Investor’s Health Weekly For May 26, 2009

• Dividend Diagnosis

• Sector Examinations

• Recent Vital Signs

• Critical Events

• Dividend changes in Q4 2008

– General Electric

– Dow Chemical

– J.P. Morgan Chase

– International Paper

Feature: Dividend Cuts And Eliminations

Dividends: Tankers

General Maritime

•$2.00 per share annual dividend target

• Management intends “visible and consistent” income stream

Frontline

• Reduced quarterly dividend from $.50 to $.25 in Q4 2008

• EPS Q4 08 $.66 vs $2.70

Dividends: Dry Bulk

Dryships

•Jan. 2009 suspended dividend after 14 consecutive quarterly payments

•EPS Q1 09 ($.93) vs $4.58

Eagle Bulk

• Q4 2008 suspended dividend

•EPS Q1 09 $.37 vs $.31

Dividends: Container

Alexander Baldwin

• $.315 per share dividend in Q1 09

• 106 years of consecutive dividends

Seaspan

• Q1 09 reduced quarterly dividend to $.10 from $.475

• EPS Q1 09 $.25 vs $.30

Dividends: Intermodal

Pacer

• Q1 2009 suspended dividend

•EPS Q1 09 ($5.11) vs $.39

Union Pacific

• $.27 quarterly dividend

•110 consecutive years of payment

•EPS Q1 09 $.72 vs $.85

Top Holdings

Johnson/Johnson 8.3%

Pfizer 7.0%

Merck 5.8%

Sector Focus: Pharmaceuticals (IHE)

Ap 30 3 Mo. 6 Mo. 1 Yr.

IHE -5.2% -2.6% -15.1%

S&P

500

6.4% -8.5% -35.2%

Sector Focus: Pharmaceuticals: The Quigley Corp

• Negative earnings

•Declining revenues

•Facilities consolidation

• Dissident shareholder takeover attempt

• Accusations of falsification and distortion

Top Holdings

United Tech 9.5%

Boeing 7.9%

Lockheed 7.8%

Sector Focus: Aerospace And Defense (ITA)

Ap 30 3 Mo. 6 Mo. 1 Yr.

ITA -1.4% -9.1% -37.3%

S&P

500

6.4% -8.5% -35.2%

Sector Focus: Aerospace And Defense: Boeing

• Three models seat up to 330

• 20% more fuel efficient

• 20% fewer emissions

• 10% better seat mile cost

• 30% savings in maintenance cost

Sector Focus: Aerospace And Defense: Lockheed

HULC

Human Universal Load Carrier

• Battery powered titanium legs

• Advanced onboard microcomputer

• Allows for deep squats, upper body lifting with minor exertion

U.S. Highlights

• Home construction may be finding a bottom

• Multi-family sector drops 46%

• Single-family rises 2.8%

U.S. Highlights: Home Builders

• Q1 09 Net Loss ($.55) vs ($.61)

• Revenues $409 million, down 51%

• Q2 09 Net Loss ($.34) vs. ($4.14)

• Revenues $775 million, down 51%

• Q1 09 Net Loss ($.75) vs. ($3.47)

• Revenues $307 million, down 61%

• GDP falls 6.1% in Q1 2009

• Most severe two quarters of contraction since 1958

• Consumer spending grew 2.2%

• Real disposable income rose 6.2%

U.S. Highlights

• Durable goods fell; first time since 2001

•Non-durable goods fell 4.6%

• Retail trade; first decline since 1991

• Finance and insurance fell 3%; first decline since 1992

• Health care up 4.6%

U.S. Highlights

• U.S. jobless claims

• U.S. consumer confidence

• Bank of Japan minutes

• Eurozone CPI and consumer spending

Coming This Week

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