One of my wonderful friends, Ms. P, asked me for some guidance on how she might allocate $50,000 currently earning peanuts in a money market account. Though she is decades from becoming a grandmother, after a brief discussion about her financial parameters, it became clear to me that she was looking for a "granny fund."

In reality, my recommendations would be suitable, and perhaps desirable, for many passive investors as well.

The $50,000 is a portion of money Ms. P has set aside to purchase a home, which might happen in six months, but could also be pushed out further, depending on the economy and her situation. Basically, she wants to cover all her bases because she might need the money at any time and does not want to be caught short, while at the same time she would like to generate some revenue without taking any big risks.

Continue reading Where should granny put $50,000?

Where should granny put $50,000? originally appeared on BloggingStocks on Fri, 09 Oct 2009 15:40:00 EST. Please see our terms for use of feeds.

Here are some highlights from last week's earnings coverage from BloggingStocks:

• Activision Blizzard Inc. (NASDAQ: ATVI) shares rose after it reaffirmed its full-year earnings and sales outlook.
• Automatic Data Processing Inc. (NASDAQ: ADP) will have low double-digit EPS growth, predicts one analyst.
• AutoZone Inc. (NYSE: AZO) posted a decline in earnings but a small rise in sales, sending shares lower.
• Bed Bath & Beyond Inc. (NASDAQ: BBBY) posted better-than-expected Q2 earnings and higher revenue.
• CarMax Inc. (NYSE: KMX) rallied to a new 52-week high after topping analysts' Q2 earnings expectations.
• Carnival Corp. (NYSE: CCL) reported better-than-expected Q3 results and raised its full-year guidance.

Continue reading Earnings highlights: AutoZone, Carnival, CarMax, ConAgra, General Mills, RIM ...

Earnings highlights: AutoZone, Carnival, CarMax, ConAgra, General Mills, RIM ... originally appeared on BloggingStocks on Sat, 26 Sep 2009 13:10:00 EST. Please see our terms for use of feeds.

Continue reading As payrolls go, so goes ADP

As payrolls go, so goes ADP originally appeared on BloggingStocks on Fri, 11 Sep 2009 15:20:00 EST. Please see our terms for use of feeds.

Continue reading Serious Money: Five more high yield, safe, diversified stocks -- Part 2

Serious Money: Five more high yield, safe, diversified stocks -- Part 2 originally appeared on BloggingStocks on Tue, 14 Jul 2009 13:00:00 EST. Please see our terms for use of feeds.

• Citigroup upgraded Amazon.com (NASDAQ: AMZN) to Buy from Hold on expectations the company's top-line growth rate could be more sustainable than expected and its operating margins could recover given due to less retail discounting. The firm raised its price target on shares to $97 from $65.
  
• UBS upgraded King Pharmaceuticals (NYSE: KG) to Buy from Sell based on expectations that Sandoz will settle patent litigation regarding Skelaxin after last weeks settlement of Clarinex with Schering-Plough (SGP).
  
• Jefferies upgraded Reliance Steel (NYSE: RS) to Buy from Hold as it believes steel prices and demand are close to near-term bottoms. The firm raised its target on the stock to $44 from $25.
• Palm (NASDAQ: PALM) was raised to Buy from Neutral at Banc of America/Merrill.
  
• Nestle (OTC: NSRGY) was lifted to Neutral from Underweight at JP Morgan.
• Johnson & Johnson (NYSE: JNJ) was upgraded at Wachovia to Outperform from Market Perform.

Continue reading Analyst upgrades, downgrades and initiations: AMZN, RS, JNJ, NFLX ...

Analyst upgrades, downgrades and initiations: AMZN, RS, JNJ, NFLX ... originally appeared on BloggingStocks on Mon, 20 Apr 2009 12:00:00 EST. Please see our terms for use of feeds.

• RBC Capital believes software stock fundamentals have bottomed and that the next several quarters should see reduced earnings risk, easier comps, stimulus spending benefits, and lower FX headwinds. The firm upgraded Microsoft (NASDAQ: MSFT), Taleo (NASDAQ: TLEO), Digital River (NASDAQ: DRIV) and Symantec (NASDAQ: SYMC) to Outperform from Sector Perform.
  
• Rodman & Renshaw upgraded Provectus (OTC: PVCT) to Outperform from Market Perform. The firm has increased conviction in the success of the company's ongoing trial of PV-10 in melanoma.
  
