July Update

Stocks of interest are;

 CMI (Cummins), manufacturer of diesel/nat gas engines, 130.50/share, PE 13.96, div yield 3% (after dividend raise), est 3 yr eps growth 11.23%, payout ratio 32%, DGR 20-25%-source yahoo finance. jmc sold put option on 7/16.

COP (Conoco Phillips), oil E and P, 57.95/share, PE 14.4, div yield 5% (just raised).

GE(General Electric), manufacturer medical equipment, jet engines, 27.04.share, forward PE 17.45, div yield 3.5%, est 5 yr eps growth 7.96%

GILD (Gilead Sciences), biopharmaceutical, 118.85/share, forward PE 10.75, div yield 1.5%, est 5 yr eps growth 20.6%

Jason Zweig

"The market is a pendulum that forever swings between unsustainable optimism (which makes stocks too expensive) and unjustified pessimism (which makes them too cheap). The intelligent investor is a realist who sells to optimists and buys from pessimists."- Jason Zweig