DAVE HARRIS: This is Dave On Stocks podcast # 33. This show is for Monday Jan 22^nd 2007. I'm Dave Harris. I'm a long term investor managing a diversified portfolio of stocks. Let's review some of the earnings we had recently, I have my stock pick of the week, and then I'll review a little economic news.

I think we had some solid results from IBM. The ticker is IBM. The shares went down a bit after they said profit went up 11% at 2.31 per share-that was above expectations. The company's revenue of 26.3 billion also beat views. But the results didn't beat by enough in investor's eyes and the stock was traded down. I think there's an opportunity here to grab some shares at a discount. After all, profits were up 20% for all of 2006. I think it was a strong year for IBM. I see solid revenue for 2007 because the company had a big amount of services contract signings. Sales in computer hardware can use some improvement, but I see IBM at around $105 p/s. I would buy the stock here at around 96 dollars a share.

I'm a bit disappointed in Motorola's results. MOT is the symbol. There was a fall in prices for cell phones and general lack of strength in the business which resulted in a drop in profit. Still, the results came in above forecasts. EPS was .21 cents compared to .46 last year. The revenue had a 17% increase which was in line. There was a big drop in operating margin that surprised Wall Street. But I think the company will get a handle on a better pricing strategy. Also keep in mind that first quarter sales are expected at over 10 billion which is in line. Let's see what they have for us next earnings report. For now I would HOLD the shares.

The big conglomerate GE announced a profit in the 4^th quarter from a favorable showing for the healthcare and infrastructure business. The financial services division was positive too. The company also said the NBC universal unit is showing improvement and that the quarter was solid. The revenue for the 4^th quarter beat expectations and rose by 11%. The earnings from continuing operations came in at .64 cents per share and that met expectations and came in 12% above last year. Income and sales for the full year 2006 both beat Wall Street expectations. I thought the earnings were good for GE, although I was disappointed in industrial unit's performance because profit was down 12%, but the other divisions showed significant gains. Healthcare was up 16%, commercial finance up 18% and infrastructure had a 19% rise. For full year 2007, EPS from continuing operations is expected to rise about 12%. I suggest buying GE here at around $36.95 per share. I see it going to 45 dollars. Abbott labs (ABT) went up this week because GE is going to buy a portion of their testing division. Abbott is selling a bit high now at around 53.50. I would wait to buy more shares. Abbott reports earnings this Wednesday.

The bank Citigroup, symbol C, had a decrease in 4^th quarter profit, but the results beat expectations. The quarterly revenue went to 23.8 billion which was a record, and that was above expectations. The company also increased the quarterly dividend by 10%. The company expects to better manage their expenses this year because they have been rising too much lately-up23% in the 4^th quarter while revenue went up 15%. I think until the company has better control over their expenses, just HOLD your shares of Citigroup.

The stock pick of the week: That is AT&T. Here's a company that merged with BellSouth. Cingular wireless will be known as AT&T. They now have the largest wireless carrier with phone, internet, wireless phone and satellite TV. Also I like the 4.1% dividend yield. The company reports Thursday Jan 25th. Wait until after earnings, then consider buying shares of AT&T. The symbol is T. I think the stock is going to at least 40 dollars.

I think the consumer feels things are looking good. The University of Michigan's preliminary reading on consumer sentiment in January was 98. That's higher than December and a pretty good reading. Thursday this week there's a report on initial jobless claims and existing home That'll give us an idea of how manufacturing has been.

Earnings reports continue this week from the likes of chemical maker Dupont (DD), Johnson and Johnson (JNJ) the healthcare company, equipment maker Xerox (XRX) and searcher Yahoo (YHOO) on Tuesday. Utility company Exelon (EXC) and McDonald's restaurant (MCD) Wednesday. AT&T, symbol T and paper maker Kimberly Clark (KMB) on Thursday. Industrial goods company Honeywell (HON) reports Friday.

That's all for this podcast of Dave On Stocks. I'm Dave Harris. I'll talk to you again soon with another show. Write me with any questions or comments at the "contact us" link on this page. My website is www.daveonstocks.com. This is Dave On Stocks!