INTEL CORP. $23 (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.7 billion; Market cap: $131.1 billion; WSSF Rating: Above average) has agreed to merge its solar-power technology into a new joint venture called SpectraWatt Inc. This new company will make photovoltaic cells from silicon. These cells are the primary component used in making solar panels that use sunlight to generate electricity. SpectraWatt will focus on new ways to improve existing industry manufacturing methods. The partners plan to build a new plant in Oregon later this year, and begin production in mid-2009. Intel is a buy.

Earnings at these two leading commodity producers have lagged recently. However, recent sales of less-profitable businesses put them in a good position to increase long-term profitability. ALCOA INC. $37 (New York symbol AA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 815.1 million; Market cap: $30.2 billion; WSSF Rating: Above average) is one of the world’s leading producers of aluminum. In February 2008, Alcoa sold its packaging and consumer businesses for $2.5 billion. These operations accounted for 11% of its total sales....

SUPERVALU INC. $33 (New York symbol SVU, Conservative Growth Portfolio, Consumer sector; Shares outstanding: 212.3 million; Market cap: $6.8 billion; WSSF Rating: Average) is the second-largest supermarket operator in the United States behind Kroger. Its 2,480 stores account for roughly 80% of its revenue. The remaining 20% comes from its food wholesale operations, which supply about 2,200 grocery stores. The company is still absorbing its June 2006 acquisition of 1,125 Albertsons supermarket stores for $11.4 billion in cash, new shares and assumed debt. Supervalu still feels the merger will eventually cut its annual pre-tax costs by $150 million to $175 million. Most of the savings will come from closing less profitable stores, and improving the efficiency of its warehouses with automated equipment. However, it will probably take the company another year or two to realize the bulk of these savings....

QUAKER CHEMICAL CORP. $26 (New York symbol KWR; Income Portfolio, Manufacturing & Consumer sector; Shares outstanding: 10.3 million; Market cap: $267.8 million; WSSF Rating: Average) is taking advantage of low-cost government financing to triple production capacity at its plant in Middletown, Ohio. The plant makes lubricants that protect machinery from corrosion. Quaker will also transfer some of its other operations to this bigger facility. This project will cost Quaker $19.8 million. However, it will receive about $13.5 million in low-interest loans. Quaker earned just $5.1 million or $0.50 a share in the first quarter of 2008. But the company feels that cost savings from this move will add $3 million to its annual cash flow. Quaker aims to complete the expansion by the end of 2009....

Demand for medical equipment tends to grow or hold steady, regardless of swings in the overall economy. Recurring revenues from long-time customers gives these four makers of medical equipment and supplies an advantage over other health stocks. They also face little competition from generic products. As well, their expanding international operations balance their exposure to a slowing U.S. economy. BECKMAN COULTER INC. $70 (New York symbol BEC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 62.9 million; Market cap: $4.4 billion; WSSF Rating: Average) makes lab equipment that doctors and medical researchers use to detect substances in bodily fluids. Beckman is a long-time favorite of ours, mainly because its automated systems help its customers cut the cost of routine tests. The company also continues to profit from a change in the way it leases its equipment. The switch helped make its products more affordable. As well, a broader customer base has spurred more demand for replenishible supplies and maintenance services. Beckman now gets close to 80% of its total revenue from selling supplies. These recurring revenue streams cut its risk....

APACHE CORP. $133 (New York symbol APA; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 333.6 million; Market cap: $44.4 billion; WSSF Rating: Average) explores for and produces oil and natural gas, mainly in North America. The company avoids long-term supply or hedging contracts, so it can sell its oil at rising current prices. In the three months ended March 31, 2008, earnings per share jumped to $2.99 from $1.48 a year earlier. These figures exclude unusual items. Cash flow per share rose 53.6%, to $5.53 from $3.60. Revenue grew 60.0%, to $3.2 billion from $2.0 billion. However, Apache relies on acquisitions to replenish its reserves. Higher oil prices could make future acquisitions more expensive....

We generally prefer large, integrated oil companies such as Chevron to regular oil producers like Apache, particularly in light of the steep jump in oil prices in the past few months. That’s because its diverse sources of cash flow, from refineries, gas stations and other operations give Chevron greater stability and cut its risk. As well, these assets will help Chevron stay profitable if oil prices fall. CHEVRON CORP. $99 (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 2.1 billion; Market cap: $207.9 billion; WSSF Rating: Above average) is the second-largest integrated oil company in the United States after ExxonMobil....

DEL MONTE FOODS CORP. $8.00 (New York symbol DLM; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 197.3 million; Market cap: $1.6 billion; WSSF Rating: Average) acquired its StarKist canned tuna division from Heinz in 2002, but rising prices for raw materials and strong price competition have hurt its profitability. Del Monte now makes more money from its canned fruit and vegetables and pet food operations than from StarKist. Consequently, Del Monte has now agreed to sell the StarKist business to South Korea’s Dongwon Enterprise Co. for about $300 million. StarKist supplies around 15% of Del Monte’s total revenue. The sale will give Del Monte more cash to expand its more profitable operations. Del Monte is a buy for aggressive investors.

ENCANA CORP. $88 (New York symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 749.7 million; Market cap: $66.0 billion; WSSF Rating: Average) produces oil and gas in Canada and the United States. Unlike Chevron (see at left), it favors unconventional production sources such as oil sands and shale gas deposits. Unconventional deposits take more time and money to bring into production, but they tend to have longer lives. Unlike regular natural gas, shale gas pools inside rock formations and does not easily flow to the surface. Gas producers use specialized techniques to release gas, such as cracking the rock with high water pressure and sand. That makes extracting shale gas about twice as expensive as production from traditional gas wells. EnCana’s daily gas output now runs to 3.7 billion cubic feet. It just bought new shale gas properties in British Columbia, Texas and Louisiana. In several years, EnCana feels each of these deposits could produce 1 billion cubic feet of gas a day....

OILEXCO INC., $17.94, symbol OIL on Toronto, rose as much as 11% last Friday after it discovered significant oil and natural gas bearing zones at its Moth project in Britain’s central North Sea. Drilling at the Moth well went to a depth of 14,616 feet. The well intersected a 605-foot-thick oil and gas-bearing reservoir and a second, deeper 219-foot reservoir. Test operations on the primary 605-foot target will begin immediately. Oilexco is the operator of the Moth project and holds a 50% interest. Its partners on the project are BG Group, Hess Oil and British Petroleum. The Moth discovery is Oilexco’s second major discovery in 2008. In February, it struck a new oil bearing zone at its 40%-owned Huntington field in Britain’s central North Sea. With strong oil prices for its rising Brenda/Nicol production in the North Sea, Oilexco’s outlook is positive. The company also continues to explore aggressively at its other projects in the North Sea, in addition to the Huntington and Moth fields....