Stock Watch — 05/31/2007

May 31st, 2007 - - Filled in: Stock Watch

As I sit back and watch Qwest Communications International Inc. (NYSE: Q) and Star Gas Partners (NYSE: SGU) surpass my “greed meter” at 21.06% and 22.76% returns, respectively, I can’t help but notice the few stocks that remain flat. With the first day of summer approaching (June 21st), we may take advantage of some last minute spring cleaning. For now, each of these stocks looks good enough to hold on to through the 2nd quarter. The chart below shows gains as of today’s close versus those of the last Stock Watch report.

Symbol	Last Trade*	Shares	Price Paid	Gain (thru 05/21)	Gain (thru 05/31)
AGII	$33.13	100	$33.12	2.36%	0.03%
COH	$51.36	100	$51.40	-5.49%	-0.08%
DEO	$85.39	100	$78.37	7.23%	8.96%
DOW	$45.38	100	$40.02	14.74%	13.39%
FMS	$49.09	100	$50.01	-1.74%	-1.84%
GPX	$10.66	100	$9.38	8.21%	13.65%
KCI	$50.18	100	$46.90	4.84%	6.99%
MOT	$18.19	100	$18.16	4.07%	0.17%
Q	$10.29	100	$8.50	17.76%	21.06%
SGU	$4.80	100	$3.91	20.20%	22.76%
SIFY	$8.55	100	$8.41	0.36%	1.66%
SIX	$6.19	100	$5.97	2.01%	3.09%
YHOO	$28.70	100	$26.87	9.23%	6.81%

*Price as of market close on 05/31/2007. Past performance does not guarantee future results.

A Qwest For Success
Nevermind that Qwest Communications is up 21.06%, it still has room to go higher. Today it announced that it was one of five telecoms to win a piece of a government contract worth up to $20 billion just weeks after it was one of only 3 telecoms awarded the largest such contract for $48 billion. If the U.S. General Services Administration (GSA) has faith in this company to deliver its services effectively, then so should you. The company continues to improve the strength of its balance sheet, and it is now making money on the bottom line…for the fifth straight quarter to be exact. Some analysts also believe Qwest is a very strong candidate to be acquired.

Fresenius Remains Strong and Healthy
Fresenius Medical Care (NYSE: FMS) reported its 1st quarter 2007 financial results earlier this month. Keep in mind that the operations of Renal Care Group are included in the Companyâ€™s consolidated statements of income and cash flows from April 1, 2006. However, Net Income increased by $160 million, or 38%, and North American revenue increased by 37% to $1,637 million, $1,483 million of which came from Dialysis Services. The company had planned a May 15th announcement of a 1:3 stock split…and it was approved. In addition, Fresenius shareholders unanimously approved a 15% increase in dividends, the 14th consecutive increase. At this point, you may consider waiting until the split occurs to get into this one. The split should take place sometime during the 3rd quarter.

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