• Citigroup upgraded shares of American Express (NYSE: AXP) to Hold from Sell as it believes the risk/reward is balanced at current levels and that there are signs of potential credit market stabilization. The firm raised its price target on shares to $16 from $9.
• Brinker (NYSE: EAT) was upgraded to Outperform from Market Perform at Wachovia.
  
• PG&E (NYSE: PCG) was raised to Outperform from Neutral at Credit Suisse.
  
• Federal-Mogul (NASDAQ: FDML) was lifted to Conviction Buy from Buy at Goldman.

Continue reading Analyst upgrades, downgrades and initiations: MSFT, AXP, RBS, FIATY, NFLX ...

Analyst upgrades, downgrades and initiations: MSFT, AXP, RBS, FIATY, NFLX ... originally appeared on BloggingStocks on Tue, 07 Apr 2009 10:50:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Dow back above 8,000; AIG, ADP, HOG, MRK, SNDK, UPS

Closing Bell: Dow back above 8,000; AIG, ADP, HOG, MRK, SNDK, UPS originally appeared on BloggingStocks on Tue, 03 Feb 2009 16:17:00 EST. Please see our terms for use of feeds.

Continue reading Martin Luther King: investing in dignity

Martin Luther King: investing in dignity originally appeared on BloggingStocks on Mon, 19 Jan 2009 14:31:00 EST. Please see our terms for use of feeds.

Continue reading 8 safe stocks to buy now, the end of dividends & best things to buy in bulk - Today in Money 11/11

8 safe stocks to buy now, the end of dividends & best things to buy in bulk - Today in Money 11/11 originally appeared on BloggingStocks on Tue, 11 Nov 2008 09:03:00 EST. Please see our terms for use of feeds.

Analyst upgrades:

• Baird upgraded Dicks Sporting Goods (NYSE: DKS) to Outperform from Neutral based on valuation.
  
• Home Depot (NYSE: HD) was raised to Market Perform from Underperform by Morgan Keegan.
  
• Southwest Airlines (NYSE: LUV) was upgraded to Outperform from Market Perform by Avondale.

• BMO Capital downgraded Hasbro (NYSE: HAS) to Underperform from Market Perform due to valuation and macro headwinds.
  
• UBS dropped Darden Restaurants (NYSE: DRI) to Neutral from Buy because of slowing casual dining trends.
• Goldman Sachs dropped Affiliated Computer (NYSE: ACS) to Neutral from Buy.
  
• Goldman also downgraded Automatic Data Processing (NYSE: ADP) to Neutral from Buy.

• CIBC initiated Nortel Networks (NYSE: NT) with a Sector Performer rating based on what they see as the company's limited growth and margin prospects.
  
• Needham initiated Juniper (NASDAQ: JNPR) with a Hold rating, citing valuation.
  
• Blockbuster (NYSE: BBI) was initiated with a Hold by Needham, which would like to see if the company's turnaround is sustainable before becoming more constructive on the shares.

Analyst calls: HD, LUV, HAS, DRI, JNPR, BBI ... originally appeared on BloggingStocks on Tue, 19 Aug 2008 11:33:00 EST. Please see our terms for use of feeds.

"Any further market weakness creates creates another opportunity to acquire some outstanding stocks," suggests Kelley Wright, noted for his focus on blue chip, dividend-paying stocks.

In his Investment Quality Trends newsletter, he looks at the benefits of keeping a long-term focus, the value of dividend districutions to an investor's long-term returns, and his current "timely ten" picks for conservative investor.

"The cash dividend for the Dow is $322.40. One year ago the dividend was $284.06. Amidst all the turmoil in the markets and the economy something must be going right with the Dow 30 companies because the dividend is ever climbing.

"Dividends, as we all know, can only come from the reality of earnings; you can't pay what you don't have. The dividend yield on the Dow is currently 2.66%, which represents an 11% downside to a 3.0% yield and the historically repetitive area of Undervalue.

"Will the Average make it down to that level? No one knows but that isn't the point. At current levels the upside is FAR greater, particularly in many of the stocks in our Undervalued area.

Continue reading For blue chip buyers: 'This too shall pass'

For blue chip buyers: 'This too shall pass' originally appeared on BloggingStocks on Fri, 25 Jul 2008 11:30:00 EST. Please see our terms for use of feeds.

"As far as safety goes, Automatic Data Processing (NYSE: ADP) is hard to beat," says Gregory Dorsey in Leeb's Income Performance Report. Here's the advisor's review.

"In our search for stocks that can not only grow in good times, but will also hold up well when the going gets rough, we find ADP. Its steady cash generation means the company has a number of options at its disposal when it comes to maximizing shareholder value.

