Stock Watch — 04/06/2007

Early this morning, the Associated Press [via Yahoo! Finance] reported that consumers confidence fell for the 2nd month in a row. Last month, we witnessed a cautious market that hesitated on the heels of the whole sub-prime worry.

It marked the second straight month that consumer confidence has declined. That drop comes as the national economy is stuck in a sluggish spell, mostly reflecting the troubled housing market. At the same time, prices for gasoline and other goods are rising, pinching peoples’ wallets.

As the article alludes to, the real worry comes as a result of uncertainty by our leadership. The weak job-approval rating of President Bush and the conflicting opinions of Fed Chairman, Ben Bernanke, and former Fed Chief, Alan Greenspan, are more reason to be concerned.

So What?
No worries. This was an excellent week for the stock market. The Dow went 6 straight sessions with gains, which is the longest since November 2006. In fact, just about every index was up since last Friday.

Derrich.com Stock Portfolio
The Derrich.com stock portfolio is up since we last looked at the results from March 26th when it was up 11.29%. As of the market close on 04/05/2007, the portfolio was up 13.44%.

The Ringers
Jones Soda (NASDAQ: JSDA) continues to push ahead. It rose from $22.00 on 03/26 to $25.54 yesterday. It also hit a new 52-week high on Wednesday of $26.17. The company announced on Monday that it would sell a new product with pure cane sugar versus high fructose corn syrup in conjunction with its goal to convert all of its products. The Company’s 2-year contract with Target expired at the end of 2006, and it now has a 5-year contract with National Beverage to manufacture and distribute the company’s canned soda to national retailers. With added exposure and reach, this stock is just getting ready to go.

Diageo (NYSE: DEO) rose 16.1% since 03/26. If everyone keeps worrying about the market like this, I predict a little extra drinking happening, which is great for Diageo. In fact, if you guys make money, I’m sure the celebration will call for…well, for drinks.

New Stocks On The Block
The Derrich.com Stock Portfolio welcomes 2 new stocks to the party: Fresenius Medical Care AG & Co. KGAA (NYSE: FMS) and Coach Inc. (NYSE: COH). Fresenius is a German kidney dialysis company that provides dialysis treatment at its own dialysis clinics (also in the United States), as well as produces and supplies a range of machines and disposables. This company has quickly become a major player in this niche, and I also like it since it pays a dividend [yield = 1.00%]. As far as Coach…well, you could pick just about any high-end clothing and accessories retailer. I almost chose Guess (NYSE: GES), which is up 125.8% in the last 12-month period…and it pays a dividend [yield = 0.10%]…but I like Coach. Every woman I know talks about nothing but Coach purses and wallets. And that’s it. And they’re not just talking about them. They’re buying them. If Jessica Alba likes them, then why shouldn’t you…well, the stock anyway.

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