J.P. MORGAN CHASE & CO. $38.07, New York symbol JPM, fell 10% this week after the company said it would write down the value of its mortgage-backed investments by $1.5 billion due to the ongoing liquidity problems in the credit markets. That’s 36% more than its second-quarter writedowns of $1.1 billion. To put these figures in context, Morgan earned $2.0 billion or $0.54 a share after writedowns in the three months ended June 30, 2008. The company also holds $5 billion in auction-rate securities. The interest rate on these securities depends on bids that buyers submit during periodic auctions. However, demand for these securities is slowing, which hurts their liquidity. Due to pressure from regulators, Morgan has now agreed to buy back $3 billion of these securities that it sold to retail investors. Morgan will probably realize a pre-tax loss of about $400 million on the repurchase. Further writedowns are possible. However, we feel that Morgan’s wide sources of income and broad geographic operations cut its overall risk. As well, its recent purchase of Bear Stearns strengthens its brokerage operations, and should eventually add $1 billion to its annual earnings....

RUSSEL METALS, $30.09, symbol RUS on Toronto, rose over 9% this week after it reported higher revenue and earnings. In the three months ended June 30, 2008, its profits nearly tripled to $78.8 million or $1.25 a share from $29.3 million or $0.47 a share a year earlier. Earnings exceeded consensus expectations of $1.16 a share. Revenues rose 31.2%, to $856.3 million from $652.8 million. In the latest quarter, higher steel prices and improved same-store volumes boosted sales at its metals service centers by 34%. The metals service centers account for 58% of Russel’s revenues and 60% of its profits. Strong U.S. energy operations and growing Alberta oil sands business helped sales of energy tubular products (28% of total sales), which rose 41%. The company will pay a special dividend of $0.05 a share on September 15, 2008. That’s in addition to its regular $0.45 quarterly dividend, which implies an annual yield of 6.0%....

MOLSON COORS BREWING CO. $49.91, New York symbol TAP, fell 10% this week, as rising costs for raw materials and energy more than offset rising sales. In the three months ended June 29, 2008, earnings before unusual items fell 2.0%, to $172.6 million from $176.1 million a year earlier. Per-share earnings fell 4.1%, to $0.93 from $0.97, on more shares outstanding. Sales rose 5.9%, to $1.8 billion from $1.7 billion. Sales gains in the United States and the UK offset a small drop in Canada. The company’s latest cost-cutting plan will help it cope with higher grain and other costs. So far, it has cut its annual expenses by $138 million. It should reach its goal of $250 million in annual savings by the end of 2009. The company’s new joint venture with SABMiller plc will also enhance its long-term profitability. Molson Coors is still a buy....

MOLSON COORS BREWING CO. $57 has received approval from anti-trust regulators to merge its operations in the United States and Puerto Rico with those of rival brewer SABMiller plc. The new venture will account for about 30% of U.S. beer sales. The cost savings will also help Molson Coors compete with market leader Anheuser-Busch, which recently accepted a takeover offer from Belgian brewer InBev NV. Best Buy. T. ROWE PRICE GROUP INC. $59 earns fees based on the value of the securities in the mutual funds it manages. The recent stock market downturn could hurt its earnings growth this year. However, the company’s growing overseas operations help offset its exposure to the United States. As well, it recently expanded its share buyback program. Buy. MCKESSON CORP. $59 has doubled its quarterly dividend, from $0.06 a share to $0.12. The new annual rate of $0.48 yields 0.8%. Buy.

GENERAL ELECTRIC CO. $29 (New York symbol GE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 10.0 billion; Market cap: $290.0 billion; WSSF Rating: Above average) is one of the world’s largest industrial companies. It operates in six main segments: Infrastructure (33% of 2007 revenue, 37% of profit); Commercial Finance (20%, 21%); Consumer finance (18%, 14%); Healthcare (10%, 11%); Industrial (10%, 6%); and Media (9%, 11%). The company now plans to shed some of its slowgrowing businesses, and focus on its more promising operations. Consequently, GE will spin off its Consumer & Industrial division to its stockholders as a separate company next year. These businesses make household appliances, light bulbs and electrical equipment. The spinoff should help GE unlock value, and reduce its holding-company discount....

