Mayor’s Picks - March 2008

Sometimes the stock market will drive you crazy. It’s up 300 points one day only to lose 400 the next. That’s the roller coaster ride we’re going to be in for thru this summer I think. There’ll be good economic data, bad housing data, rate cuts, job loses and no one will know what sense to make of it. So this month I’m focusing on companies who are in the crapper but don’t have a real reason to be there. If your earnings grow and you’re not in banking or housing there’s no reason to jump off a cliff after all. A quick recap of my pick performance on previous picks.

1 Month Return -9.85%, S&P -1.52%

2 Month Return -4.59%

3 Month Return -18.41%

4 Month Return -7.53%

5 Month Return -19.19%

6 Month Return -17.70%

7 Month Return -10.21%

8 Month Return -15.38%

9 Month Return -12.47%

10 Month Return -1.00%

11 Month Return +3.81%

12 Month Return +9.50%, S&P -4.14%

STOCK SYMBOL (Current Price, Monthly % Change) - Rating - Comments

AAPL (133.27, +6.93%) - Buy - The story on Apple hasn’t changed in the last few months. They’ll invest their way through any hard times just like they did a few years ago and come out better for it. I’d expect an upgraded AppleTV before summer’s end which will grow this platform into Apples next big seller.

HMC (27.80, -8.16%) - Buy - Even though the rough economic period upcoming will slow down vehicle sales no company is better positioned than Honda for coming high fuel prices. The upcoming announcement of a new hybrid should also give the company a boost. And don’t forget about their new airplane and fuel cell vehicle going on sale this summer.

MMM (77.98, -2.46%) - Buy - 3M is diversified and global. Two things helping them right now. Diversification will make the economic downturn more bearable and the lower value of the dollar will actually help 3M’s earnings top estimates again. With a P/E around 13 this company is a great buy right now.

LVS (76.96, -13.45%) - Buy - Las Vegas Sands has been brought down along with all of the other casino stocks lately but they’ve got a growth story unlike any company I’ve seen. Their casino in Singapore will be their crown jewel when it opens in 2009. If you want to talk about a company spending through bad economic times this is the company.

BRK-B (4347.88, -9.32%) - Buy - Consistency is the one thing you can expect from Warren Buffett and Berkshire Hathaway. They’ve got a great portfolio and you can expect Buffett to invest big time in under valued companies in this down market. This is probably the safest investment in the market right now.