"ADP offers services including payroll processing, human resource benefits administration products and other outsourcing services. The stock's P/E, using expected year-ahead earnings, doesn't seem so cheap at 18. But relative to the company's long-term growth rate, it's quite reasonable. In fact, the stock is trading at its lowest valuations in more than a decade.

"And ADP's balance sheet has never been stronger. Management's confidence in the company's future recently prompted them to up the stock's payout by 26%. We see good things ahead for ADP as well.

"ADP has demonstrated a record of maximizing shareholder value. For instance, the company has a history of using part of its cash flow generation to repurchase its own stock. In the first quarter the company repurchased approximately 5.8 million shares, and it's likely to continue to buy back shares in the future."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

Automated gains from ADP originally appeared on BloggingStocks on Wed, 16 Jul 2008 10:47:00 EST. Please see our terms for use of feeds.

Continue reading Are we in for Bush vs. Carter, and what stocks would fare better under each?

Are we in for Bush vs. Carter, and what stocks would fare better under each? originally appeared on BloggingStocks on Wed, 11 Jun 2008 15:45:00 EST. Please see our terms for use of feeds.

• DJIA 13,051.36 (+41.36; +0.32%)
• S&P500 1,413.96 (+4.62; +0.33%)
• NASDAQ 2,476.14 (-4.57; -0.18%)
• 10YR-TBond 3.845% (+0.096)

Continue reading Closing Bell: The way the market churns...

Closing Bell: The way the market churns... originally appeared on BloggingStocks on Fri, 02 May 2008 16:16:00 EST. Please see our terms for use of feeds.

Next week is sure to be filled with fun and volatile market conditions. The highlight will be the Fed decision on key rates, due on Wednesday, April 30, following a two-day meeting. Anytime the Fed has the floor, the markets listen. Tuesday and Wednesday will be filled with speculation up until the time of the announcement of a cut or pause.

There are many possible outcomes for this meeting, as we have seen a substantial change in investor sentiment regarding the potential need for further rate cuts. The buzz on the street is for a cut of 25 basis points and then a wait-and-see attitude from there. I think that is the most likely direction.

There has been a great deal of concern that all the recent rate cuts have not provided the benefit to consumers the economy needs. Clearly, there is a fatty clog within our financial circulatory system. Traditionally, the Fed likes to see how its actions trickle into the economy before it continues too far down one path, which would argue for a pause now. Plus, the Fed does not want to run out of ammunition by cutting rates too far too fast. But there is no question that we are dealing with a more aggressive Fed than we have seen in decades, so I think we will see another small rate cut.

Continue reading The Week in Preview: All eyes on the Fed

The Week in Preview: All eyes on the Fed originally appeared on BloggingStocks on Sun, 27 Apr 2008 12:30:00 EST. Please see our terms for use of feeds.

Merrill Lynch downgraded PetroChina (NYSE: PTR) from "buy" to "sell," according to Briefing.com. The news service also reports that Credit Suisse upgraded Mastercard (NYSE: MA) from "underperform" to "neutral."

Rite Aid (NYSE: RAD) was raised to "overweight" from "neutral" at JP Morgan, according to 24/7 Wall St. The website also reports that Automatic Data (NYSE:ADP) was downgraded to neutral" from "buy" at Banc of America.

Early analyst calls: PTR, MA, RAD, ADP originally appeared on BloggingStocks on Tue, 26 Feb 2008 07:12:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Lehman upgraded the small-cap bank sector to Neutral from Negative as they expect the group to benefit from the decline in short-term interest rates and the steeping yield curve. The firm upgraded Associated Banc-Corp (NASDAQ: ASBC), Pacific Capital Bancorp (NASDAQ: PCBC) and Westpac Banking Corp (NYSE: WBK) to Equal Weight from Underweight.
  
• Friedman Billings added Waste Connections (NYSE: WCN) to its Top Picks list. The firm believes the company can outperform the group and overall market in an economic downturn.
  
• Warnaco Group (NASDAQ: WRNC) was upgraded to Overweight from Neutral at JP Morgan on valuation and growth potential.
  
• JMP Securities' checks indicate that Intersections (NASDAQ: INTX) is on track to meet EPS expectations for the quarter and is well positioned to beat their 2008 EPS estimate of 80c. The firm raised shares to Strong Buy from Outperform.

• Best Buy Incorporated (NYSE: BBY) and AutoZone (NYSE: AZO) were upgraded to Strong Buy from Outperform at Raymond James.
  