TENNANT CO. $27 (New York symbol TNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 18.5 million; Market cap: $499.5 million; WSSF Rating: Average) has developed a new floor scrubbing machine that cleans without detergents. Called ‘ech2o’, this scrubber uses electricity to enhance the cleaning power of ordinary tap water. That cuts its operating costs. As well, the new scrubber should appeal to schools, hospitals and other users with concerns about the environmental impact of cleaning chemicals. Innovative products like the ech2o will help expand Tennant’s 2008 earnings to $2.15 a share, which gives it p/e of just 12.6....

STATE STREET CORP. $72 (New York symbol STT; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 431.3 million; Market cap: $31.1 billion; WSSF Rating: Average) earned $570 million in the second quarter of 2008, up 55.7% from $366 million a year earlier. Most of that gain was due to State Street’s acquisition of Investors Financial Services Corp. in July 2007 for $4.2 billion in stock. Due to more shares outstanding, earnings per share in the quarter grew just 30.8%, to $1.40 from $1.07. Revenue rose 42.1%, to $2.7 billion from $1.9 billion. The company’s fee income varies with the value of the assets it manages. Despite the recent stock market downturn, assets under management fell just 2.1%, to $1.89 trillion at June 30, 2008 from $1.93 trillion a year earlier, due to its larger client base. State Street is a buy....

SHERWIN-WILLIAMS CO. $54 (New York symbol SHW; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 117.5 million; Market cap: $6.3 billion; WSSF Rating: Above average) gained nearly $10 after the Supreme Court of Rhode Island dismissed a class-action lawsuit that claimed paint makers were liable for harm caused by lead paint they made and sold decades earlier. The Rhode Island ruling also prompted prosecutors in Columbus, Ohio to drop a similar lawsuit. While the ruling is a plus for Sherwin-Williams, it needs oil to make its paints, and rising oil costs continue to hurt its profits. In the three months ended June 30, 2008, earnings fell 15.3%, to $171.7 million from $202.6 million a year earlier. Per-share earnings fell just 4.6%, to $1.45 from $1.52, due to fewer shares outstanding. Sales rose slightly, to $2.22 billion from $2.20 billion. Sherwin-Williams is a hold.

Alliant and Ameren have moved down lately, largely due to fears that floods in the Midwest and rising fuel costs will hurt their earnings growth. However, power regulators will probably let them recover these extra costs through higher rates. ALLIANT ENERGY CORP. $33 (New York symbol LNT; Income Portfolio, Utilities sector; Shares outstanding: 110.4 million; Market cap: $3.6 billion; WSSF Rating: Average) supplies electricity and natural gas to customers in Wisconsin, Iowa, Minnesota and Illinois. Recent flooding forced the company to suspend operations at two of its generating stations in Cedar Rapids, Iowa. Although insurance will help cover some of its losses, the company estimates the flood will cut its 2008 earnings by $0.20 a share....

MOTOROLA INC. $7.47 (New York symbol MOT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 2.3 billion; Market cap: $17.2 billion; WSSF Rating: Average) has struggled in the past few months due to falling sales and earnings at its mobile phone operations. Under pressure from activist investor Carl Icahn, who owns about 6% of the stock, Motorola now plans to break itself up into two publicly traded companies — the mobile phone business (52% of sales in 2007), and the wireless infrastructure and home equipment operations (48%). Motorola is still working out the details of the split, which it expects to complete in 2009. The company will structure the transaction as a tax-free distribution. Motorola’s phone business faces growing competition from high-end smartphones that can retrieve email and connect to the Internet, particularly Apple’s iPhone. Motorola is also losing market share to makers of low-cost phones designed for emerging markets such as China and India....