Stock Picks for October 10, 2007

The fed minutes hinted at little risk of inflation which leaves the bias at staying where we are or possibly lowering if the credit problems return. If you hear us talk about deliquencies still rising and rates still resetting all the time you realize that there is at least the potential for more credit issues, which would lead to more rate cuts.  We will have to wait and see...An S&P analyst came out today and said we are around 50% through the credit woes and there is $150 billion in credit losses lasting all the way into 2009. Alcoa results were strong even though they missed EPS by a penny.  Top line was where we thought.  Interesting enough they raised their buyback to 25%.  This *only* means strength.  Good to see. Retail still a bit sluggish from same store sales numbers. Oil is right back up above $80, with the price rising above $81 at one point on news that energy costs could rise as much as 10% for the winter. We still believe we will get some pullbacks and more buying of stock picks opportunities.  Stay tuned for more stock picks and price adjustments.