Jim's
rating on
this stock

STOCK
SYMBOL

Closing
price that
day

Full Company Name & Jim's Comments:

na

na

Mad Mail question:

General Question...

Q:    Everyone seems to be talking about mortgage modifications including principal write-downs. I would like to know how they plan to accomplish this. many of these mortgages are wrapped up in securities that have been sold many times over and nobody seems to know who owns them. Doesn’t the owner of a mortgage contained in a security they have purchased need to agree to a reduction in the principal value of their underlying investment?
  --  Mark

Jim:    Mark, you have hit upon the single biggest reason why we haven’t stopped this process.. because you are exactly right… the owners of these CDO’s have the right… and so far to date they have done a lot of blocking of the ability to be able to change principal… we fix that we get to a lot of the bottom of it… 80% of the loans are locked into this junk… thanks for bringing it to our viewers attention… once again, our viewers are smarter than the average Vermont Teddy Bear.

MRO

27.00

Mad Mail question:

Marathon Oil Corp. (MRO)

Q:    Marathon Oil recently announced they no longer plan to split their E&P and Refining businesses into separate companies. Do you consider MRO a “trade” whose thesis no longer applies? Would I be better off consolidating into BP for their notoriously BIG dividend or continue to hold a little of each for diversification?
  -- Stephen

Jim:    Stephen, I like BP plc (BP*), you know I own that for ActionAlertsPlus.com, my charitable trust… it does have an absolutely great yield… you know Marathon said they put it off… I think if Marathon is approached by some one they would buy it… I think the Chinese are on the prowl to buy an oil company… in the meantime, 4% yield and a decent earnings profile.

BP*

43.85

BP plc (BP*)

See MRO comments above for:
BP*

V

55.95

Mad Mail question:

Visa Inc. (V)

Q:    First, I have to say you are so good looking! Now, my question: how do you feel about Visa Inc. (V) these days? I got in at its IPO at $49 a share, then again months later at $85. Your thoughts? By the way, how do you feel about younger women?
Thanks,
   -- JB

Jim:    Man, I am momentarily stunned… don’t try to win me over… I like Mastercard more than Visa… we don’t care where a stock is coming from … we care where it is going to… you paid too high for the second lot… my take on Visa is fine… Mastercard is better… and younger women… dynamite.

MA

161.90

Mastercard (MA)

See V comments above for:
MA

na

na

Mad Mail question:

General Question...

Q:    Why do financial reporters continue to use the Dow Jones Industrial Average as a milestone? It appears that this index has outlived its usefulness as it only contains 30 stocks, which seem to be of dubious importance in the marketplace. I am a dinosaur who watches your program every night and wonders why the older generation and their portfolios do not appear to be represented.
  -- Don

Jim:    I have got to tell you something Don, you are right… I too have fallen way too long on the Dow… because that is my, I am not that young… and I always think of it as the market… it should be the S&P… when I was a hedge fund manager… I always compared myself to the Standard & Poors… because it is a much better benchmark.

SGR

29.24

Mad Mail question:

Shaw Group Inc. (SGR)

Q:    While recently watching the CEO of Shaw Group Inc. (SGR), I found out that regulated companies seem to be doing well and his business specifically is hiring for the next 2 years. So, when are we going to see more regulation on Wall Street so that more companies can do well? In your opinion, at around $30, is this going to be a ceiling for SGR or a new bottom?
  -- Grant

Jim:    Grant, I don’t like the market… it doesn’t have a good yield… it does have a lot of cash… and it did have a great quarter… regulation on Wall Street… Wall Street owns Washington despite whatever you hear… there will be no new regulations that I have… yet to speak of… prosecutions maybe… regulations I doubt it.