That trend was recently broken during the recent banking crisis.

The channel that BOH has managed to fluctuate within suggests that the stock is overvalued at the high end and undervalued at the low end. The period of extreme overvaluation is reflected in 2003 and started to move in a declining trend to undervaluation when BOH increased the dividend from $0.19 to $0.30.

There are two periods of extreme undervaluation in the altimeter. The first level of extreme undervaluation hit bottom in October 2000. The second period was most recently in March of this year. If the stock were to go back to the "historical" low end of the range, BOH would be priced at $54 a share. Although we do not have an extensive history on the periods of extreme undervaluation, it could be inferred that, based on the altimeter, an investment in BOH while not risk free, could be considered low risk.

At least one hitch to my assessment on BOH, in terms of the altimeter, is the fact that the low in March 2009, around the 60 level, could be part of a normal low range that is being established for the stock. If the 60 level is the low end of a new long-term range, my best guess is that the 110 level is the upper end of the range. At the 110 level, BOH stock price would be $49.50.

Only time will tell whether the escalating failure of banks is going to spread even further. However, BOH has managed to fare better than most banks of a similar size. As a further indication of BOH's strength, the dividend increase in November 2008 suggests that management believes the company will survive through the present banking liquidation cycle. Regardless of BOH's strength, I wouldn't be surprised if BOH does not increase the dividend in November. However, if a cut in the dividend takes place then I would be more cautious on the company and the stock. Touc.

related articles:

• Bank of Hawaii Tops List (9/14/2009)
  
• Sell Bank of Hawaii at the Market (8/6/2009)
  
• Bank of Hawaii Update (2/7/2009)
• Research Recommendation: Bank of Hawaii (BOH) at $37.76 (1/12/2009)
  

Please revisit Dividend Inc. for editing and revisions to this post.