The November edition of Donald Coxe’s Basic Points research report (subtitled “The Power of Zero”) has just been published. His investment recommendations, as summarized in this document, are listed in the paragraphs below, but I do recommend you also read the full report at the bottom of the post. (Also note that Donald’s weekly webcasts can be accessed from the sidebar of the Investment Postcards site.)

1. Remain underweighted in US equities-as a percentage of total equities within global portfolios, and as a percentage of assets in US balanced portfolios. Underweight US bonds in global portfolios.

The Obama long-term financial projections for the US are high risk and unsustainable. Forthcoming elections-or a currency crisis-could induce some discipline, but within the OECD, the US should probably no longer be accorded top ranking for bonds and stocks.

2. Within the US market, underweight US economy-related

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New York-based Tower Group Inc. (TWGP) has completed the acquisition of Illinois-based specialty insurer, Specialty Underwriters' Alliance Inc. (SUAI). The deal, which was previously announced during Jun 2009, cost $107 million for Tower. All the conditions contingent to the closing of the deal have been met.   The acquisition will enable Specialty Underwriters to better leverage and expand its independent general agent distribution network. The deal will allow Tower to create a separate underwriting and operational infrastructure dedicated to specialty business to take advantage of the growth opportunities in this area. The acquisition also gives Tower a Midwest regional office to support continued geographical expansion. By utilizing Specialty's underwriting staff to offer products to wholesale and retail agents in the Midwest, Tower would also expand its brokerage insurance business in a region where it did not have an operating presence. By fully leveraging the operating platform and ...

Windstream Corp. (WIN), a leading rural telecom carrier, reported operating results for the third quarter with adjusted earnings per share of 24 cents, exceeding the Zacks Consensus Estimate of 21 cents. Adjusted EPS excludes one-time items such as restructuring charges, merger and integration costs and non-cash pension expense.   Reported net income of $80 million (18 cents a share) reflects a 24% year-over-year decline on account of lower revenues, which declined 8% year over year to $734 million.  Service revenues fell 5% year over year to $704.9 million while product revenues declined 44% to $29.4 million. Average monthly service revenue per customer remained stable year over year at $79.99. Operating income declined 17% year over year to $225.4 million.   Windstream continues to experience steady decline in its fixed-line business given the rapid customer migration to cellular services. Total access lines declined by roughly 27,000 lines in the quarter

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Dynegy Inc. (DYN) has reported a net loss of $212 million, or 25 cents per share in the third quarter 2009, compared to a net income of $605 million, or 72 cents per share in the year-ago quarter. The net loss in the reported quarter was primarily driven by asset impairment charges and mark-to-market losses. The company recorded mark-to-market losses of $128 million ($78 million after tax), compared to mark-to-market gains of $889 million ($542 million after tax) in the year-ago quarter.  In the reported quarter, however, adjusted earnings rose to $388 million, compared to $269 million in the year-ago quarter. The growth was primarily driven by the sale and assignment of a multi-year power sales contract, higher capacity and tolling revenues and higher realized energy prices in the Midwest.  On the revenue front, the company witnessed a slide by more than half, to $673 million ...

Marathon Oil Corporation’s (MRO) third-quarter 2009 results came in better-than-expected, helped by the contribution from increased oil and natural gas production. Earnings per share, excluding mark-to-market and divestment losses, came in at 61 cents, above the Zacks Consensus Estimate of 56 cents. However, as has been the case with the other oil majors that have already reported -- Exxon (XOM), ConocoPhillips (COP) and Chevron (CVX) -- earnings and revenue comparisons with the year-earlier period were quite ugly, severely hampered by lower realized commodity prices and weak refining margins. Marathon’s adjusted earnings per share plunged 77.9%, while sales declined 37.9% to $14.5 billion. Lower Prices More Than Offset Increased Upstream Volumes Income from the upstream segment totaled $491 million during the quarter, down 43.5% from the year-ago level. The company reported production (available for sale) of 393,000 oil-equivalent barrels per day (BOE/d), ...

