Updating Our Conservative Stocks Xerox Corp., Gannett Co. Inc. and Intel Corp.

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XEROX CORP. $17 (New York symbol XRX) has agreed to acquire Advectis Inc. for $32 million. Advectis makes software that helps mortgage lenders electronically store and share documents. The price is just 12% of the $266 million or $0.28 a share that Xerox earned in the second quarter of 2007. But the deal gives Xerox an opportunity to market its printers and copiers to Advectis’s growing client base. Buy. GANNETT CO. INC. $45 (New York symbol GCI) has completed a two-year plan to shrink the width of its 85 daily newspapers to cut paper costs. Further size reductions are possible, but the costs to redesign layouts could outweigh any extra savings. Meanwhile, Gannett has increased its dividend 29% to $1.60 a share (3.6% yield). Best Buy. INTEL CORP. $26 (NASDAQ symbol INTC) plans to launch its new chips for corporate server networks in November. These chips are 60% smaller than current chips, but 20% more powerful. The new chips should help…