• The firm also upgraded shares of CBRL Group (NASDAQ: CBRL) to Market Perform from Outperform.
  
• JP Morgan upgraded Ruby Tuesday (NYSE: RT) and Plexus Corp (NASDAQ: PLXS) to Overweight from Neutral.
  
• Bear Stearns raised MFA Mortgage Investments (NYSE: MFA) to Outperform from Peer Perform.
  
• Goldman added Automatic Data Processing (NYSE: ADP) to its Conviction Buy List.

Analyst upgrades: Small-cap banks, WCN, WRNC and INTX originally appeared on BloggingStocks on Wed, 19 Sep 2007 10:50:00 EST. Please see our terms for use of feeds.

Commenting on the market's volatility, Kelley Wright says, "Damn the torpedoes and full steam ahead." He explains, "These events are what create value and have provided us with opportunity over the years to acquire outstanding companies at excellent price/yield levels. I suspect this time will be no different. Hang in there; this too shall pass."

In his Investment Quality Trends, Kelley Wright select stocks based on quality and yield. In his latest update, he says, "Whenever liquidity, the lifeblood of any market, is compromised, things can get ugly right damn skippy."

However, he remains optimistic for the long-term. He notes, "Fundamental measures of value are fundamental for a reason; they don't change with the whims of the day. The markets are a self-regulating mechanism that restores order when excess exceeds a sustainable level."

Meanwhile, he notes that he continues to recommend several blue chip equity. He says, "We have been long Barrick Gold (NYSE: ABX) in our model portfolio since 2003, when the stock traded in the high teens. We buy more every time it falls into our undervalued category, such as now. With the U.S. dollar under pressure, it makes even more sense."

The advisor also likes Automatic Data Processing (NYSE: ADP). He notes, "ADP is undervalued by our proprietary measures, has an S&P earnings and dividend quality ranking of A-plus, has had at least 10% annual dividend growth for the past 12 years and has a 55% or better return on equity."

In addition, he sees value in Colgate-Palmolive (NYSE: CL). He explains, :The stock also has a quality ranking of A-plus. It has also shown 10% annual dividend growth over the past 12 years. If things turn ugly, this stock should hold up nicely."

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.

Blue chips with quality and yield originally appeared on BloggingStocks on Tue, 07 Aug 2007 15:25:00 EST. Please see our terms for use of feeds.

If you earn a paycheck, chances are you know ADP. Automatic Data Processing, Inc. (NYSE: ADP) has a veritable lock on payroll processing contracts both in the U.S. and increasingly abroad.

Across the board, its 3Q 2007 numbers are up. With annual revenues of $7 billion, ADP has over half a million customers, some of them huge corporations. Revenue was up 14% to $2.2 billion or $.65 EPS, net earnings were up 16%. The company has close to $3 billion cash on hand, even after buying back $945 million worth of its stock thus far this year. At twice the size of its nearest competitor, ADP has a much lower than industry average P/E, 16.88, and EPS at least double that of its nearest competitor. It has built a wide moat around itself to make it difficult for competitors to enter the industry. At its recent close of $48.92, the stock is still quite affordable, and pays a quarterly dividend of $.23. All analysts ratings are upgrades on this stock this spring. Take a look at this one while it's still within budget.

ADP posted good 3Q numbers through both acquisition and organic growth. This quarter, ADP acquired outright Intuit's outsourced payroll business, which generated $12 million in revenue for ADP. ADP also sold Sandy Corporation, realizing $6.9 million in after tax profits. Likewise, ADP spun off its brokerage services unit in order to focus on its core business, payroll processing which was up 8% by volume in the US, with domestic revenue growth of 12%. New business grew 13% domestically and 12% worldwide. Post payroll processing revenue grew a whopping 23%.

More importantly, ADP expects this growth trend to continue into a very strong 4Q. ADP management has revised its FY guidance upwards to reflect these strong numbers. Revenue growth is now forecast at 13% and EPS will be at the high end of the range of $1.79-$1.83, a growth forecast of 20-23%. This is not a cyclical stock, nor a company with a complicated business model, nor does it market a niche product. Everybody needs a paycheck, and for the most part, those paychecks are cut by ADP. Investing in ADP may help take the sting out of all those deductions.

ADP: Thank God it's payday originally appeared on BloggingStocks on Fri, 15 Jun 2007 16:45:00 EST. Please see our terms for use of feeds.

Cramer's two financial service buyout picks originally appeared on BloggingStocks on Mon, 21 May 2007 19:50:00 EST. Please see our terms for use of feeds.