Coventry Health Care, Inc. (CVH) reported third quarter earnings of 66 cents per share, which was above the Zacks Consensus Estimate of 54 cents. The company earned 73 cents in the year-ago quarter. Total operating revenues for the reported quarter increased 17.8% to $3.44 billion from the previous year's $2.92 billion.  Revenues from managed care premiums rose 20% to $3.15 billion, while revenues from management services decreased to $290.9 million from $298.4 million a year earlier. Due to reduced commercial risk and commercial management membership, total enrollment in Coventry plans increased 0.55% to 5.24 million members, mainly on gains in the Medicare D prescription drug program. The membership in that program increased 81,000 from the prior quarter. Total operating expenses for the quarter came in at $3.29 billion, up 18.6% from the year ago quarter. Medical costs, the major operating expense component, rose to $2.66 ...

Dr Stock Pick HOT News & Alerts!

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Tuesday October 20, 2009

DrStockPick.com Stock Report!

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NEW YORK, Oct. 20 /CRWENEWSWIRE/ — Deloitte today released the 2009 Technology Fast 500(TM), an annual ranking of the fastest growing technology, media, telecommunications, life sciences and clean technology companies in North America based on five-year fiscal revenue growth. ReachLocal, a global provider of localized internet advertising solutions, achieved the coveted top spot on the list with 2008 fiscal year revenue of $146.69 million and a five-year fiscal growth rate of 146,050 percent. The company is privately held and based in Woodland Hills, California.

“Deloitte’s Technology Fast 500(TM) identifies some

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Early this morning, Coventry Health Care Inc. (CVH) announced that it has agreed to acquire Preferred Health Systems, Inc. (commonly referred to as PHS), the wholly-owned health insurance subsidiary of Via Christi Health System, Inc.  PHS is based in Wichita, Kansas. It is a commercial health plan whose beneficiaries include more than 100,000 members for whom it assumes full insurance risk, and 20,000 members for whom PHS provides administrative services. The acquisition of PHS will further widen the customer base of the diversified national managed healthcare company in the Midwestern United States.  The transaction, expected to close in the next 90 to 120 days, will not affect Coventry ’s earnings in the first year.  PHS was incorporated in 1993 following strong support and encouragement from area physicians, St. Francis Regional Medical Center and St. Joseph Medical Center , which merged to form Via Christi Health ...

Dominion Resources, Inc. (D) has asked the Federal Energy Regulatory Commission (FERC) to start pre-filing process for its Appalachian Gateway Project. The proposed project will transport natural gas produced in West Virginia and southwest Pennsylvania to storage fields and pipelines in Pennsylvania. The Appalachian Gateway project will cost around $600 million. Dominion expects to start construction work in 2011 and commence commercial operation in 2012. The project is fully subscribed by Marcellus Shale and other Appalachian natural gas producers. The total firm transportation delivery is estimated to be nearly 484,260 dekatherms of natural gas per day.  Dominion will build four new natural gas compressor stations and upgrade two existing compressor stations, which will add about 17,000 horsepower of compression capacity. Around 110 miles of new pipeline will be constructed under the project, which will start at West Virginia and end at Dominion and Spectra's jointly owned ...

Regional banks are not often highlighted in the Zacks #1 Rank Top Performers commentary, but nobody told First Midwest Bancorp, Inc. (FMBI). With a share price gain of approximately 10.5%, the company makes the list to start off the week.

< ?DART(15);?> FMBI is a multi-bank holding company engaged in commercial banking, trust, investment management, insurance, mortgage origination and servicing activities.

It is 1 of 3 companies from the Banks-Midwest industry on today's 224-stock Zacks #1 Rank List. The other 2 companies are Princeton National Bancorp, Inc. (PNBC) and Wintrust Financial Corporation (WTFC).

Today, the company received a brokerage upgrade to "outperform" from "perform". Volume today is at 753,000 shares, which is above the daily average of 461,000. Meanwhile, on Friday FTBI announced a debt exchange offer that will allow it to retire nearly $69 million in debt.

Earnings

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