'Mad Mail'

Nucor (NUE)

Q:      What is it with NUE? Haven't you had CEO, Dan DiMicco on several times and he has said how wonderful they are doing, and how they are still turning profits?... What is with today's news that they are expecting to lose 55 to 65 cents per share? Did he say anything like that when he was on last? Is the divided safe?

Jim:    I don't know if the dividend is safe. That was very different from what he said. I think this is one of those instances where I have no ability to forecast what he can't forecast. But I thought it was a very disappointing announcement. It does happen. Executives do not get it right all the time. We don't have the ability to know all the time what is going to happen.

'Mad Mail'

Altria (MO*)

Q:      I recently noticed a sign at my local cigarette shop alerting customers to a $7.00 per carton tax increase coming April 1, due to passage of the SCHIP legislation. This comes on top of a $3 per carton increase about a month ago. With the bargain brands, this represents almost a 50% price hike, and about a 25% increase in the cost of premium brands. With this in mind, is it time to get out of Altria in anticipation of a steep decline in revenues?

Jim:    I had this same conversation with Sid, at my newstand, where I get my papers, and it made me trim my position in MO for ActionAlertsPlus.com... I still have a huge position in it, because of the dividend. And Sid said, look Jim... $8 a pack... that made me blanch, so I took some profit... well, it was a loss, but I cut it back... and I can't tell you to do differently, if that's what I did, although I remain a substantial shareholder in MO, for ActionAlertsPlus.com, my charitable trust.